What is interesting is that the company is trying to cover their arses in as much as the contract that they gave you is in violation of IRAS rules. They are required by IRAS to give ONE MONTH of Notice as they have to file Tax Clearance for you 30 days before you final day of work. In theory they could be fined $1000 for every instance of that. In practice, however, I find it's rarely done, but the law IS there. It used to be adhered to prior to the 2011 elections but I guess in the interest of reducing FT headcounts, they've relaxed that a bit. In fact, they have added another reason for short notice in the dropdown list. "no Quota"
SMS, the HR mentioned to me that they are going to pay off the taxes, regardless of whether they have withheld enough or not. Then I will have to write them a check in case the amount they owe me minus the total tax amount is a negative figure.
So I think the law regarding 1 month notice and tax withholding doesn't really hold much water because anyways the employer is responsible to pay off the taxes in case the employee does a runner. But then I don't understand why the immigration guys trouble people who have outstanding taxes due, when they are about to leave the country, when the HR has delayed the tax clearance.
In my particular case I have leave encashment and some OT claims pending, so most probably I don't have to pay anything to the company. Even if I do have to pay its a couple of hundred dollars which is not a problem at all for me to pay them.
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