Employment Contract - Termination Clause

[Show Me The Money]

Hi, My wife came home yesterday with an Employment Contract from her sister who asked if i can take a look over for her...after she had already signed!!!
The contract is for an office admin role at a dental practice and is for a 2 year period.
There is a termination clause which i find alarming, even by Singaporean standards:
If the services of the employee is terminated by the employee during her first two year term she will be required to pay liquidated damages in the sum of (2) months gross salary.
As if this isnt bad enough, she will be charged 10% P/M for any outstanding balance!
ok, she shouldnt have signed this....is there any default clause that MOM have that would override this.

I can see a issue down the track if a staff member is being treated badly, they will be forced to stay on, or pay damages for leaving...doesnt sound right to me

Any suggestions what she should do?

[sundaymorningstaple]

As long as the terms are equal in both directions e.g., resignation or termination then it's a valid contract. Nothing that can be done. Why people don't read and understand their contracts BEFORE signing I'll never know.

However, if the company isn't also required to pay 2 months in lieu of if THEY terminate her, she can break the contract, but I would suggest going to the MOM and having their people see the contract first to verify this.

By Singapore standards? This is mild. There are lots of them with 6 months salary in lieu if they don't finish their contracts.

[Show Me The Money]

Thanks for the advice - i did hear back from MOM after sending them a scan of the Termination Clause. This was their responce:

"Under the employment Act either party can terminate the Employment Contract by serving the notice given in the contract...the terms pertaining to monetary compensation for premature termination is a contractual term and not governed by the Employment Act" MOM suggested i consult a lawer.

Like you said there needs to be consdieration on both sides which are equal to both parties...this looks a bit one sided but not worth the money taking this to a lawyer who will charge more than the disputed sum.

Like you said...read and get advise before you sign!!!