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in lieu of notice - what does it mean?

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jinnie
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in lieu of notice - what does it mean?

Postby jinnie » Mon, 11 Aug 2014 9:03 pm

I work for oil & gas in singapore and my employment contract I have this statement:

the company reserves the right to make a payment of basic salary in lieu of notice.


what does it mean? in lieu of notice? instead of notice? confused....

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Postby sundaymorningstaple » Mon, 11 Aug 2014 9:18 pm

It means if they decide to get rid of you, they can pay you your salary that would have been due during the notice period that they would be required to give you and let you go on the spot. If you are required to give one month's notice to quit, they only have to give you one month notice when they fire you. However, both of you ALSO have the option of giving one month salary "Instead of working out your notice period" or 'in lieu of" your notice period. So, if they fire you they can give you a month's salary in advance and send you packing on the spot.

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Postby jinnie » Mon, 11 Aug 2014 9:51 pm

sundaymorningstaple wrote:It means if they decide to get rid of you, they can pay you your salary that would have been due during the notice period that they would be required to give you and let you go on the spot. If you are required to give one month's notice to quit, they only have to give you one month notice when they fire you. However, both of you ALSO have the option of giving one month salary "Instead of working out your notice period" or 'in lieu of" your notice period. So, if they fire you they can give you a month's salary in advance and send you packing on the spot.


thanks, good, but what if I give them notice, will they pay me money for 3 month if the notice period is 3 months and I'm required to work for 3 months?

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Postby ecureilx » Mon, 11 Aug 2014 10:01 pm

jinnie wrote:]

thanks, good, but what if I give them notice, will they pay me money for 3 month if the notice period is 3 months and I'm required to work for 3 months?


some companies pay the notice period when the employee given notice, to see the employee out,NOW !!!!

most companies here in SG dont do so, and you have to serve the 1 or 3 months, work/KT, and its wishful thinking to get the golden handshake ..

and I know companies who have fired the employee while serving notice, for being disruptive and demanded to be compensated (the employees were real bad asses and tried to get off early to start the next work, btw .... )

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Postby jinnie » Mon, 11 Aug 2014 10:10 pm

ecureilx wrote:
jinnie wrote:]

thanks, good, but what if I give them notice, will they pay me money for 3 month if the notice period is 3 months and I'm required to work for 3 months?


some companies pay the notice period when the employee given notice, to see the employee out,NOW !!!!

most companies here in SG dont do so, and you have to serve the 1 or 3 months, work/KT, and its wishful thinking to get the golden handshake ..

and I know companies who have fired the employee while serving notice, for being disruptive and demanded to be compensated (the employees were real bad asses and tried to get off early to start the next work, btw .... )


Thanks, I just want to understand can it be the case that for my notice period they will send me for the gardening leave and won't pay anything, i.e. I won't be able to join any company during this time and won't be payed. Also is it possible if I continue to work, but with no pay - stupid, but just in case.

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Postby PNGMK » Mon, 11 Aug 2014 10:18 pm

It's garden leave. Unlike other posters I've had it paid three times in the 20 years I've worked here. It gives your employer the ability to remove you from the premises but keep you on a leash.

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Postby jinnie » Mon, 11 Aug 2014 10:30 pm

PNGMK wrote:It's garden leave. Unlike other posters I've had it paid three times in the 20 years I've worked here. It gives your employer the ability to remove you from the premises but keep you on a leash.


thanks, but may it be the case that they just prohibit me to be employed for 3 month without any pay?

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Postby AngMoG » Mon, 11 Aug 2014 10:42 pm

jinnie wrote:
PNGMK wrote:It's garden leave. Unlike other posters I've had it paid three times in the 20 years I've worked here. It gives your employer the ability to remove you from the premises but keep you on a leash.


thanks, but may it be the case that they just prohibit me to be employed for 3 month without any pay?


No. They will either have to:
- keep you employed and in the office and pay you
- keep you employed and at home and pay you ("garden leave")
- pay you in lieu of notice if the contract permits

Either way, they can withhold one month's salary to pay for taxes, which you should get within one month of your last day.

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Postby sundaymorningstaple » Mon, 11 Aug 2014 10:53 pm

AngMoG wrote:
jinnie wrote:
PNGMK wrote:It's garden leave. Unlike other posters I've had it paid three times in the 20 years I've worked here. It gives your employer the ability to remove you from the premises but keep you on a leash.


thanks, but may it be the case that they just prohibit me to be employed for 3 month without any pay?


No. They will either have to:
- keep you employed and in the office and pay you
- keep you employed and at home and pay you ("garden leave")
- pay you in lieu of notice if the contract permits

Either way, they can withhold one month's salary to pay for taxes, which you should get within one month of your last day.

Not any more. They have to file the IR-21 (Tax Clearance 30 days before the employee's last day of work (or possibly pay a $1000 fine for not doing so to). If filed manully, it will take approximately 3 weeks to clear. If filed on line it will clear in 7 to day 10 days. Then, the taxes will be paid, as calculated by IRAS, by the employer and deducted from your final salary. you should still receive any balance due you on your last day of work. The law DOES require, however, that the employer withhold all salaries until the tax clearance is paid and the employer receiving the clearance letter to release any monies remaining to the employer. You will also receive direct from the IRAS, copies of these letter which also tell you not to pay them, as they are directing your employer to do so. Also, as you will receive the copies as soon as the employer does (via snail mail) They can see it 2 or 3 days earlier as it will be online where it can be downloaded by the employer. So don't let them try to pull a fast one. Let them know that you will report them to IRAS and MOM if they try to hold your salary. (however, if you are fired on the spot, for cause, then the employer is not required to pay you notice pay and there will be a field on the tax clearance form as for the reason for short/no notice/late filing of the IR-21.

If you are put on garden leave, you are technically still employed by your employer and cannot go to work for another employer as they will not cancel your work permit until the notice period has been completed.


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