Support Site for The Unemployed & Underemployed
Monday December 10th 2018

Resigned PMET made to pay salary in lieu, commission to recruitor and others

Hi Mr. Gilbert,

My case is this:

I gave notice wanting to resign immediately from my company which I have just joined and was willing to pay the one month in lieu compensation to the company but the director also wanted me to pay for the recruitment costs as well including training materials and name cards.

I called the recruitment company in question and they say there are no charges incurred for the director and they will give the company a free replacement.

And are the terms of forcing an employee to sell their products fair?

The director has given me 7 days to pay him the compensation.

Please advise.

Thank you

Regards,

Norman

Below is his email to me:

Good afternoon Norman,

I, representing XXX Financial Pte Ltd (the “Company”) have received the notice of your resignation on XXX 5.32pm.

As mutually agreed in the Letter of Appointment, please make a payment of $4,511.20 to the Company.

If payment is by cheque, the cheque should be crossed and be paid to “XXX Financial Pte Ltd”.

Otherwise, a Bank transfer to the Company’s OCBC Current Account (Acct No. XXX) will be accepted as well.

The amount of $4,511.20 is broken down as follows:

Fee to Recruitment Agency : $2,311.20 (the recrutiment agency say they will be providing a free replacement)

1 Month Salary in Lieu of Notice : $2,000 (the salary stated in the contract is $1k plus $500 allowances)

Training and Misc Costs (e.g. Namecards, Print Materials etc) : $200

Please make payment within 7 days of this email and kindly inform me once the cheque is ready to be collected or the payment has been made.

Upon receipt of the funds, the Company will issue you an official receipt.

Thank you.

Best Regards,

Steven

Editor’s note: We have advised the writer to ignore the unreasonable demands of the company but do be careful when signing on any contract as it can be legally binding. Nevertheless, the company also will have it’s hands full trying to retrieve the penalty charges legally as no court of law will agree to such terms. Moreover, it will take a 5-figure sum for the company to sue the employee in court and unless its a huge sum to be recovered, the legal and court fees will wipe out the sum collected.

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5 Responses to “Resigned PMET made to pay salary in lieu, commission to recruitor and others”

  1. Roy says:

    My issue is this: Fee to Recruitment Agency : $2,311.20 (the recrutiment agency say they will be providing a free replacement)

    I have NEVER come across a company that insists on a candidate who resigns pay for recruitment fees, even for the very senior roles where they may have taken on a retainer (usually 25% of their annual compensation) to look for candidates.

    To me, it is a cheap shot, and especially since they are already getting a replacement for free. So why should the candidate bear the costs?

  2. The Rock says:

    This is absurd. How can a company make the candidate pay the recruitment fee when free replacement is provided. Just ignore the unreasonable demand. It is unlikely the company will have a case against the candidate.

  3. Unfair says:

    So unfair. Others have trouble finding jobs. You on the other hand quit so easily. Are you trying to mock the jobless?

  4. Ricky says:

    If a company ask a resigned to pay the recruitment fee to the recruitment agency, there is a high probability that that person has some ‘business dealings’ where he/she also ‘earn’ or profit from it, a case of a ‘double hatting’. The resignee can report to the relevant authority (eg. Police) if he/she is harassed by the company or recruitment agency to paid up, also notified or complaint to Labour ministry to feedback the case to them ( although it seem to be useless, authority will take action when many of such cases arises).

  5. CY says:

    Hi,
    I think you should make a report with the police for a record.
    This is because the situation seem to me a behaviour of threat and blackmailing. Is best to have a police record. Next report to MOM. Do NOT pay anything till authority resolve it.
    Pls share the company name so we know they hold such practice and the director name.

    Thanks in advance for heads up

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