Signed a contract before EP approved

Last activity 18 August 2020 by dwengkie

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dwengkieMember18 August 2020 09:41:02

I am currently employed in a company A as permanent employee with SPass. Since I wanted a better offer I applied to another company B. In this company B though, I have to be employed through their vendor.

Now vendor offered EPass. During the SAT, I tried 6500, but only give me S. Tried 6650 and thats only when I would qualify for an EPass. I told them I want EPass for me to sign with them. Over the phone they said they will try 6500 first. I agree with that since I am currently ard 5K .

Now they created the contract for 6500. But the problem now is, they need me to start in 6 weeks. And I would have to pay the company one month if I dont start. I told them and they acknowledge that I am not resigning from Company A until EP is approved.

Second, they offered me 6500 and the contract says I have to be employed with them for 24 straight months. If I leave, I will have to pay 2 months salary. This wasnt in our phone discussion and was just surprised this was in the contract they had me sign. Being there, I felt the pressure to sign the document with hesitation and I did.

Here are my questions.
1. Is it even allowed for them to specify those terms even when I havent have my EP yet?

2. What if EP doesnt get approved soon or gets approved after more than 2 weeks and I am unable to join them in time because I still have to render 1 month in Company A, will I be held liable to Company B?

3. During our discussion, I raised my concern that 24 months too long and if possible to maybe lower it to 12 months coz no one will be sure of what happens in 24 months. He said that I will have to pay if only I resign and move to another company. If I go home for family issue or smth, I will not need to pay the bond. Is this even true? At this point, can I still ask them to lower it down since contract has been signed (Although IPA and EP not issued yet)

4. With the SAT, it says I only get EP on 6650 and they applied 6500. If the EP application gets rejected, will I be asked to sign a new contract with the new values? Was thinking of requesting them to lower the bond from 24 to 12 months if this happens.

I know my greed gave me this anxiety and I probably deserve it, but hope anyone can help with my questions. :'(

beppiGermany - Singapore Expert18 August 2020 14:22:07

15316

First and foremost: Never sign a contract that you aren't entirely comfortable with.
I cannot see anything invalid in the terms you mentioned, including the bond.
Once signed, you will have to abide by the contract (just like the employer)!

1. It is common, even required, that an employment contract exists before the EP is applied for.
2. All employment contracts are conditional upon you getting the associated work visa (EP, S-Pass or WP). If not, the contract is null and void and you cannot be penalized for it. (In most cases, this is explicitly written in the contract, but it applies also if not written.)
3. Retroactively changing an existing (and valid) contract is only possible by mutual agreement. You should get any such agreement in writing!
4. If the EP application gets rejected, you are free to negotiate a new contract with the employer. (But there is no guarantee an EP will be issued then - re-applications with higher salary are usually rejected!)

dwengkieMember18 August 2020 15:04:20

Hi beppi -

Thanks for your reply.
I have always been advising people I know to get things into writing before signing anything coz verbal agreements are hard to prove once issue start to arise but seems I cant practice what I preach. I honestly wasn't comfortable and maybe I felt the pressure into signing it when I was there.

So I guess I can just correct this if ever my EP doesnt get approved. One of those moments I wish it doesn't get approved?

Appreciate your reply. It was very helpful and comforting to know, I still have that slim chance of correcting my mistake.

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