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Pay in Lieu Reimburse Claim

Tue, 01 May 2012 06:22:20 AM  (Last updated: Wed, 02 May 2012 11:28:02 AM)


First of all, I am sorry if I post on the wrong category.

I have resigned from my previous company and my current company required me to start work earlier but they refuse to pay the notice first. They want me to join the company first and then they will pay the notice period to my previous company. Else, they ask me to pay first and they will reimburse the money. Since my previous company required the payment before my last day, I decided to pay using my money first. For a figure, I pay them 8k, for my 2 months salary, 4k p/m.

The problem now is, after I claim the 8k from my current company, they reimburse the amount together with my 1st month salary, which on the 1st month, my total salary is 8k + 5k = 13k. And that makes me taxed for more than 2k. I believe this is not fair for me as I pay that 8k with my cash, without any tax, but in return they pay me togehter with my salary and the tax is extremely a big amount. Thus, I am not getting my 8k back.

I need an advice from you regarding on this matter, are my company doing the right thing and is there any law to protect me on this issue. Am I covered by the Employment Act? Hope to hear from you soon

KL Siew
Wed, 02 May 2012 11:28:01 AM

Well, fair or not fair, tax has to be paid. Consult a lawyer for advice whether the company has done anything wrong.

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