Advice needed for employment contract.. - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Income and Jobs

Income and Jobs Discuss jobs, career options and of course salaries




Advice needed for employment contract..

Reply
 
Thread Tools
  #1 (permalink)  
Old 30-04-2021, 01:15 PM
Junior Member
 
Join Date: Apr 2021
Posts: 1
razorboy is on a distinguished road
Unhappy Advice needed for employment contract..

So the situation is I signed an employment contract with Firm A but after signing the contract, a more attractive job offer from Firm B came and I accepted the offer.

I then informed Firm A of my changed decision before the scheduled commencement date of employment and Firm A now wants me to pay half a month's salary as liquidated damages of not commencing employment based on the clause in the signed contract or legal action will be taken against me.

I researched online that the 'liquidated damages clause' stated within the contract cannot be enforced if it is in nature imposing a penalty to punish for the breach or to deter the breach of the employment contract, which I believe it is in this case since the amount of S$2,000+ is not a genuine estimate of the damages the company will have to bear as a result of my termination especially since it is before the start of my employment (the genuine amount of damages suffered by the company is the only thing enforceable in a contract).

Can anyone give advice on whether I am liable to pay the S$2,000 and if I do not, will Firm A really take legal action against me? Thanks..

Reply With Quote
  #2 (permalink)  
Old 30-04-2021, 10:27 PM
Senior Member
 
Join Date: Sep 2011
Posts: 86
villan is on a distinguished road
Default

Quote:
Originally Posted by razorboy View Post
So the situation is I signed an employment contract with Firm A but after signing the contract, a more attractive job offer from Firm B came and I accepted the offer.

I then informed Firm A of my changed decision before the scheduled commencement date of employment and Firm A now wants me to pay half a month's salary as liquidated damages of not commencing employment based on the clause in the signed contract or legal action will be taken against me.

I researched online that the 'liquidated damages clause' stated within the contract cannot be enforced if it is in nature imposing a penalty to punish for the breach or to deter the breach of the employment contract, which I believe it is in this case since the amount of S$2,000+ is not a genuine estimate of the damages the company will have to bear as a result of my termination especially since it is before the start of my employment (the genuine amount of damages suffered by the company is the only thing enforceable in a contract).

Can anyone give advice on whether I am liable to pay the S$2,000 and if I do not, will Firm A really take legal action against me? Thanks..
tell firm A u start on 1st day and resign on the same day....see what they say.

Reply With Quote
  #3 (permalink)  
Old 30-04-2021, 10:48 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by razorboy View Post
So the situation is I signed an employment contract with Firm A but after signing the contract, a more attractive job offer from Firm B came and I accepted the offer.

I then informed Firm A of my changed decision before the scheduled commencement date of employment and Firm A now wants me to pay half a month's salary as liquidated damages of not commencing employment based on the clause in the signed contract or legal action will be taken against me.

I researched online that the 'liquidated damages clause' stated within the contract cannot be enforced if it is in nature imposing a penalty to punish for the breach or to deter the breach of the employment contract, which I believe it is in this case since the amount of S$2,000+ is not a genuine estimate of the damages the company will have to bear as a result of my termination especially since it is before the start of my employment (the genuine amount of damages suffered by the company is the only thing enforceable in a contract).

Can anyone give advice on whether I am liable to pay the S$2,000 and if I do not, will Firm A really take legal action against me? Thanks..
Ignore firm A. I dont believe they will take legal action.
U ceo quality ah?
Why waste a few k hire lawyer to sue you

Reply With Quote
  #4 (permalink)  
Old 01-05-2021, 12:52 AM
Unregistered
Guest
 
Posts: n/a
Default

Agree with all the posters above, they’re just trying to scare you into working there. Even if you do work there just hand in your resignation lor what can they do LOL. You sound like a fresh grad, dont give in to all these fear tactics
Reply With Quote
  #5 (permalink)  
Old 01-05-2021, 01:12 AM
Unregistered
Guest
 
Posts: n/a
Default

Just to be clear, you have no legal basis to say you don't have to pay. If it's in the contract, let's just assume for the sake of argument this thing goes all the way to the Court of Appeal, my money is on 9 times out of 10 you are going to have to pay the amount. That whole penalty doctrine thing is not applicable here.

What the posters above are basically saying is that the company will not waste the time to try to enforce this clause against you. On this, I don't know how large this Firm A is, but if they have their own inhouse department, it will cost them nothing to send a Letter of Demand to you. It is also very easy for them to make a claim in the small claims tribunal against you.

Best to try to settle it amicably, otherwise please know what you are getting into if you ignore their requests for payment. Things might go well, they might not. But legally, you are definitely in the wrong.
Reply With Quote
  #6 (permalink)  
Old 01-05-2021, 03:39 AM
Unregistered
Guest
 
Posts: n/a
Default

Real lawyers will avoid giving advice online since doing so might potentially breach their professional rules of conduct. Please at least go to a free legal clinic to seek advice on this matter.
Reply With Quote

  #7 (permalink)  
Old 01-05-2021, 04:01 AM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
Just to be clear, you have no legal basis to say you don't have to pay. If it's in the contract, let's just assume for the sake of argument this thing goes all the way to the Court of Appeal, my money is on 9 times out of 10 you are going to have to pay the amount. That whole penalty doctrine thing is not applicable here.

What the posters above are basically saying is that the company will not waste the time to try to enforce this clause against you. On this, I don't know how large this Firm A is, but if they have their own inhouse department, it will cost them nothing to send a Letter of Demand to you. It is also very easy for them to make a claim in the small claims tribunal against you.

Best to try to settle it amicably, otherwise please know what you are getting into if you ignore their requests for payment. Things might go well, they might not. But legally, you are definitely in the wrong.
Recruitexpress leech spotted
Reply With Quote
  #8 (permalink)  
Old 01-05-2021, 09:41 AM
Senior Member
 
Join Date: Sep 2011
Posts: 86
villan is on a distinguished road
Default

just give them 2 options:

1) drop the matter
2) you will proceed to join and resign on the same day, thus giving them 1 week notice (per the contract).

they will choose 1. no point onboarding you, issue laptop..etc when you will be leaving in 1 week's time
Reply With Quote
  #9 (permalink)  
Old 25-12-2021, 12:36 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by razorboy View Post
So the situation is I signed an employment contract with Firm A but after signing the contract, a more attractive job offer from Firm B came and I accepted the offer.

I then informed Firm A of my changed decision before the scheduled commencement date of employment and Firm A now wants me to pay half a month's salary as liquidated damages of not commencing employment based on the clause in the signed contract or legal action will be taken against me.

I researched online that the 'liquidated damages clause' stated within the contract cannot be enforced if it is in nature imposing a penalty to punish for the breach or to deter the breach of the employment contract, which I believe it is in this case since the amount of S$2,000+ is not a genuine estimate of the damages the company will have to bear as a result of my termination especially since it is before the start of my employment (the genuine amount of damages suffered by the company is the only thing enforceable in a contract).

Can anyone give advice on whether I am liable to pay the S$2,000 and if I do not, will Firm A really take legal action against me? Thanks..
Hi, can I check did u pay for compensation? I just came across this and need some advice? I have sign with the clause saying if I renege after signing of the recruiter LOA and reject, they have to seek $3k compensation. This happen 6 months ago and recruiter now threaten to commence action if I do not pay. Will recruiter sue me?

Anyone encountered this before and any advise?
Reply With Quote
  #10 (permalink)  
Old 25-12-2021, 12:41 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
Ignore firm A. I dont believe they will take legal action.
U ceo quality ah?
Why waste a few k hire lawyer to sue you
This type of case, Chinatown lawyer firm can liao, no need hire specifically.

Such firm just help to stamp their letterhead to chase money to scare people.
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Employment Contract The_Monkey Income and Jobs 12 24-10-2017 12:02 PM
Job Offer and Employment Contract aruddyk Income and Jobs 0 14-08-2017 09:23 PM
2 contract staffs needed. Preferably Students! OMG-Consulting Income and Jobs 1 04-04-2013 09:49 AM
Any advise on negotiating employment contract (IT job) deadman Income and Jobs 6 04-11-2011 11:55 AM
(advise needed) Training bond and contract signing flixonase Income and Jobs 7 24-03-2011 12:16 AM

» 30 Recent Threads
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,810 Replies, 1,045,993 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
15,331 Replies, 4,986,194 Views
Career as Teacher ( 1 2 3... Last Page)
10,862 Replies, 6,674,828 Views
Lawyer Salary ( 1 2 3... Last Page)
21,016 Replies, 10,332,852 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
1,051 Replies, 440,998 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,386 Replies, 2,325,497 Views
Civil Service Current Estimated... ( 1 2 3... Last Page)
172 Replies, 309,893 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
681 Replies, 389,277 Views
Compare civil service salary ( 1 2 3... Last Page)
16,346 Replies, 12,459,768 Views
GovTech ( 1 2 3... Last Page)
5,164 Replies, 2,165,595 Views
UOB Management Associate Program ( 1 2 3... Last Page)
1,459 Replies, 785,172 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,331 Replies, 1,142,820 Views
ITE Polytechnic Scheme ( 1 2 3... Last Page)
311 Replies, 369,674 Views
Why Is Having a Google Virtual...
1 Replies, 6,803 Views
How is life as a doctor in... ( 1 2 3... Last Page)
7,240 Replies, 3,400,501 Views
JP Morgan ( 1 2 3... Last Page)
199 Replies, 173,563 Views
Mining Industry ( 1 2 3... Last Page)
80 Replies, 74,576 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
5,340 Replies, 4,773,980 Views
ST Electronics ( 1 2 3... Last Page)
3,768 Replies, 1,545,775 Views
Is getting a PMP worth it ?
4 Replies, 7,189 Views
Visa Graduate Development Program ( 1 2 3... Last Page)
207 Replies, 134,774 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
6,922 Replies, 2,903,870 Views
Nparks ( 1 2 3... Last Page)
39 Replies, 34,455 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,828 Replies, 4,658,170 Views
Constituency Manager (People... ( 1 2 3... Last Page)
989 Replies, 814,129 Views
Julius Baer Graduate Program 2023 ( 1 2 3)
21 Replies, 14,861 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
752 Replies, 359,102 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,464 Replies, 1,376,081 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,260 Replies, 614,089 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,123 Replies, 3,740,149 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 10:17 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2