Question:
I have attend two trainings which my current company has requested I attend. I signed a bond for the first training while I did not endorse any contract for second training (although in fairness, HR did tell me there would be a bond). I recently tendered, and they sent me a notice saying that they will be recovering damages associated with the bonds, and these will be deducted from my salaries, leaving me with almost nothing for the next 2 months (I am on 2 months notice).
My questions are:-
1. I am disputing the second bond. I was under the impression that I will be "charged" at company's cost, e.g. after any government funding etc. but they are charging me at the full rate of the course. Since I did not endorse any contract for the second bond, am I liable at all?
Any verbal agreement can be considered as an agreement. However, I believe you can argue on this matter as there is not written agreement signed especially on the terms and conditions of the agreement and also you may not know whether are there any hidden clause which you are not aware of.
What so amount they deduct, company cannot deduct more than 50% of your salary. You can complain to MOM if they do so.
2. Is my company even allowed to deduct these damages from my salary?
The company can only deduct the salary under the authorized deduction as spelt under employment act Part III clause 27 as follows:
—(1) The following deductions may be made from the salary of an employee:
(a) deductions for absence from work;
(b) deductions for damage to or loss of goods expressly entrusted to an employee for custody or for loss of money for which an employee is required to account, where the damage or loss is directly attributable to his neglect or default;
(c) deductions for the actual cost of meals supplied by the employer at the request of the employee;
(d) deductions for house accommodation supplied by the employer;
(e) deductions for such amenities and services supplied by the employer as the Commissioner may authorise;
(f) deductions for recovery of advances or loans or for adjustment of over-payments of salary;
(g) deductions for income tax payable by the employee;
(h) deductions of contributions payable by an employer on behalf of an employee under and in accordance with the provisions of the Central Provident Fund Act;
Cap. 36.
(i) deductions made at the request of the employee for the purpose of a superannuation scheme or provident fund or any other scheme which is lawfully established for the benefit of the employee and is approved by the Commissioner;
(j) deductions made with the written consent of the employee and paid by the employer to any cooperative society registered under any written law for the time being in force in respect of subscriptions, entrance fees, instalments of loans, interest and other dues payable by the employee to such society; and
(k) any other deductions which may be approved from time to time by the Minister.
My opinion is training bond formed a seperated agreement and nothing to do with your employment agreement, I would suggest you to call MOM to file complaint on this matter.
3. I feel this has been unfair to me, especially after the amount of hard work I put into this company. Would I be liable if I leave with immediate effect (e.g. without serving notice? Its not realistic for me to work without 2 months salary).
If you feel that it is an unfair treatment, I would suggest you to report this matter to MOM immediately upon you failed to received the salary after first 7 days.