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Terminate before start work but offer letter signed

Tue, 10 May 2016 09:18:09 PM  (Last updated: Wed, 11 May 2016 08:11:38 AM)

Hi i have a problem. i signed the offer letter with company A and suppose to start work on 2/5/2016. However i received a better offer from company B.and i informed company A by email on 28/4/2016 that i unable to join them. Today 10/5/2016 company A called up and inform me that i have to pay one (1) month of salary if not they will take legal action against me.

There is a clause in the offer letter "Should you fail to report to work in your agreed commencement date/any approved extension thereof as per the letter of employment, you shall undertake to compensate the company a sum equivalent to one (1) month of your Basic Salary within seven (7) days from the commencement date/approved extension or reporting date.

Please advise if i need to pay? Thank you.

KL Siew
Wed, 11 May 2016 08:11:38 AM

It is not possible to say whether they will really sue you or not. Just wait and see.

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