Hi everybody,
I'm new here and would like some advice regarding the above
subject..
Has anyone here signed a contract with job agencies that requires
you to pay compensation if you resign before the completion date or
if you did not turn up for the job?
If yes, did you eventually pay up? Or ignore?
As I look through the MOM website, I realize that compensation
demanded by job agencies are not valid in the employment act.
Thanks in advance!
From MOM website:
Contracts with monetary compensation (in addition to notice
pay)
Contracts that require employees to pay a monetary compensation (in
addition to notice pay) to the employer for termination the
contract before the completion of a specified period are not
covered by the Employment Act. An employee can resign at any time
by serving the required notice in accordance with the provisions in
the employment contract.
The terms pertaining to monetary compensation (in addition to the
notice pay) for terminating the contract prematurely is a
contractual term and not governed by the Employment Act. Where
there are disputes, the civil court will have jurisdiction in
deciding the outcome.
New recruit who has signed the letter of employment but failed to
turn up for work
If a new recruit has signed the letter of employment but
subsequently informed the employer that he does not intend to start
work with the company and failed to turn up on his first day of
work,, the Employment Act does not apply as the employer-employee
relationship has not started.
Hence the employer will not be able to claim notice pay or any
compensation under the Employment Act.
If the employer wishes to claim compensation from the recruit, he
should pursue a civil claim through his own lawyer.