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18/05/2011 11:28:28
Re: Training bond

My nephew just join a company. The company want him to sign an agreement by the term "training bond". The basic info as below:-

Basic : RM 1800 but is manual worker (covered by EA)
Training period : 6 month
The training bond stated like this :-
Every month deduct RM 200 from basic up to 6 month (Total RM 1200). The money will return to the employee after the 6 month (the 7th month). If the employee resign or terminate by company, the money will not return to the employee.

*The above statement already been summaries

Is this kind of contract valid? As i know EA can't deduct the employee salary as training fee.

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KL Siew
18/05/2011 16:07:21
Looks like the employer has chosen a messy way to do things. All deductions are governed by Section 24 of the Employment Act. Subsection (7) may be applicable if it has to go by the letterss of the law.
However, your nephew can use his discretion whether he wants to kick up a farce over it or not. If he does not want to sign, he may not get his job.
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18/05/2011 16:30:50
The company is a government company (big company). It is very surprise that they not following the rules.

Anyway thank a lot.
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