“Other than intervening in such cases to help the employees, MOM will also not hesitate to take other actions, such as suspension of work pass privileges, against recalcitrant employers,” it said. The ministry added that “clear principles and markers on when such clauses are not enforceable” have also been set by the Civil Courts. “While there are legitimate reasons why employers include restraint of trade clauses in employment contracts (such as to protect trade secrets and trade connections) or impose liquidated damages for specific contractual breaches (such as breaking a training bond), excessive or unreasonable use of such practices cannot be justified.” MOM said it has been in “active discussion” with tripartite partners on such issues and will ensure that unreasonable contractual clauses do not become the norm in workplaces here. READ: TADM recovers S$29m in owed wages resolves 85% of salary claims within 2 months “Due to the challenging business environment, there are employers who may resort to underhand practices or tactics to address the problems they are facing, but to the possible detriment of the workers … (Including) unfair clauses is unethical as they abuse the vulnerable position the workers might be in,” wrote the MP. Writing on the labour movement’s blog on Wednesday, Mr Zainal, who is the assistant secretary-general of the National Trades Union Congress (NTUC), cited examples of “one-sided and unethical clauses” that take advantage of the “vulnerable position” of workers, and called for more to be done. MOM's statement was in response to media queries about a blog post by Member of Parliament (MP) Zainal Sapari. It also agreed to review the clause for future employees, said the ministry. The firm involved in the example cited by MOM had heeded TAFEP's advice to drop the demand for compensation after the latter said the clause was unreasonable. cooperative" after being told to justify the contractual clauses imposed and to remove or not enforce those that were unfair, said MOM. This was an example given by the Ministry of Manpower (MOM) on Wednesday (Oct 30) in a statement addressing the issue of unfair clauses found in employment contracts in Singapore.Īround 50 of such cases, with some involving a high financial penalty, had been lodged with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) since September 2018.Įmployers involved in these cases were "generally. While this was a clause found in the employee’s contract, it was an “unreasonable” one. SINGAPORE: An employee who wanted to quit after less than three months on the job was told to pay the company a month's worth of salary as compensation.
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