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Tan
26/10/2010 10:32:12
Re: Compesation to the company even I have not join them?

Hi, I have sign an offer letter on 20 Oct, and should report to work on 25 Oct, but I decide not to take the offer and email to notify the company on 23rd Oct.
Pls note that I did not actually submitted my resignation, just email to turn down the offer.

Below are the clause written in the offer letter:

A) PROBATION
You will be required to serve a probationary period of three (3) months during
which time either party may terminate the employment without any reason, given
by either party giving to the other one week’s notice in writing, or the equivalent
of one week’s salary in lieu of notice or, if notice given is short of the one week’s
period, the total amount of salary equivalent to that period by which the notice
given falls short of the one week. Such notice may be given on any working day.

B) TERMINATION
After confirmation, termination of your employment is subject to three month’s
written notice from either side or three month’s salary in lieu of notice. However,
the Company reserves the right to terminate your employment at any time
without giving you any notice or salary in lieu thereof should you guilty of
misconduct, negligence or incompetence. Details of this can be found in the
Employment Act (Act 256) & Regulations of Malaysia.
Should you after signing your acceptance of this Letter of Appointment and prior
to the commencement of your service with the Company, wish to withdraw from
the accepted Appointment, you shall be liable to immediately pay the Company
one month of the salary specified in this contract for failure to honor your
commencement of employment.

Now the company requested me to compesate them 1 month salary instead of 1 week. I inform them that I am willing to work for them for 1 week and will bring them the resignation letter on the first day of work.

They refuse to accept it and not willing to allow me to serve the 1 week notice but asking me to compesate them for the money they put in for advertisement.

FYI, i will only be starting work next month. I am willing to work for them instead of paying the money because i m not affortable to do so.

Can I ignore it? Or is there anything that i can do?
Any consequences to my act?

Really need help, thanks! :(
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busybody
26/10/2010 13:07:11

You NO NEED to pay anything ! Your employment only starts when u report duty and 'clock in'.

1. If the employer say that you are already a staff after signing the offer letter, you can argue whether the company willing to pay you if you took MC between 20 - 24th Oct?

2. Signing the offer letter does not mean that you are already their employee. You are signing because you agreed the term & condition of the agreement which only effective on 25 Oct.
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Tan
27/10/2010 10:03:49
Thank you very much for your reply.
But the company using the TERMINATION clause to request me to pay:

"Should you after signing your acceptance of this Letter of Appointment and prior
to the commencement of your service with the Company, wish to withdraw from
the accepted Appointment, you shall be liable to immediately pay the Company
one month of the salary specified in this contract for failure to honor your
commencement of employment."

Meaning to say prior to my commencement date, if i withdraw from the offer, i still need to say them.

Please help, i m lost. I m seeking advices from gov too.

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Another Tan
28/10/2010 18:07:20
If there is such a clause, then I would think you are liable to pay as indicated.

And since this is a forum, I would also like to take this opportunity to comment that it has sadly become such a rampant practice nowadays for some people to just take up offers without seriously thinking over what they are going into.

Maybe you have a very good reason for changing your mind but do understand and see from the point of the employer. They go through a very tedious process of recruiting which probably includes advertising, vetting through candidates, putting the effort to call and arrange the interview appointment (and in this course, the interviewer actually dedicated and put aside some of their precious time for the interview). After shortlisting the candidate, probably a second round of interview is arranged, otherwise if the employment is confirmed, Appointment Letter is typed, record is put down and lots of other stuff like preparing keys, work station, cards, manuals, etc....is done.

After all these, you can imagine the frustration when the soon-to-be employee suddenly announce that he/she no longer wish to commence work.

Do not misunderstand me as this is not a reprimand response to Tan but just wish to share "the other side of the story" to those who might genuinely not aware of the preparation work done for a new employee.
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