I have recently been invited to sign a contract with a (reputable agency) which contains what they call a Guarantee Clause, but which can be construed as a retainer. Basically, they want me to give them 10000 baht; this sum to be deducted in monthly instalments of 1000 bht from my monthly salary for the duration of the contract. They have intimated that these monies will be repaid to me on completion of the contract.

Has anyone else encountered the aforesaid Clause? Is it legal?

NOTICE PERIOD: No provision has been made for this, despite my advising them that it is normal practice for either party to give one months notice. Apparently modern day SLAVERY is still very much alive and kicking...........................! Naturally, stringent provisions have been incorporated to exact the max amount of baht from the employee should it become necessary for the agency to terminate the contract.

Incidentally the same agency have apparently been inforned that you can get a letter from the British Embassy to verify that your qualifications are equivalent to a BA and that the Council will not provide accreditation for any documents, other than a BA. ( right thinkiing ...............might consider the aforementioned to be ......!

Any Thoughts?

I think the deduction may be legal, but I am not 100% positive. The problem they may get themselves into is that in calling it a deduction, they are acknowledging that it is a part of your salary and therefore the money rightfully belongs to you.

They would be much better off to give you a salary that is 1,000 baht per month less and then offer you a 10,000 baht reward upon completion of the contract.