Hi all, I need some insights here.

Around 1 year ago, I joined a new company - lets call it ABC sdn bhd.
As this company pays for the certs and training needed to do my job, I was asked to sign a bond with ABC for 3 years, amounting to about ~RM30k.

Half a year later, the company spun off and sold my division to another company, so now we are under a new company/ entity.

1. I was never asked to sign a new bond under new company. So if I want to leave the company now, is this bond still legally binding? Am I legally required to pay it back?
2. Any tips on how to negotiate with bosses if they brought this up? I hoped it doesn't turn ugly or burn any bridges in the end.

And no, the new company is not willing to buy me out of this bond, but I really want the new job.

Do you have new employment letter under the new company?

Not yet, this is a theoretical question.

I think if the new spin off has a new employment letter, and the old one ceases to be valid, then only you may have potential to avoid the bond tenure. Disclaimer : IANAL

1. even it sold off to another company, unless there a new contract the term and condition in your previous employment letter still applied including those the bond that was carried over

This is because your are still employed even the company ownership changed hand and your salary is still being paid out normally


2. Bond are legally binding especiall company want return of their investment

the two way is to nego a lower bond breaking repayment or if you are really lucky, the new boss may forgo it when the topic come out but it must be in B&W

U want a company to come find you back for bond breaking without B&W especially when they over active HR or legal department

If they still pay u gaji as per the contract..i think still valid.

During the acquisition by the new company, did you sign anything to be continually employed by the new employer?
If not mistaken the type of acquisition would differentiate if new company takes everything as is, existing contracts, liabilities and all or it was an asset purchase hence employees only continue working if they agree (which they'd need your agreement, hence the signatory.)

If it was the former and everything else is still the same the bond should still be valid as is.
If something changed then you need to get clarification on everything between you & the new employer, including your existing bond.
This usually means renegotiation of existing terms, not full invalidation of whatever running agreement between the two of you.

If you really really want to go to the new company just pay the bond remainder.
You might think it's ill-advised but that's why they (the previous company) bonded you in the first place, to ensure they get proper returns on their investment on you.


p.s. Kinda talking out of my ass, best to go asklegal / labor office / industrial court.

you need to be very accurate about the structure of the sale of your division

was the shares of the original company that employed you sold or just the assets and liabilities sold.

this is cos the employers are not considered as part of the assets and liabilities and you must resign from your previous company and sign a new employment contract with the new company.

you will have to see what are the terms of your new contracts


if only the equity or shares of the original company that employed you was sold, then you remain bound by the original contracts as there is no change in the company and only the shareholders change that does not concern you.

do you know for 100% certainty which category do you fall under

Sorry unfortunately I don't know. I just know from the sale until now, I was not asked to re-sign any documents or new employee agreement. But we are still in the process of transition to new email address, employee benefits, etc.

There is no way the legal and top management are ever gonna let us see the T&C of the sale yah...that was in US and we small potato surely don't have access.

how long has it been since the sale was completed

did you try to use Google or other sources about the company 7 buyer that bought your company.

it's odd cos normally for sale of assets, employees normally sign new contracts few days before the sale is due to be completed cos it will be one of the closing conditions

I think the sale was completed around june last year. that's when we start to get all the transition process information.

You say hypothetical situation, then say the company sold last year. Which is it?

Anyway, your payslip coming under the old company name, or new company name? If old company, only the equity of the old company was sold, and your bond is still valid. If payslip under new company name, then the bond may be invalidated.

Lol sorry. The company division sold is a fact.

Theoretical question as in - IF I really going to perform this job change.

Payslip is outsourced to third party payroll so now it still displays old company name.

This post has been edited by RavagerX: Jan 17 2025, 04:32 PM

So I think your bond contract is still valid right now should you want to change to a new company. As for how to nullify it... sorry la, I can wish you good luck only