Advice needed for employment contract..

[razorboy]

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..

[villan]

Originally Posted by razorboy

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.

Originally Posted by razorboy

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

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

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.

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.

Originally Posted by Unregistered

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

[villan]

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

Originally Posted by razorboy

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?

Originally Posted by Unregistered

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.