SINGAPORE: After backing out of a job offer from a multinational corporation (MNC), a job seeker is now being charged a steep penalty equivalent to one month’s salary.
On Wednesday (April 23), she took to the r/askSingapore forum to seek advice from her fellow Singaporeans. In her post, she explained that when she accepted the offer from the MNC, she was aware that there was a “no-show” clause in the contract, which states that if she terminates the offer after signing, she would have to pay a fee equal to one month’s salary.
She also mentioned that she only decided to sign the contract, despite having reservations, because the company pressured her (she was informed that she only had 24 hours to make a decision) and because she badly needed a job.
The very next day, however, she realised that she had made a mistake when another company offered her a position with far better conditions.
She said, “I received a contract from another company that was a lot better, and I decided to take it. I withdrew my acceptance from the MNC just one working day after accepting it. Despite this, the MNC claims they are contractually entitled to demand the no-show penalty and would like me to pay one month’s salary.”
In a state of panic, she turned to the forum, asking if there was any way out of the situation.
“There’s no recourse under the employment act.”
In the comments, many Singaporean Redditors advised the job seeker to “ignore” the company’s demands.
One Redditor said, “Just don’t pay. Ignore. Get blacklisted by company A. It’s fine. But if you decide to pay, just take it as an opportunity cost.”
Another commented, “Nah, not enforceable. There are still rules to protect employees. Companies cannot simply add clauses as and when they like it. They still have to follow guidelines.”
A third stated, “You could claim you signed under duress as they coerced you into making a hasty decision, preying on your lack of employment and need for money, by setting a 24-hour deadline with the threat of the offer disappearing. This should be more than enough to have them tear up the contract.”
A fourth added, “There’s no recourse under the employment act; they will have to go through a private action. Doubt they would spend the time or money to do it. And since it’s one day, they realistically can’t really prove any real loss anyway.”
According to the Ministry of Manpower (MoM), if a newly hired employee signs a contract but does not show up for work, the employer cannot claim notice pay or any other type of compensation under the Employment Claims Act, as the employee has not started their duties.
Featured image by freepik (for illustration purposes only)