Employment contract with consultant

[bhauranya]

Hi all,

Am asking on behalf on my friend.

He recently job with a bank1 on consultant payroll, so he signed a contract with a joining date after 2 months.
The consultant has already got the IPA for EP.

After a week he got a direct employment with another bank2 with better pay and benefits.
Now this bank2 is in the process of applying IPA.

He spoke to the consultant and they are asking for 5.5k SGD(one month sal) to break the contract or else they will deal this legally.

Have a few concerns on this.
1) Will the IPA from the bank2 be approved as there is already one IPA approved from the consultant.
2) Does he have to pay the money or there is any other way out. What are the legal obligations if he doesnot pay the money?

Any inputs on these will be greatly appreciated.

Thanks

[Mad Scientist]

I think your friend is screwed BIG TIME, Rolling Stone Way !!

Getting greedy are we ?

Seriously, the devil is in the detail. If he signed the contract , then he is bound by it and the consultant can drag your friend's A** to the court.
If he is overseas, I am not sure on the binding part but if he is here in SG , bingo !! Be prepared to pay .

For the second part, the first employer has to cancel the AIP with MOM in order the second one can be process.

[singaporeflyer]

For the second part, the first employer has to cancel the AIP with MOM in order the second one can be process.

MS,
Legally bonded yes. But still a new employer can apply for a EP and may get is approved even though there in approved IPA with new employer 1.

But employer 2 can surely apply for an EP. No restriction on that.

[bhauranya]

Thanks for your inputs friends
Will suggest my friend to pay the money and get out of it.

[bhauranya]

EP applied by bank2 got rejected stating there is already one IPA issued.

[sundaymorningstaple]

Guess he should have consulted his astrologer, huh.

[Mad Scientist]

But employer 2 can surely apply for an EP. No restriction on that.

SF, I was not sure but OP says it all. You have to get the first employer to cancel b4 the second one can apply

[bhauranya]

Guess he should have consulted his astrologer, huh.

Right here we have "the most" educated grown up man replying to my post again.

COOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOL

[singaporeflyer]

Guess he should have consulted his astrologer, huh.

Right here we have "the most" educated grown up man replying to my post again.

COOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOL

Must add experienced to it as he in this industry for close to 18 years

[sgtrying]

Hi all,

Am asking on behalf on my friend.

He recently job with a bank1 on consultant payroll, so he signed a contract with a joining date after 2 months.
The consultant has already got the IPA for EP.

After a week he got a direct employment with another bank2 with better pay and benefits.
Now this bank2 is in the process of applying IPA.

He spoke to the consultant and they are asking for 5.5k SGD(one month sal) to break the contract or else they will deal this legally.

Have a few concerns on this.
1) Will the IPA from the bank2 be approved as there is already one IPA approved from the consultant.
2) Does he have to pay the money or there is any other way out. What are the legal obligations if he doesnot pay the money?

Any inputs on these will be greatly appreciated.

Thanks

Based on this:

<b>If a new recruit who has signed the Letter of Employment fails to turn up for work</b>

If a new recruit has signed the letter of employment but subsequently informed the employer that he does not intend to start work with the company and failed to turn up on his first day of work, the Employment Act does not apply as the employer-employee relationship has not started.

Hence the employer will not be able to claim notice pay or any compensation under the Employment Act.

If the employer wishes to claim compensation from the recruit, he should pursue a civil claim through his own lawyer.

<b>Confirmation of Employees</b>

There is no provision in the Employment Act on the conditions for the confirmation of an employee in his job. An employee's confirmation will depend on the terms spelt out in the employment contract. The length of an employee's service is calculated from the date on which the employee starts work and not the date of confirmation.

You are in the clear, you didn't start working, so no need to pay your employer. Read this: <b>Hence the employer will not be able to claim notice pay or any compensation under the Employment Act.</b>


But if the employer wishes to claim compensation, MOM won't meddle with it, your employer could pursue claiming compensation as they wish (you know, everyone has a right to be right. It's just unfortunate that Singapore law is not entirely black and white on this. I think the aforementioned MOM Employment Act parameters should be a law, not only confined on MOM policies. So no lawsuit-happy companies can bask in their perceived rights to be right). Read this: <b>If the employer wishes to claim compensation from the recruit, he should pursue a civil claim through his own lawyer.</b>


Hmmm.. Why MOM's <b>Letter of Employment</b> is not worded as <b>Employment Contract</b>? Are they different?

[Mad Scientist]

Hmmm.. Why MOM's <b>Letter of Employment</b> is not worded as <b>Employment Contract</b>? Are they different?

This is absolute nonsense. Employment Contract supersedes Employment Act
The minimum guideline is the Employment Act . If the employer provides more than that, Employment Contracts takes place.
This is totally different from what the current issue with OP as there was no deprivation of employee rights but rather looking for greedier and greener pastures .

In such situations, you must refer to your contract of service. Since the provisions in the Employment Act set the minimum standard, the terms of your contract of service must be at least equal to or more favourable than the provisions in the Act, otherwise the terms that are less favourable will be illegal and invalid.

http://www.lawsociety.org.sg/public/you ... yment.aspx

Employment Act Cap 91 / 91A and Employment Agencies Act Cap 92 is the guideline that needs to be adhere so that the mimimum requirement set by the law on the rights of the employee.

[bhauranya]

Thanks everyone for your comments.
The issue is resolved now, my friend paid a month salary as per the contract to the consultant and came out of it.

I have a question on the similar lines. Unfortunately its my case this time.

Got a direct perm role with a bank:Accepted the offer letter 2 days back.
Bank has applied for IPA.

Today got another offer with bank2 direct perm role,
The position is one level above the first offer.
The bank is comparatively big and well known.
Salary is more by 500$-1k compared to first one.

I read the first offer letter and dint find any clause stating conditions of a individual taking up the offer and then wanting to withdraw.
But again the IPA needs to be taken care off.

Am confused. I know this is need to be sorted out by self, but still i would like to hear your suggestions which could help me to take a decision.

I see two options.
Not to complicate things and go with the first offer as committed.
Second is to find a way out of this complicated situation and go for the second offer.

Please suggest what is the best option. What would you do in this kind of situation?

Thanks.

[aargon]

you signed an agreement for the first offer. That should be the end of it.

tough titties that you got another offer - you shouldnt have have signed the first agreement to begin with if you had doubts on your ability to commit.

issh....

[Strong Eagle]

Thanks everyone for your comments.
The issue is resolved now, my friend paid a month salary as per the contract to the consultant and came out of it.

I have a question on the similar lines. Unfortunately its my case this time.

Got a direct perm role with a bank:Accepted the offer letter 2 days back.
Bank has applied for IPA.

Today got another offer with bank2 direct perm role,
The position is one level above the first offer.
The bank is comparatively big and well known.
Salary is more by 500$-1k compared to first one.

I read the first offer letter and dint find any clause stating conditions of a individual taking up the offer and then wanting to withdraw.
But again the IPA needs to be taken care off.

Am confused. I know this is need to be sorted out by self, but still i would like to hear your suggestions which could help me to take a decision.

I see two options.
Not to complicate things and go with the first offer as committed.
Second is to find a way out of this complicated situation and go for the second offer.

Please suggest what is the best option. What would you do in this kind of situation?

Thanks.

If you haven't signed an employment contract with Bank1, then I doubt you are legally bound. I'd confirm with bank2, tell bank1 you are backing out and to cancel EP appl.

I've got no sympathy for companies in Singapore... they pay next to nothing, treat employees like throw away plasticware, then wonder why there is no loyalty.

[x9200]

This is absolute nonsense. Employment Contract supersedes Employment Act

Normally does not (unless stated otherwise) but this is simply irrelevant as not everything has to be claimed from the Employment Act. Likely it can be claimed as any other damage (if possible to prove) under general civil law statutes.