Contract Question

[seadoo]

I entered into a new contract sometime ago, at the time of signing I mentioned to the employer that there was indeed a start date, but they failed to put a finishing date on the contract.

Does this mean I am classified as an on-going employee or something like that, and what are my rights against the employer if lets say my work permit was knocked back.

[SunbeltAsiaExpert]

The contract remains to be valid and enforceable. However, since there is no end-date, the contract is presumed to be an open-dated contract which signifies permanent employment. Therefore, your contract will not cease until either party decides to terminate it otherwise. If by any chance you are terminated without justifiable reason, you may claim for “severance pay” depending on the length of service you performed under the company. If you pass probation after four (4) months you may claim severance pay according to the schedule below:

Length of Service Amount of Severance pay

120 days – 1 year: 30 days severance pay

1 year – 3 years: not less than 90 days severance pay

3 years – 6 years: 6 months’ salary

6 years – 20 years: 8 months’ salary

Over 20 years: 10 months’ salary

Your employer must give you a 30-day notice of termination if he/she wishes to terminate your employment. In lieu of this notice, your employer must pay you a 1-month salary for failing to provide notification including the days you have worked until the end of the month (i.e. you were terminated 15th of the month without prior notice, you can claim 1 month salary + 15 days work until the end of the month totaling 2 months) on top of the severance pay as per schedule above.

This law applies if, and only if (1) there is no termination clause stated in the contract, (2) if the employer has justifiable reason to terminate you, (3) if you voluntarily resign from the company or (4) you did not pass probation. In the end, it will still depend on the provisions stated in the contract. You must check carefully what provisions are stated in the contract as each employment agreement varies from company to company. It is highly recommended that you consult a lawyer to review your contract in case of doubt. Remember that prevention is always better than cure.

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