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.