Question about contract termination

[d3viliz3d]

Sticky situation here... Basically I signed a contract saying that I will get a monetary penalty if I resign before a specific date. Stupid of me to sign such a thing, but was really in need of a work permit back then.

My question is, is it even legal for an employer to impose such penalty? Will I have to suck it up and pay upon resignation?

 

I should also mention that when my contract started, my salary was below the minimum required for expats (< 50.000B) and that is written clearly on the contract; any chance this was reason enough to invalidate it and/or make it not worth for the employer to seek compensation?

 

TIA!

Edited May 25, 2018 by d3viliz3d

[varun]

These kind of underhanded tactics are usually used (especially by smaller companies) to control employee attrition.

 

Anyhow, just because you signed a contract doesn't mean that specific (ridiculous) clauses within the contract are enforceable by default.

 

The company has to be able to prove measurable losses for your resignation before the specific date and can't impose a monetary penalty just for leaving before a specific date.

I wouldn't worry too much, and my honest suggestion would be to not waste one more minute in such a kind of company and look for another job.

 

If this does come up at the time of your resignation, you can call their bluff and tell them you will go to the Department of Labor and file a complaint.

You didn't do anything stupid like leave your passport with them, did you?

[jackdd]

Afaik the minimum salary is only a fixed requirement to get a non-b visa based on working, to get a work permit there is no fixed minimum, theoretically they could pay you 10k per month.

You could make them fire you instead of resigning

Edited May 25, 2018 by jackdd

[blackcab]

It's an interesting one.

 

Yes, it is legal to impose the penalty for non-performance of the contract. You agreed to the penalty.

 

That said, Section 76 of the Labour Protection Act makes it clear your employer cannot deduct the money from your salary (unless you stole something or damaged something, etc.)

 

So you have a situation  where if they deduct your salary you can go to the Labour Court for redress. However they can take you to District/Provincial Court for non payment.

 

Without sounding alarmist, they can ask the Court to restrict your ability to leave Thailand without the permission of the Court until the case is concluded, which could take several years.

 

If you intend staying in Thailand in the future, and your current employer is liable to go the Court route, I would just pay up now.

 

Whatever the deduction is, it will be small change compared to the Court route.

 

Or call their bluff. Up to you.

[theguyfromanotherforum]

8 hours ago, d3viliz3d said:

I should also mention that when my contract started, my salary was below the minimum required for expats (< 50.000B)

 

No, it isn't. You are very wrong.

[d3viliz3d]

19 hours ago, varun said:

These kind of underhanded tactics are usually used (especially by smaller companies) to control employee attrition.

 

Anyhow, just because you signed a contract doesn't mean that specific (ridiculous) clauses within the contract are enforceable by default.

 

The company has to be able to prove measurable losses for your resignation before the specific date and can't impose a monetary penalty just for leaving before a specific date.

I wouldn't worry too much, and my honest suggestion would be to not waste one more minute in such a kind of company and look for another job.

 

If this does come up at the time of your resignation, you can call their bluff and tell them you will go to the Department of Labor and file a complaint.

You didn't do anything stupid like leave your passport with them, did you?

Thanks for the suggestions. It looks like you know what you're talking about, the passport was also one of their initial requests, but I refused to give it. 

 

11 hours ago, blackcab said:

It's an interesting one.

 

Yes, it is legal to impose the penalty for non-performance of the contract. You agreed to the penalty.

 

That said, Section 76 of the Labour Protection Act makes it clear your employer cannot deduct the money from your salary (unless you stole something or damaged something, etc.)

 

So you have a situation  where if they deduct your salary you can go to the Labour Court for redress. However they can take you to District/Provincial Court for non payment.

 

Without sounding alarmist, they can ask the Court to restrict your ability to leave Thailand without the permission of the Court until the case is concluded, which could take several years.

 

If you intend staying in Thailand in the future, and your current employer is liable to go the Court route, I would just pay up now.

 

Whatever the deduction is, it will be small change compared to the Court route.

 

Or call their bluff. Up to you.

I see. Yeah I plan to stay here long term, so I guess I will have to pay up if I resign...

 

10 hours ago, theguyfromanotherforum said:

 

No, it isn't. You are very wrong.

Are you sure? I'm not 100% sure either, but that's what I could find online and heard many times. As an European, at least: https://www.thailandlawonline.com/thai-company-and-foreign-business-law/work-permit-for-foreigners-in-thailand

[d3viliz3d]

18 hours ago, jackdd said:

Afaik the minimum salary is only a fixed requirement to get a non-b visa based on working, to get a work permit there is no fixed minimum, theoretically they could pay you 10k per month.

You could make them fire you instead of resigning

That was my idea as well, but I guess I'd need to find a creative way to do it. Can't risk creating damages and be held accountable for it, or just not going to the office would no work either. Maybe just being under performing on purpose? Haha!

 

Suggestions are well accepted ?

[blackcab]

The OP has received advice regarding their original question.

 

This thread is not going to provide the OP with creative ways to get fired so that they can obtain a pecuniary advantage from their employer.

 

Closed.