Company not paying my salary for my last 2 months

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peterson76
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Company not paying my salary for my last 2 months

Post by peterson76 » Sat, 12 Jun 2010 12:14 pm

I’ve been working as a contractor for 4 months for a well know Dutch bank.
I’ve decided to change to a permanent role. My hiring company has decided to claim compensation out of the contract, something which I don’t agree as it is not in the contract, but they are the ones paying and they have decided to keep the money from my salary and not pay me for my last 2 months (May and Jun)
Any advice on what to do to get my salary?
I went to the MOM and they only cover cases with salaries lower than 2K per month.
Is there no other option than going to court?
Thanks four your help !

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sundaymorningstaple
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Post by sundaymorningstaple » Sat, 12 Jun 2010 12:22 pm

Without actually seeing the T&A of your contract it's hard to tell. I would assume that you have to give at least one month's notice? Or pay salary in Lieu of if you just want to quit in order to join the bank direct. Or they may have a non-compete clause in the contract. Otherwise, you need to go see a lawyer and go after them in civil court as it is outside of MOM jurisdiction and you have already found out.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by peterson76 » Sat, 12 Jun 2010 12:29 pm

Thanks

Yes, I am serving the 1 month notice period (Jun) and they are trying to keep the salary for Jun too (they are already keeping the one from May)
I was thinking on not going to work this month, but this would be unfare for the bank as this problem is between my hiring company an me and not with the bank.

Thanks for your answer

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Post by peterson76 » Sat, 12 Jun 2010 12:31 pm

BTW, does anybody know what happens if I go to court and I win?
will the hiring company be obliged to pay the expenses of my lawyer? or is this something from the movies? ;)

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Post by Mad Scientist » Sat, 12 Jun 2010 2:02 pm

peterson76 wrote:BTW, does anybody know what happens if I go to court and I win?
will the hiring company be obliged to pay the expenses of my lawyer? or is this something from the movies? ;)
If MOM is not able to act on behalf of you due to your pay scale is above the criteria, engaging a lawyer is the way to go. This is call litigation.
From memory ;
1. A letter of demand will send to the defendant. This cost ranges from $100 to $500.00
2. This will be follow up with submission to court and getting a court order . Once you win the case, they will have to pay you. On your part the lawyer fee has to be borne by yourself NOT Like the movies. Only in the High Court certain percentage of defamation cost of the opposite lawyer fee will be borne by the losing party. Court fees is paid in full .
If it goes to the wire, you will need to prepare around $2 to $5K all in.
All docs pertaining to your employment must be brought along . From my understanding Anti Competitive Act is up and running hence I am not sure if your case falls into this category.
Shop around for employment lawyer. Go to Lawyer Society Website they should a number of them good in this areas

Good Luck
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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Post by sundaymorningstaple » Sat, 12 Jun 2010 2:59 pm

There is one other thing to consider as well. Did you give your notice "before" physically getting your pay for May?

If you did, then the employer has to hold that salary until they (the company" receive the Tax Clearance (IR-21) from IRAS for you. By law, once you give your notice, if you are a foreigner, they but freeze all salary payments "UNTIL" after receiving tax clearance. IRAS can take up to 30 days to give tax clearance if it was filed manually. If they file it online the company will get tax clearance in two weeks (usually 10-12 days). If any taxes are due to the government (especially if you have been here more than 60 days but less than 183 days - you would still be on a flat 15% tax basis) they have to pay those taxes on your behalf and then deduct said taxes from any remaining salaries due you.

They will get a letter (as you will as well) stating how much taxes are due to IRAS. So, please don't go off half-cocked as I do believe you've been here less than 183 days therefore you taxes will be a flat 15% of all salary earned inclusive of your notice period as well.

sms
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by peterson76 » Sat, 12 Jun 2010 3:45 pm

Yes, what you say is correct and it is part of what they are witholding. I have nothing against witholding the taxes part. It is the rest of my two months salary what I am against.
In fact the ammount they claim is not really 2 months, but 2 months minus these taxes for IR21 ... when I realized this I noticed the whole game they are playing ... very unethical ...
I have, of course, discussed this with them long, two times.
When I realized they were witholding May, they told me is for the taxes, then I asked to free up May and withold the tax ammount in Jun.
That's when they changed their version and said they were witholding both months as compensation ...
I will not continue ... but the whole thing was very bizare,,, specially at the begining when I didn't realize what they were trying to do.
Now I see it clear, as they were trying to get as much money as they could from the beginning, and they just tryied to confuse me ...
Anyway .. thanks for your comments :)

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Post by sundaymorningstaple » Sat, 12 Jun 2010 3:54 pm

It now seems like there is part of this story we are unaware of. I don't think things are quite what them seem. :-k
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by Mad Scientist » Sat, 12 Jun 2010 4:08 pm

OP

Read this link and see if your contract falls into this category
http://app.mti.gov.sg/default.asp?id=570

I have to agree with SMS. There are things that are not being unfolded here.
OP , I suggest b4 you start your litigation ,cover all your bases , as they can counter claim you.
We have contractors b4, they have high pay but less freebies. Work was demanding and the devil is in the employment contract between you and the hiring agent and the Dutch bank here.

Study it thoroughly
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

peterson76
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Post by peterson76 » Sat, 12 Jun 2010 10:16 pm

That's a very useful link, thanks a lot !

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