Got my PR but Employer demand re-signing of new contract

[tealy]

Hi board,

I have recently been granted a PR status. My employer (Employment Agency) has requested that I must re-sign a new contract next week before they can start processing and paying my CPF.

However, I had just signed my contract 2 months ago. I have a feeling the contract they are drafting will be against my best interest. Likely to impose a bond and/or requesting for reduction in basic salary to make up for employer CPF contribution.

Assuming that I refuse to sign this new contract, since my current contract is active till end of 2019, can they really not pay my CPF? Will my current contract still be valid?

Do I also need to prepare myself to seek services from a lawyer to force them to honour current contract?

Thanks for reading!

[sundaymorningstaple]

You can sign a new contract or wait for them to fire you (and they WILL be able to find a reason, believe me). If you have only been there for 2 months you probably have 3 months probation anyway. So they can just say lack of corporate fit and you are outta there. Obviously, you should expect that as you know that they have to pay an additional 17% on your wages that they didn't bargain for when they hired you. So you go with the flow or quit or wait for them to sack you. Your choice.

I would imagine you didn't say anything about your pending application for PR when you were interviewed, did you. If not, more's the reason to fire you for not disclosing all facts that could impact your employment.

[tealy]

You can sign a new contract or wait for them to fire you (and they WILL be able to find a reason, believe me). If you have only been there for 2 months you probably have 3 months probation anyway. So they can just say lack of corporate fit and you are outta there. Obviously, you should expect that as you know that they have to pay an additional 17% on your wages that they didn't bargain for when they hired you. So you go with the flow or quit or wait for them to sack you. Your choice.

I would imagine you didn't say anything about your pending application for PR when you were interviewed, did you. If not, more's the reason to fire you for not disclosing all facts that could impact your employment.

Hi there,

Sorry for not being clearer. I have been with the same agency for 3 years and I have applied for the PR under them. My renewal contract with the company was signed 2 months ago. I only got my PR beginning on June 2018. So my CPF employer contribution rate would not be 17%.

It's all so sudden because when I requested for the company to fill up the Annex A of my PR application 12 months ago, there was no mention of potential bond/salary reduction. They only brought it up (new contract) after my PR was approved.

[tealy]

You can sign a new contract or wait for them to fire you (and they WILL be able to find a reason, believe me). If you have only been there for 2 months you probably have 3 months probation anyway. So they can just say lack of corporate fit and you are outta there. Obviously, you should expect that as you know that they have to pay an additional 17% on your wages that they didn't bargain for when they hired you. So you go with the flow or quit or wait for them to sack you. Your choice.

I would imagine you didn't say anything about your pending application for PR when you were interviewed, did you. If not, more's the reason to fire you for not disclosing all facts that could impact your employment.

Hi there,

Sorry for not being clearer. I have been with the same agency for 3 years and I have applied for the PR under them. My renewal contract with the company was signed 2 months ago. Therefore they were aware at the point of my re-contract that I could potentially get my PR soon. I only got my PR beginning on June 2018 (a year after applying). So my CPF employer contribution rate would not be 17%.

It's all so sudden because when I requested for the company to fill up the Annex A of my PR application 12 months ago, there was no mention of potential bond/salary reduction. They only brought it up (new contract) after my PR was approved.

[PNGMK]

Theu have every right to adjust your salary to compensate for your new CPF contributions. You have no reason to earn more in total that you originally contracted for without some other argument than just becoming a PR.

[sundaymorningstaple]

Actually, you are partially right, the employer's contributons would be 17% until the beginning of the 3rd year, UNLESS both the employee and employer agree to pay you and deduct from you the full amount from the beginning of PR (which is entirely legal). Anyway, you will find that contracts here are generally employer biased and unless the employer is arguing something stupid, the employer will generally win. And as the contract does indicate the employers total cost to employ you (assuming we are talking about an EP here) is the amount of your wages states in the contract based on the fact that you will be hired as a EP holder and not as a resident PR or citizen. Once your residency situation changes and that will cost the company more expenses, then you can expect the courts to find in the favour of the Employer. That's just the way it is here. And to make matters worse, your subsidies are next to nothing as a PR but you will pay the same tax rates as a local. PR today isn't all it's cracked up to be. I know, I've been one for a quarter of a century now.

[cittakaro]

Actually, you are partially right, the employer's contributons would be 17% until the beginning of the 3rd year, UNLESS both the employee and employer agree to pay you and deduct from you the full amount from the beginning of PR (which is entirely legal). Anyway, you will find that contracts here are generally employer biased and unless the employer is arguing something stupid, the employer will generally win. And as the contract does indicate the employers total cost to employ you (assuming we are talking about an EP here) is the amount of your wages states in the contract based on the fact that you will be hired as a EP holder and not as a resident PR or citizen. Once your residency situation changes and that will cost the company more expenses, then you can expect the courts to find in the favour of the Employer. That's just the way it is here. And to make matters worse, your subsidies are next to nothing as a PR but you will pay the same tax rates as a local. PR today isn't all it's cracked up to be. I know, I've been one for a quarter of a century now.

Hi SDS,

Quick question. What if I am hired under PR year 2, and next year will be my 3rd year. Will they adjust my salary to lower?

Thanks.

[sundaymorningstaple]

Believe me, they will know what they are doing. No, it will probably not be adjusted again, as they will have already compensated in the new contract for that, or you might not get the increment you thought you would at the beginning of the third year. But I've not heard of that being done.

[cittakaro]

Believe me, they will know what they are doing. No, it will probably not be adjusted again, as they will have already compensated in the new contract for that, or you might not get the increment you thought you would at the beginning of the third year. But I've not heard of that being done.

Thanks SMS.