Situation:

I resienged from Company A on August 2006 and accepted an offer from Company B.

Company B gave me an appointment letter saying that my appointment date (i dont know what was the term on the letter) starts 1st November 2006 as i needed 3 months notice from Company A. Company B's MD and I signed on the appointment letter and we both have a copy.

Now half way through October 2006, Company B's MD just announced to their staff(i have a friend working in Company B) that they are going bankrupt and most probably the company won't last until 2007. They are retrenching people and closing down already. I am thinking of asking compensation from Company B.

Reason for asking compensation from Company B:
I resigned from Company A because I thought I have a very good future in Company B. If I were to stay 2 more months in Company A, I'll get my annual bonus and annual increment. I am sacrificing all these to go to Company B and now they tell me that they are going bankrupt???

Company B has yet to notify me on the bankrupt, I got all these information from a friend who is working there.....

Questions:
1. Although I am not yet officially employed by Company B, I have an appointment letter stating that i start on 1st November 2006. If I get a call from them saying I don't have to report to work on that day, do I still get compensation?

2. If I do get compensation, how much am I supposed to get? Or how much am i supposed to request?

3. Is my reason above strong enough to get a compensation from Company B?

What are your opinions?

UPDATES:

The letter of appointment is dated 1st August 2006, commencement date is 1st November 2006......

retyping the Termination part
This post has been edited by lokgotz: Oct 18 2006, 02:11 PM

Compensation on a soon-going-to-bankrupt company? You think they're going compensate non-employee (technically you're not yet their employee as you haven't reported for duty, letter of employment is nothing) ? I'm pretty sure, it's a NO.

Why don't you, yourself give them a call. Who knows that they still need you or something. It's good just to be sure than waiting for their answer.

This post has been edited by c9: Oct 18 2006, 04:02 AM

yhey are going bankrap man what els can u aspect from them...............nothing mate

This post has been edited by kunyit_kampung: Oct 18 2006, 04:22 AM

bankrupt dude! whatelse u can do? compensate? they wont listen lorrr...

Two truth that you have to face:

1. Company B would not compensate you. Why would they? As if they announced the bankrupcy, they are not liable for any obligations including your issue.

2. Company A will not intend to continuously hire you anymore although if you intend to revoke or explain the whole situation.


Good luck



Jinyee

This post has been edited by jinyee80: Oct 18 2006, 06:43 AM

I don't think you can ask compensation from Company B because once they announced bankrupt, they're not liable for any obligations as mentioned by Jinyee. I guess their current staffs will be affected as well and not only you.

Why don't you pull back your resignation letter from Company A and stay in that company for another few years before hunting for a new job ? I'm not sure you work in which company and under what environment but i personally think that it is not a good idea to resign at the end of the year as it is close to anual bonus payout and yearly increment. If you want to do so, you should ask for better offer.

You can't ask for compensation based on what your friend had told you about the bankruptcy of your soon-to-be company. Even if you do ask for it, they could not give you anything because;-

1) You heard from a friend about it and not from them (the company)
2) Bankcruptcy means there are no funds anymore in that company. The only thing they could compensate is their furnitures, or computers.

Unless they personally tell you that they are closing down (a.k.a. going bankrupt), that's a different story.

My advise, start looking for another job and don't wait unless your company want you back

Do not rely on rumours. Call the MD directly and check what is going on. You can check with your current company if you can retract your resignation letter since you are under their headcount until end of the month

1. If the company is retrenching and going to bankrupt, why they still hire u?

2. If u did not sign on the employment letter yet, that means your not thier staff so no compensation.

It would be very sensative to pull back the resign letter. most case, company A ignore your plead.

Try look for new job before the deadline.

Nothing else you could do.

i thought letter of appointment is a contract between me and the company....both parties signed and are bound by the contract......am i right??

I dont know if company A will rehire me or not but i dont think i'll go back there........btw, i left in good accounts.....

their current staff will be receiving termination letters today or tomorrow, so i am expecting a call from the MD either today or tomorrow also....

i cant pull back my resignation from company A as my last day was in september2006.....i resigned from company A because the pay, benefits, job satisfaction is better in company B that i am willing to sacrifice annual bonus and increment...

i will be hearing from the company very soon....they ought to tell me.....if they dont, i turn up for work on 1st November pretending nothing has happened??


My friend told the MD that i have yet to join......the md responded that he will call me......so i am waiting for his call......

the reason i am not calling him is because bankrupcy of a company is a confidential thing.....i think.....and if i call them out of a sudden saying," i heard u guys closing down soon....how about me?", he'll be surprised where i got the information......and i think it's a bit rude also.....

i am no longer under the headcount of Company A......my last day was 30th September 2006....


when they hired me on August, they are still ok.....something happened right after they hired me that leads to bankrupt....

I singed on the employment letter....but the employment letter stated that i start work on 1st november....

I don't know anything about your contract but I think there's a clause stating that they could terminate your employment within 24 hours with valid reason(s). So, they might use that on you. Correct me if I'm wrong.

UPDATES:

The letter of appointment is dated 1st August 2006, commencement date is 1st November 2006......

retyping the Termination part

they didnt say anything abot the 24 hours termination thing....

anyway, i just retyped the termination part of the letter of appointment....updated in 1st post......

Yeah. That's the one. They might exercise that code on you. So becareful.

i think they will....

but that clause says that during probational and after confirmation...

my probational period is 3 months...

if they use that clause on me, i still get 2 weeks "salary" right? since they cant terminate me immediately......i didnt do acts of dishonesty on your part, criminal offences, wilful disobedience and any conduct that is prejudical to the image, interest and business of the Company.

Actually i am hoping to get at least 1 month's salary from them as compensation.......

This post has been edited by lokgotz: Oct 18 2006, 02:23 PM

They will pay 2 weeks worth of salary if they decided to terminate your contract immediately.
OR
You work for 2 weeks upon receiving the contract termination letter.

This same goes to confirmation (or permanent) period. So, it's up to them to pay you or make you work for them for 2 weeks. I think they will go for latter.

This post has been edited by goliath: Oct 18 2006, 02:37 PM

Sorry if I miss out something but according to your appointment letter, your appointment will start effective from 1st November 2006. Unless they gave you an official notice, you are not yet retrenched. So, you have no right (yet) to ask for compensation.

My suggestion:
Sincerely pay a visit or give a call to company B, understand the situation and discuss the options you have.

One thing for sure, if they are going for bankruptcy, you are not getting anything for sure.

Good luck!

During the probationary period, means from 1st Nov onwards when you have started work, the term above applies. Now its not even 1st Nov, and you aren't even within the the probationary period, let alone an employee, they can still terminate you immediately.

Besides, the contract will be null and void if the company is liquidated (or close down)