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Vague Termination Terms

Wed, 13 Aug 2014 09:12:32 PM  (Last updated: Thu, 14 Aug 2014 06:12:55 PM)


I need some advice on a very vague terms of termination in my letter of appointment. It says,

"Your employment with the company may be terminated by either employee or the company, by giving three (3) months' notice in writing, without assigning any reason, to the other or by the company alternatively giving you payment in lieu of such notice. You may not set off any unexpired annual leave against the notice period."

The company expects me to pay back the 3 month salary if I want an early release (24 hr notice). BTW, I am still on probation and have worked one month only. My salary range doesn't qualify for protection under the Employment Act too.

I went to the labor office to get some advice and the officer on duty said that the terms itself is not clear, she said that there's no clear statement of the employee having to pay back any form of salary- but instead the company has to pay the employee if they terminate/fire the employee. Is she correct on this? I've read it many times and am still unsure. Please advise me ASAP.

Also I got one more question, if I send in my resignation letter and they took it, but then tell me they never accepted it-- is it wrong on their part? Because they took my letter, does that mean they automatically accept it because if they were to reject it, they won't keep it in the first place?

Any help would be appreciated, thank you.

KL Siew
Thu, 14 Aug 2014 10:55:14 AM

The wording may not be perfect but it looks clear to me that the party must either give 3 months rewritten notice or pay 3 months salary in lieu if no notice was given.

Thu, 14 Aug 2014 11:27:54 AM

Hi Siew,

Thx for your advice. I also have another scenario:

If the employee has breached the contract and has been notified of it (because of misconduct), does that mean they are immediately terminated and therefore the contract terminates with it?

Cause there is one more part that is quite blur related to the scenario above:

"If an employee commits a breach of any of the terms in this Contract and where such breach is capable of remedy, fail to remedy such breach within the time period reasonably stipulated by the company in writing, then the cmpany shall be entitled to terminate your employment without notice or payment in lieu of notice, whereupon this Contract shall terminate, without prejudice, however, to any of the company’s antecedent rights herein.”

Will need your advice on this too. Thank you.

KL Siew
Thu, 14 Aug 2014 06:12:55 PM

If there is misconduct, a domestic inquiry should be held first before making any decision including dismissal.Section 14 of the EA may of help.

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