2years Bond Contract

Hi everyone,

I need to seek help :) no blame please, love and understanding for everyone :)

I am on a bond contract for 2 years. I am direct hire, I did not go under agency nor any training, the company did not provided for my education either, just a direct hire.

So basically, I am on a bonded contract for 2years and as stated on my contrac, if I will be terminating my contract I need to pay for 1month salary for penalty, I am not yet a confirmed staff, I am under probationary just had my 1st month last 3rd of Aug.

Please help to enlighten me if I really need to pay for the penalty or any other options you can give.

It is just so stressful work that I cannot handle..
Seems like everything I do is wrong, always go out late without OT pay as stated in my contract, I usually the one who close the company doors, turn off the lights cause usually and most ofthe time Me and my colleague stay late in the office to finish all my boss' ad hoc and requests even my tasks, I always feel nervous even when I'm in a bus going to work, whenever I see my boss' name popped on my phone.  Waah.. seems giving up everyday.. it's always a day of survival.

I fear more cause the colleague who is training me is leaving soon, now rendering her resignation, my boss' attention will always be with me. We are only 4 in the department/room. I really wanted to go....

Thanks in advance.

Sorry to hear your case and understand your situation well. Sometimes we go through this process as corporate world is not the same as we expect. But as you said, you are mentally exhausted and in a position where you can't take up further.

In this case, did you decide what to do next? I mean do you think of returning your home country, if yes then fair enough. If no, then did you get any job or if not then chances are there that once you put your paper then the company has rights to ask you pay the one month salary (if they have already released your salary), in that situation you must be prepared to pay the salary as well as income tax, if any. Without clearing both, if you leave Singapore then there is a high possibility that the employer will complain to MoM and IRAS will be flagged your case to ICA and MoM for their record.

Try to negotiate if you tell the situation to your hiring manager. If there is no solution (as per your message), then better face the above hurdle and be prepared for that. Once employer cancels your work pass, you have 30 days to settle the things before you leave Singapore (you may go out for 5 days then come back to get additional 30 days stay - subject to immigration officer's approval). Good luck

Hi Surya,

Thanks for your help. I understand that I really need to pay. I am also thinking if they will be approving my resignation as my other colleague ia now rendering her resignation and will be leaving soon..

Someone told me to check with MoM as I was a direct hire and the company did not spend anything to get me like they did not pay for my education, training etc.
So I called MoM just this week, and the person said that it is not mandatory for me to pay the 1month salary, I have an option to render 1month service instead of paying the salary penalty fee.
The statement in my contract says "Pre Termination of this contract held the contractor (me) liable to pay 1month salary penalty fee". There is no statement says OR RENDER SERVICE OF 1MONTH.

Upon searching at the MoM website in Terminating Fixed Contract, it says that  "as long as they serve the required notice stated in their contract, or make payment in lieu of notice.

If a notice period is not specified in the contract, then it should be aligned to the length of service."

In my case, notice is not stated in my contract only penalty fee is stated. And I am in a bond contract, as the MoM personnel told me over thr phone, payment is not mandatory I have the option yo serve my notice.

Do you think the MoM statement is applicable in my situation? Though I am in a Bond contract.

Thank you.

MoM is not the party signed the contract. It was between you and the employer. If the agreement says that you have to pay one month salary then you have to pay. MoM has no role in this situation. Here, most of the cases, employer hires the employees directly & doesn't spend money on education and based on the agreement both parties have to follow. You should have raised this question at the time of signing the contract.

So, just mentally prepared that you will work one month free for your employer if you put the resignation paper beginning of the month. Good luck

Thank you surya,

Also, If I pay I don't need to render right? As it is not indicated in my contract? Or still need?

Employee rights are weak in Singapore.
Anything you see on MoM's webpage applies only to people covered by the Employment Act (see https://www.mom.gov.sg/employment-pract … oyment-act), which most probably you are not (but please check this!).
For all others, the only valid rules are those written in the employment contract.
In your case it says when terminating within the two years contract duration, you have to pay one month salary as penalty. (It might say, in another clause, that you have to serve a certain notice period - typically one month. If so, you'd have to serve one month AND pay a month penalty.) These are valid clauses, as far as I know (you might want to consult a lawyer to confirm this), so you will have to follow this.
A commonly used alternative, just absconding and returning to your country, is illegal and will result in you never being allowed to work in (and possibly even visit) Singapore again.
Next time, please do not sign a contract that you are not sure you can and want to fulfill!

Hi Beppi,

Thanks for the information.. Yes, that is a bigvlesson for me.. for now, I would rather pay than to stay in that kind of environment.. wanted to be free....

Thanks for your help!

I have One Query, May be related here ..


Query --If anybody terminate the contract then EP will stay valid or not .??

I mean if anybody get a new job offer while serving a contract job in Singapore , so will another company need to re apply EP or previous EP will be valid .

Suppose a company applied for EP for one year for its contractual employee  , & employee who is serving one year contract & got another job offer before one year ..So, will the same EP vaild for another job.

New employer has to apply new EP application (it won't affect your existing EP), once EP approves then the existing EP with your current employer has to be cancelled before you get your new EP card.

If you see your pass card, it shows the employer name, then how you think the same EP will exist with new employer?

Note: You should inform your current employer about your resignation, only when your new EP approves. If your new EP application is unsuccessful then your present job won't be affected. Good luck

Thanks Surya2K,

Actaully i have not got EP yet & never seen EP .
My EP was applied 10 Days back & still under Process .

This query came to my mind as i am also being offer 1 year contract position with 1 month Salary penalty (if I leave before 1 year ). So Kindly advise .

Don't understand your query here.

Do you work in Singapore under EP sponsored by an employer? 
If yes then now you got another offer where the new employer is applied EP but it's still pending?

If yes, then I said already that don't tell your existing employer about this development and only inform when your new employer's EP application is approved.

Now, tell me if there is any thing wrong in the above understanding then mention clearly so that I can answer your queries. Thanks

Be careful and check with HR that if you leave the present company then you may have to serve one month notice along with pay back 1 month salary (which means need to serve 1 month notice period for free).

HI Surya ,

Dont get confused , I am just Putting a situation ,.
Actually i got one offer for contract position & EP is under process . That Offer has a clause of 1 month salary to be deducted if i leave before 1 year .. I dont have any other offer currently ... I am asking my HR to either reduce that 1 month salary to 10 Days or Put some capping for arround 1k.

So what is your question then?
It all doesn't seem to make sense!

Your case is simple. You need to check with HR to reduce the amount. If not agreed then serve 1 month notice period without getting paid. Or else don't accept this offer (if you think it's not good), then search for another job.

If you accepted this offer and continue working for the employer, but after few months you got another offer which is better than the current one, then what you should do?

I think this is your question. If yes, then I have already told you what to do.

Don't tell the existing employer till your pass approves, once it approved, you can serve notice period (then settle the amount as agreed and written on offer letter). Join the new company.

Let us know if you still have doubt in your mind. Good luck