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Training Bond & Termination

Kabil
Member
Tue, 27 Oct 2015 05:45:27 PM  (Last updated: Wed, 28 Oct 2015 05:09:06 PM)

Hi There,

I have one employee who recently got terminated due to personal integrity hence he admitted that he provide fake documentation to HR as supporting documents. His basic salary RM 2200, and he join the company about 1.5 months

In his contract stated below clause:

TRAINING EMPLOYMENT BOND

The Employee acknowledges that they will undergo a Graduate Employability Program and substantial costs have been invested on him for training him specifically for effectively handling the job responsibilities and, any discontinuance of the employment before expiry of the six (6) months term, would unfairly prejudice the Company, and, as such, the Employee undertakes not to leave the employment with the Company, for any reason whatever, within the six (6) months from the date he/she commences work with the Company as stated in the Letter of Employment.  

In case the Employee, for any reason, leaves the employment of the Company before the expiry of the six (6) months term, then he/she shall forthwith pay a sum of RM6,000/- being the indemnification of the cost of the Graduate Employability Program to the Company in order to defray the actual cost of program. The Employee undertakes not to dispute the amount, and shall pay the amount, before requesting for formal relieving order from the Company.

However, if the Employee leave the employment of the Company due to discontinuation of Project contract for whatever reason and at any point of time or non-extension of Project contract by the Company’s Client where you are deployed or the Company is insolvent, this clause shall not apply to the Employee.

Question

  1. Can we off set his earned salary and deduct from his bond and advise him to pay remaining balance of the bond? The company proposed 3 months installment but employee did not agree on the payment terms.
  2. As employee, can he take action against the company under Employment Act 1955 clause 24 & 31?

Thank You

KL Siew
Administrator
Wed, 28 Oct 2015 01:55:54 PM

1. That clause does not seem to say he also got to pay even when getting sacked.

2. He may bring the matter up with the Industrial Relations Department for wrongful dismissal. You just wait and see if he is going to take action against the company. That is his right.

Kabil
Member
Wed, 28 Oct 2015 02:00:26 PM
Originally posted by KL Siew on Wed, 28 Oct 2015 01:55:54 PM

1. That clause does not seem to say he also got to pay even when getting sacked.

2. He may bring the matter up with the Industrial Relations Department for wrongful dismissal. You just wait and see if he is going to take action against the company. That is his right.

Hi,

What do you mean by wrongful dismissal? He was terminated due to personal integrity hence he provide fake documentation from the hospital and hospital already verify the docmuentation.

Thank You

KL Siew
Administrator
Wed, 28 Oct 2015 05:09:06 PM

I don't know whether you have follow the proper procedure to terminate his service. If there is misconduct, the proper thing to do is to hold a domestic inquiry first. Please be guided by Section 14 of the Employment Act for future reference. 
 

Since he has already been terminated from service, there is nothing much to do now.

  This topic is closed