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resignation compensation in the probation extension period

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zelovehit
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resignation compensation in the probation extension period

Postby zelovehit » Wed, 04 Aug 2010 11:01 pm

employement contract clause:
5.1 your probation period will be 3 months.The company may extend the probation period at its sole discretion upon assement of you role and performance.
10.2 if you terminate the contract employment before it expires,you will be liable to make a compensation fee equivalent to 2 months basic salary to the company.

I'm working as a civil engineer in the company for more than 3 months,yet haven't received confirmation from HR.HR informed me through the phone that the company was dissatisfied with my poor performance,thus extend the probation period.If I'm can not improve myself in a short time,company may sent me back to China in the next month.

I was deeply depressed by HR's warning,and made a prompt decision-tender my resignation letter before the company fired me.The boss soon approved,and asked me to liase with the HR department to finish the resignation procedure.

Now the HR aske me to pay for 2-month salary and book the flight ticket back to China before 15 Aug.They argued that company prolonged the probation period,yet I'm still under the clause of employment contract.

I'm confused and so worried, the company is unwilling to confirm me,only verbally informed me probation period is prolonged at its per discretion,after I tendering my resignation application,do I really need to pay the 2-month-salary resignation compensation?
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Today the HR informed me to work for 2 more months for free in lieu of the 2-month-salary resignation compensation since I can not afford the money.
Since I haven't received any offcial document about the probation period extension from HR,they just verbally informed me , can I deemed that my employment contract terminated automatically?If I choose to fly back to China without their consent just inform the company my decision through email,can they blacklist in the MOM?
Last edited by zelovehit on Thu, 05 Aug 2010 12:47 pm, edited 3 times in total.

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singaporeflyer
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Re: resignation compensation in the probation extension peri

Postby singaporeflyer » Thu, 05 Aug 2010 10:44 am

zelovehit wrote:employement contract clause:
5.1 your probation period will be 3 months.The company may extend the probation period at its sole discretion upon assement of you role and performance.
10.2 if you terminate the contract employment before it expires,you will be liable to make a compensation fee equivalent to 2 months basic salary to the company.

I'm working as a civil engineer in the company for more than 3 months,yet haven't received confirmation from HR.HR informed me through the phone that the company was dissatisfied with my poor performance,thus extend the probation period.If I'm can not improve myself in a short time,company may sent me back to China in the next month.

I was deeply depressed by HR's warning,and made a prompt decision-tender my resignation letter before the company fired me.The boss soon approved,and asked me to liase with the HR department to finish the resignation procedure.

Now the HR aske me to pay for 2-month salary and book the flight ticket back to China before 15 Aug.They argued that company prolonged the probation period,yet I'm still under the clause of employment contract.

I'm confused and so worried, the company is unwilling to confirm me,only verbally informed me probation period is prolonged at its per discretion,after I tendering my resignation application,do I really need to pay the 2-month-salary resignation compensation?


If I am not wrong you are still bound by the contract terms of the company. Meaning that you will have to serve a 2 months notice period or pay 2 months salary to them.

Ideally it should be like you resigned and work in the company for the notice period of 2 months.

If you are ready to work for 2 more months after resignation the company should not ask for the pay back for the notice period.

But if you say you want to go early before the 2 months notice then it is the discretion of the company whether to allow you to leave immediately(since you didn't do well as per them) without any compensation or to collect a compensation from you

Your options are

1. Serve the 2 months notice that they are asking
2. Request them politely to waive off the notice period compensation (This is just a request)
3. If you want to leave immediately then pay the 2 months compensation to the company

If they force you to leave before 2 months, then they are not supposed to ask compensation money from you when you are ready to serve the notice period with them

Good Luck !

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sundaymorningstaple
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Re: resignation compensation in the probation extension peri

Postby sundaymorningstaple » Thu, 05 Aug 2010 11:20 am

This one is interesting. However, before anything can be really said, a little more information is required. Couple of facts to note.....

In OP's original post, the quoted portion of the employment contract doesn't indicate any terms for resignation. Only for premature termination of the contract by the employee

The contract does not indicate that the probation can be verbal or must be in writing. As an example, our contracts also state probation will be 3 months, but we do not confirm in writing, instead it is stated that "you are automatically confirmed after 90 days unless you receive a written notice of an extension of probation".

The employee does not indicate his salary rate and as he is a PRC he's probably being ripped off. However, as he is a Civil Engineer, he has a supervisory position so does not come under The Employment Act coverage even if his salary is less than $2000/mo.

So, if, in fact the contract is written as noted, then the OP will have to pay the two months salary in in lieu of finishing his contract. This is where SF and I differ. As notice is not provided for, but only a contract completion penalty, I don't believe the OP has a way out. Because he is not covered under the Employment Act, he cannot take it to MOM either. His only recourse is in civil court and unfortunately, if he signed the contract without reading or understanding it, then he has no recourse but to pay it. I would imagine that the Employer is also illegally holding his passport as well so he cannot do a runner. Put's OP between a rock & a hard place.

singaporeflyer wrote:
zelovehit wrote:employement contract clause:
5.1 your probation period will be 3 months.The company may extend the probation period at its sole discretion upon assement of you role and performance.
10.2 if you terminate the contract employment before it expires,you will be liable to make a compensation fee equivalent to 2 months basic salary to the company.

I'm working as a civil engineer in the company for more than 3 months,yet haven't received confirmation from HR.HR informed me through the phone that the company was dissatisfied with my poor performance,thus extend the probation period.If I'm can not improve myself in a short time,company may sent me back to China in the next month.

I was deeply depressed by HR's warning,and made a prompt decision-tender my resignation letter before the company fired me.The boss soon approved,and asked me to liase with the HR department to finish the resignation procedure.

Now the HR aske me to pay for 2-month salary and book the flight ticket back to China before 15 Aug.They argued that company prolonged the probation period,yet I'm still under the clause of employment contract.

I'm confused and so worried, the company is unwilling to confirm me,only verbally informed me probation period is prolonged at its per discretion,after I tendering my resignation application,do I really need to pay the 2-month-salary resignation compensation?


If I am not wrong you are still bound by the contract terms of the company. Meaning that you will have to serve a 2 months notice period or pay 2 months salary to them.

Ideally it should be like you resigned and work in the company for the notice period of 2 months.

If you are ready to work for 2 more months after resignation the company should not ask for the pay back for the notice period.

But if you say you want to go early before the 2 months notice then it is the discretion of the company whether to allow you to leave immediately(since you didn't do well as per them) without any compensation or to collect a compensation from you

Your options are

1. Serve the 2 months notice that they are asking
2. Request them politely to waive off the notice period compensation (This is just a request)
3. If you want to leave immediately then pay the 2 months compensation to the company

If they force you to leave before 2 months, then they are not supposed to ask compensation money from you when you are ready to serve the notice period with them

Good Luck !

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singaporeflyer
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Re: resignation compensation in the probation extension peri

Postby singaporeflyer » Thu, 05 Aug 2010 11:26 am

sundaymorningstaple wrote:This one is interesting. However, before anything can be really said, a little more information is required. Couple of facts to note.....

In OP's original post, the quoted portion of the employment contract doesn't indicate any terms for resignation. Only for premature termination of the contract by the employee

The contract does not indicate that the probation can be verbal or must be in writing. As an example, our contracts also state probation will be 3 months, but we do not confirm in writing, instead it is stated that "you are automatically confirmed after 90 days unless you receive a written notice of an extension of probation".

The employee does not indicate his salary rate and as he is a PRC he's probably being ripped off. However, as he is a Civil Engineer, he has a supervisory position so does not come under The Employment Act coverage even if his salary is less than $2000/mo.

So, if, in fact the contract is written as noted, then the OP will have to pay the two months salary in in lieu of finishing his contract. This is where SF and I differ. As notice is not provided for, but only a contract completion penalty, I don't believe the OP has a way out. Because he is not covered under the Employment Act, he cannot take it to MOM either. His only recourse is in civil court and unfortunately, if he signed the contract without reading or understanding it, then he has no recourse but to pay it. I would imagine that the Employer is also illegally holding his passport as well so he cannot do a runner. Put's OP between a rock & a hard place.

singaporeflyer wrote:
zelovehit wrote:employement contract clause:
5.1 your probation period will be 3 months.The company may extend the probation period at its sole discretion upon assement of you role and performance.
10.2 if you terminate the contract employment before it expires,you will be liable to make a compensation fee equivalent to 2 months basic salary to the company.

I'm working as a civil engineer in the company for more than 3 months,yet haven't received confirmation from HR.HR informed me through the phone that the company was dissatisfied with my poor performance,thus extend the probation period.If I'm can not improve myself in a short time,company may sent me back to China in the next month.

I was deeply depressed by HR's warning,and made a prompt decision-tender my resignation letter before the company fired me.The boss soon approved,and asked me to liase with the HR department to finish the resignation procedure.

Now the HR aske me to pay for 2-month salary and book the flight ticket back to China before 15 Aug.They argued that company prolonged the probation period,yet I'm still under the clause of employment contract.

I'm confused and so worried, the company is unwilling to confirm me,only verbally informed me probation period is prolonged at its per discretion,after I tendering my resignation application,do I really need to pay the 2-month-salary resignation compensation?


If I am not wrong you are still bound by the contract terms of the company. Meaning that you will have to serve a 2 months notice period or pay 2 months salary to them.

Ideally it should be like you resigned and work in the company for the notice period of 2 months.

If you are ready to work for 2 more months after resignation the company should not ask for the pay back for the notice period.

But if you say you want to go early before the 2 months notice then it is the discretion of the company whether to allow you to leave immediately(since you didn't do well as per them) without any compensation or to collect a compensation from you

Your options are

1. Serve the 2 months notice that they are asking
2. Request them politely to waive off the notice period compensation (This is just a request)
3. If you want to leave immediately then pay the 2 months compensation to the company

If they force you to leave before 2 months, then they are not supposed to ask compensation money from you when you are ready to serve the notice period with them

Good Luck !


SMS the OP has not given the full contents of the letter. My guess is there might be a clause saying that either party can terminate the contract earlier by giving X months notice? May be ? Not sure. Just my 2 cents.

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sundaymorningstaple
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Postby sundaymorningstaple » Thu, 05 Aug 2010 11:47 am

Having seen my share of employment contracts here (18 years in HR/Recruitment) and the way some companies write their contracts, I would like to hope you are right, but somehow, in my gut, I know what has been done as I've seen those kinds of contracts before. They bring in PRC's, Burmese and even in some cases, Filipinos (but not as often as they are more proficient in English) and rake 'em over the coals as they know they don't have a lot of options in their own countries and cannot believe shiny Singapore would screw them. However, too many cases have been up in the courts about the mistreatment of workers to believe otherwise.


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