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Company Withdraw Offered Employment Contract before Work Commencement

Cathleen Chen
Member
Fri, 21 Sep 2012 03:47:46 PM  (Last updated: Fri, 21 Sep 2012 05:03:59 PM)

Dear All,

Due to some company internal issues / business directions, we are unable to employ one of our offered candidate (Employment Agreement already signed) who is supposed to commence work in a month's time.

We have already given him a call to inform about this news and provided him an alternative work position (entirely different job scope) which he had rejected immediately and demanded for an official letter from the Company about this withdrawal.

Questions:

1. What should be the proper procedures for Company to take, withdrawing/voiding employment contract before the job commencement date?

2. How would the 'Termination Notice' Clause (say 2 weeks notice during probation) in a typical Employment Agreement be applied in this case since Commencement Date has not been effected?

3. Will the company be contractually (legally) implicated or has violated Msia Employment Law?

Thanks!

KL Siew
Administrator
Fri, 21 Sep 2012 03:50:52 PM

For such a matter, I would suggest you seek legal advice from a lawyer.

Cathleen Chen
Member
Fri, 21 Sep 2012 04:06:01 PM
Originally posted by KL Siew on Fri, 21 Sep 2012 03:50:52 PM

For such a matter, I would suggest you seek legal advice from a lawyer.

Thanks KL Siew.

I believe none of such senario was mentioned in the Employment Act. However, the suffered party may file for an immediate court action on the contract.

Believe that by informing the other party with an official letter and providing all the assistance to help this candidate to retain his present job with his current employer or helping him to look for another new job is the best that what we can do to resolve this issue amicably / preventing a lawsuit.

KL Siew
Administrator
Fri, 21 Sep 2012 05:03:59 PM

I really can't speculate what action the other party can take, especially when he has resigned from his company in anticipation of the new job. For your suggestion of asking his present employer to retain him, I personally would not do that, it will not be effective. I presume you have spoken to the candidate and I am sure you know what he is thinking.

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