Hi All/HR friends,

I have a simple question on offer letters.
Let’s say a company-X offered you a position with 3K. And there is a liability clauses in the offer letter mentioned if you didn’t turn-up (no-show) on the first day of work, you need to pay back 1 month salary exactly what they offered.

So let’s say you already signed this offer, and if you didn’t turn up on that day (with a rejection letter to the new company), are they eligible to do such thing by asking us to pay?
Do we have any employment law to protect us from this?

Because I think this is not so fair. Please help and give some advice!

Thanks

i think the clause is to scare candidate only.

but if he/she signed the employment letter which such condition ... then the employer might win.

Not fair to the employer too mah. I think it's suppose to be if you don't give prior notice say a month before quitting, then you have to pay back.

will the employer go waste time sue those candidates ?

and is the signature can be used to sue the candidates ?

If you have signed the agreement with the clause stated as such; then that binds you to a contract that you understand and fully agree to the terms. Thus, there's no such thing of calling it as unfair (unless in certain conditions where the clause is totally bollocks and illegal - then you have an argument).

Rather than just not showing; why not settle it nice and professionally by notifying them in writing and offering your apologies or regrets on the sudden change in decision?

To say that it's not fair for such a clause to be imposed on a new employee's contract wouldn't sound too convincing as companies also put a lot of effort and money as well in setting up job advertisement, arranging for interviews and making preparations for new staffs.

Business is business. How many ~!@#$%^&* times do I have to advice people not to sign any documents before making a sound decision??!! Sometimes it makes me wonder, why people would put themselves in a legal complication.

Once you've signed the Contract of Service, you are bounded with terms as stipulated. However, there's no end to it. As mentioned by "PsyCHZZZ", there's a backdoor (Not DotA term of "backdoor") option. Do it in a professional manner and keep your fingers crossed.

Regards, Joey

Hi All, thanks for your prompt responses.
Yes - I meant to be rejecting in a appropriate manner - let's say a few weeks before the commencing date.

Sometimes, sound decision is firm but you never know what your current company going to counter-offer. So sometimes, it is still debatable.

I guess that's why so many companies HR put such clauses in their offer.

Good for you. Are you sure about the counter offer? You sounded optimistic about that though. What's the catch?

Regards, Joey

Anyone mind if I create another thread titled " Are graduates nowadays really clueless and hapless that they may get lost the moment you turn your head around??" ?

This post has been edited by depster666: Sep 7 2009, 01:21 PM

Hahaha!! I am not a fresh graduate nor I am the one that really in this situation

Take it easy, but I just wanted to know about this information. There is no right or wrong, just contribute if you have any real situation/experiences from friends or yourself on this. Thanks

My advice: DO NOT simply sign ANY DOCUMENT that you DO NOT UNDERSTAND.

Regards, Joey

p.s: You might be ended up in an isolated island for no good reason.

Let make it simple here.

You signed the contract so you are legally bind to do what is in the contract regardless.

You broke the contract, the company may or may not sue you, is up to them to decide but they have the right to do so and you may lose and may have to pay more than what's initially stated in the contract.

You broke the contract, your now to be company may 'one day' decide to call up your old company and if found out, may mean bad reputation in your now company. If you decide to apply to a better company, that company may ask testimonials from your old one to clarify the resume.

So conclusion, just pay up or else you may end up worse than you think since you DID sign the contract. Just take it as a lesson to firmly not sign anything unless you are sure of it.

Here's a Chinese proverb to back you up. "If you don't want anyone to know, don't do it"

Regards, Joey

once u signed a contract, ur legally bound by it.

you have to pay what was stated in the contract. or you can work something out outside of the court. because i doubt any party wants to go through the hassle of court proceedings.

i suggest u pay the amount stated in the clause of the contract or prepare to face legal action.

it is FAIR.. very fair. both u and ur company had understood the contract when u signed it.

and sorry to tell u but in malaysia (if u are here anyways), the employee rights are very bad.

Let's go for Industrial Court then. Time to grab popcorn and a can of Coke. It's troublesome but I sure enjoy it.

Regards, Joey

p.s: I've been attending a few Court cases and it feels good at times. As the Chinese saying goes, "kill one to warn a hundred" is applicable to your case.

This post has been edited by Joey Christensen: Sep 7 2009, 02:04 PM

a signature is a signature. you can complicate things by not doing what was agreed to the document you have SIGNED.

You signed, you leave, they MIGHT sue, depending on how you settle it.

If you don't turn up, obviously they will require an explanation, but if you are going to turn down the job, do it before the first, polite, if they still sue you, its something you can't run away from, cause you signed!

So it depends on luck too.

TS, read up on the legal concept of unconscionable contracts. Essentially, contracts which are heavily biased towards one party (typically the party with more bargaining power or resources/knowledge eg. employer vs employee, bank vs customer etc), the contract may not be enforceable as the consideration put forward by one party may not be of reasonable value compared to the consideration from the other party.

In this case, I feel that demanding a penalty of 3K is not reasonable compared to the simple act of promising you the job. This is especially when the contract is one-sided ie. does not say that the company must pay you 3K if they subsequently terminate the offer before you start work.

In addition, when anyone wants to demand a penalty or damages under contract, those damages are limited by the actual amount of loss or injury sustained. The basic concept is that the aggrieved party cannot be allowed to PROFIT from the damages awarded, but merely to the extent that they are RECOMPENSED. In this case, the company has to show that they have somehow lost 3K or more, by your simple act of not showing up. Considering the fact that the company has not actually spent a cent on you, I think their case is weak. And if they offered the job to the next shortlisted candidate (after your no-show) and he accepted, then there is virtually no loss at all.

This post has been edited by seantang: Sep 7 2009, 09:46 PM

think and consider carefully before you sign it. dun sign the offer letter if you do not wan the job.
if everything is stated on the offer letter and you sign for it, you should take the responsibility as well.
its fair.