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hii all

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confusedpuppy
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hii all

Postby confusedpuppy » Tue, 27 Mar 2018 11:14 pm

Hi All,

my new company says if "i leave the company within 1 year of joining, they will deduct 12% of annual gross salary being received by me at time of resignation".

This clause they have put is confusing to me.

suppose my salary per month is 5k and if i resign after 2 months, will they calculate 12% of 10K ( 5k for 2 months ) ?

OR

will they calculate 12% of what i would have got annually ie., 12% of 60K ( 5k for 12 months ) ?

Please clarify which of above is true. I asked them about the clause but didnt get an answer.

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sundaymorningstaple
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Re: hii all

Postby sundaymorningstaple » Thu, 29 Mar 2018 3:16 pm

Can you post 'exactly' what is written in your contract (verbatim).

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Re: hii all

Postby confusedpuppy » Thu, 29 Mar 2018 3:57 pm

This is what exactly is written -

"If you resign from the company within 12 months of commencement of employment with the company, you would reimburse an amount equal to 12% of the annual gross salary being received by yourself at the time of resignation".

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Re: hii all

Postby sundaymorningstaple » Thu, 29 Mar 2018 5:34 pm

That means, if you are on $5K/mo salary your gross annual salary would be $60K/pm or a penalty of $7,200. Should you quit in the 1st 12 months and say you have received a raise one full month before you quit, then your penalty would be $6K x 12 = $72K x 12% = $8,640

"....you would reimburse an amount equal to 12% of the annual gross salary being received by yourself at the time of resignation"

At any given point in time, your current salary annualized would be designated as 12 x your current monthly rate.

Assume you got a raise on the 1st of July from $5K/mo to $6K/mo. If I asked you, in the month of March, what your annual salary would be you would tell me $60K/pa correct?

If I asked you the same question in September the same year after the increment in July, you would tell me $72K/pa. But if I asked you the following January. What was your annual salary last year, you would then tell me $66K. Annualised salary is whatever your current salary is x 12 months.

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Re: hii all

Postby confusedpuppy » Thu, 29 Mar 2018 8:26 pm

Thanks for reply.

Thats too much of money to collect. They claim that its onboarding cost. To be frank they have not spent this much on onboarding. Its just they applied my EP nothing else, like they didnt pay relocation, accommodation anything.

What are the implications if i dont agree to pay that much amount before leaving ??

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Strong Eagle
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Re: hii all

Postby Strong Eagle » Thu, 29 Mar 2018 9:15 pm

confusedpuppy wrote:What are the implications if i dont agree to pay that much amount before leaving ??


You have signed an employment agreement, which is a legally binding contract between you and the company. You have agreed to these terms. Therefore, should you leave early and not make a payment, the company is within its rights to pursue legal actions to recover the money you agreed to pay under the contract.

Whether they will actually do so is another matter. They may send you demand letters. They may threaten you with legal action. But they may not actually go to court because it will end up costing more than they will collect from you.

Thing is, you don't know what they will do, and, they have a legal right to the money under the contract they signed. You can bet money they will bad mouth you and probably attempt to blackball you, but that's another matter.

Personally, I find such clauses to be chickenshit and would not sign an agreement that had one in it. Besides, what kind of work performance is the company going to get out of an employee who wants to leave but doesn't because of fear about paying back a large sum of money?

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Re: hii all

Postby confusedpuppy » Mon, 21 May 2018 8:28 pm

You mentioned that they can take any action. Can they legally go up to that extent that they 1) they will not give me my relieving letter
2) or they may not pay me last month salary ie., salary for the month of notice period etc. ??

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Strong Eagle
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Re: hii all

Postby Strong Eagle » Mon, 21 May 2018 8:47 pm

confusedpuppy wrote:You mentioned that they can take any action. Can they legally go up to that extent that they 1) they will not give me my relieving letter
2) or they may not pay me last month salary ie., salary for the month of notice period etc. ??


About the only place that seems to care about "relieving letters" is India. I've not seen them in Singapore. Why do you need one?

As for money, if you're not meeting your terms of the contract, why should they meet theirs?

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Re: hii all

Postby PNGMK » Tue, 22 May 2018 9:45 am

You won't get a dime out of them if you quit. You'll have trouble getting your tax clearance settled as well.
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