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Termination of Employment before start work but after sign offer letter

Sat, 24 Oct 2009 12:12:45 PM  (Last updated: Fri, 30 Oct 2009 12:23:21 PM)

Hi, good day.

I'm dropping this on my friend behalf. She's currently working at T company which requires 2months notice for resignation. She's just got an offer from M company which can only wait her for 1month notice and she agree and signed the offer letter and will compensate her T company for another 1month due to short of notice. In the M offer letter it stated that she will need to compensate the company for 1month if she failed to turn up to work on the 1st working day which is 19 Nov 09. She signed the offer letter on 5 Oct 09 and the M company HR requires her to attend work few days to learned up the things before the current office staff she's replacing left before she start work. Up to today she had attend 4days work with the M company.

However, she got a better offer from another company which offer a better pay and career prospect which she wish to accept and she already signed the letter offer on 19 Nov 09.

My question is:

1. Do she need to compensate the company M for 1month if she didn't turned up to work on 19 Nov 09? Do her previous attend to work few days to learn up the work from the going to resign staff consider she had started work eventhough it did not stated in the offer letter?

2. If she called back the company M and inform them that she wish to reject their offer now, what consequence do she need to bear? 

Please do reply me soonest as possible. Thank you.

KL Siew
Sat, 24 Oct 2009 01:31:23 PM

Honestly, I am not sure how valid or binding is that clause demanding 1 month's compensation for failing to take up the job. Tell your friend to make up her mind what she thinks is best for her. If she really does not want to work for M, just tell them. Don't pay up until and unless some authority orders her to do so.

HS Gan
Thu, 29 Oct 2009 11:45:26 PM

Please help. This is the last sentences in the Letter Offer, is it really valid?

"If the above terms and conditions of employment are agreeable by you, kindly indicate your agreement to the above by signing on the duplicate copy of this letter and returning the same to us. This letter, when signed by you, will constitute a binding contract. "


KL Siew
Fri, 30 Oct 2009 12:23:21 PM

The important things are those terms and conditions in the offer letter. Are they OK? If not OK, don't sign. It may be hard to turn around to say the last clause is not valid.

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