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Posted

Dear All,

I am in a bit of predicament regarding a clause in my employment contract.

I do apologize in advance for the long-winded post, but I want to state the facts correctly.

Thank you in advance.

Long story short:

I've been working for an SME foreign-owned company since May.

My visa & WP costs have been paid for by them.

However, the cost for my wive's 3 month Non-O visa has been paid for by herself, albeit the paperwork has been provided in full by the company.

For multiple reasons (health issues with my in-laws, work-related stress) I chose to resign and gave my verbal notice on 17th September.

However, a clause in my contract is as below:

"The Company will pay for all expenses relating to employee and employee's spouse visa and work permit (employee only).

These expenses are estimated to be 350,000 THB. The Employee hereby agrees that should he wish to resign before having

worked for the company for 18 months he will reimburse this sum of money to the company on the last day of employement"

Upon hearing my verbal notice, my boss broached the subject of repayment of the above mentioned monies,

stating that the idea was for me to work for at least a year, to amortise the WP & visa costs.

However, he said he would think about it.

Since my contract stipulates a written notice period of 60 days, I submitted my written resignation via e-mail on 27th September, citing the last day of employment as 26th Nov.

i also offered to assist in the training & recruitment of my successor.

His reply re-iterated that the idea was for me to work for at least a year, to amortise the WP & visa costs.

Nevertheless, my last day was confirmed as 26th November, provided a replacement was found a month before that date.

Fast forward to today, a replacement is already in place for a week.

My big question is:

Can I be sued for breach of contract if I refuse to re-imburse the monies on the last day of employment?

To this day, there is no clear indication from management whether this has to be paid or not, but what if I refuse in the event that it is demanded on my last day?

I have signed the contract & so has the employer.

My contention is the amount is highly exaggerated; even considering lawyer fees, the costs would be at most, 50-60k.

Additional info:

My probationary period as per the contract, was 4 months.

During the 4th month, I received multiple verbal warnings regarding performance issues & threats of termination.

This was a factor, albeit not the only factor leading up to my resignation decision.

No written warnings were provided at any time.

Posted

You need to consult a lawyer!

You signed and agreed to the T&C's clearly set out in the contract.

It might prove cheaper to meet your contractual obligations than now, belatedly, attempt to challenge the contract.

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

350000 Bht = £7000 approx

Not an "outrageous" sum if the costs involved a lawyer drawing up all the required paperwork involved in obtaining a visas and work permit.

£7000 would buy very little legal time in the West.

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

Er the labour court will do nothing in this instance as no labour law has been breached, these sort of clauses are perfectly legal/ normal when one brings people in on an international job, as the company has incurred costs up front, bear in mind the company has to pay for a replacement for the OP, so typically any clause will include costs for that as well

1. The clause is valid - the only question is what is cost breakdown for thb 350k, ie what is it based on ?....they can only sue for direct losses/costs incurred with the person resigning early

2. Typically the the amount payable would be based on a pro-rata amount ie how many months has the OP worked.

In summary you are in breach contractually and you are liable, so all that remains is how flexible they are negotiating how much you owe them

You can fight it, but suspect you may lose the case

OP what are the direct company costs they have spent on you and the new employee ? And i mean everything, flights/temporary accom etc etc if applicable and how months have you worked ?

  • Like 1
Posted

Reading your post, sums up my thoughts, and than read that you got "warnings" regarding quality of your work... I wonder,,,, is there maybe some other stuff here that you are avoiding to mention in your post....

Glegolo

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

Thai labor court would discard the entire contract, however employer has not withheld any money so Thai labor department has no jurisdiction at all.

Company can file civil lawsuit seeking compensation in the amount stated in the contract . Will only cost company 60 000 baht, recoverable from defendant upon win.

If company choses to take this step, OP will not be able to leave the country and will be liable for just as much in his own legal fees.

If I were OP, I would offer to compensate fair amount, 35000-50000 and end it there.

Should company refuse, OP can always use it as evidence that he tried to negotiate and settle with fair amount. Thai courts like that and would be more inclined to rule in OP' favour .

The labour will not discard the entire contract, they legally cant do that, they can invalidate certain clauses if they breach the labour laws thats all and declare them unenforceable under the labour law

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

350000 Bht = £7000 approx

Not an "outrageous" sum if the costs involved a lawyer drawing up all the required paperwork involved in obtaining a visas and work permit.

£7000 would buy very little legal time in the West.

We are not in the West though, we are in Thailand, I doubt the OPs salary is the same as if he was employed in the West either.

  • Like 1
Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

350000 Bht = £7000 approx

Not an "outrageous" sum if the costs involved a lawyer drawing up all the required paperwork involved in obtaining a visas and work permit.

£7000 would buy very little legal time in the West.

We are not in the West though, we are in Thailand, I doubt the OPs salary is the same as if he was employed in the West either.
What makes you say the OPs salary is not the same as the west ?
Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

350000 Bht = £7000 approx

Not an "outrageous" sum if the costs involved a lawyer drawing up all the required paperwork involved in obtaining a visas and work permit.

£7000 would buy very little legal time in the West.

We are not in the West though, we are in Thailand, I doubt the OPs salary is the same as if he was employed in the West either.

Remind me please .

Who was it who read, accepted and signed the contract?

Even in Thailand legal costs are high !

Posted

I can assure you as I have an employer who does the same for me every year and I can say without a shadow of doubt that total costs amount to something like 10,000 baht per annum. Unless they are falsifying documents for Visas and WPs there is no reason 350,000 baht can be a reasonable sum.

Posted

I can assure you as I have an employer who does the same for me every year and I can say without a shadow of doubt that total costs amount to something like 10,000 baht per annum. Unless they are falsifying documents for Visas and WPs there is no reason 350,000 baht can be a reasonable sum.

Why ?

if they are using a top shelf legal company to do the paperwork, you would easily run up some significant invoices for professional services...although the OPs wife paid for the actual application fees, the company provided the paperwork, so thats professional fees for 2 people

THB 10K LOL..you correct on the application fees to immigration, but what about professional fee for drawing up the paper work and the agent who walks everything through ? So if you think 10 pa covers all this your dreaming

Funny i have an employer and i have no clue what they pay pa for professional fees around WP renewals, and i dont care, not my problem

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

It matters not, that the reimbursement amount (in your opinion) is ridiculous. If the reimbursement terms were specifically stated in the contract, then the OP is legally bound to that contract. Now, the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?coffee1.gif

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

Thai labor court would discard the entire contract, however employer has not withheld any money so Thai labor department has no jurisdiction at all.

Company can file civil lawsuit seeking compensation in the amount stated in the contract . Will only cost company 60 000 baht, recoverable from defendant upon win.

If company choses to take this step, OP will not be able to leave the country and will be liable for just as much in his own legal fees.

If I were OP, I would offer to compensate fair amount, 35000-50000 and end it there.

Should company refuse, OP can always use it as evidence that he tried to negotiate and settle with fair amount. Thai courts like that and would be more inclined to rule in OP' favour .

The labour will not discard the entire contract, they legally cant do that, they can invalidate certain clauses if they breach the labour laws thats all and declare them unenforceable under the labour law

I can assure you they do and they can from personal experience at least 5 times

I have a contract for all employees and they simply discard it, claiming it is not in line with Thai labor law.

You are welcome to challenge it in labor court, if you willing to blow 30000-60000 baht with no chance to recover this money.

Posted

I can assure you as I have an employer who does the same for me every year and I can say without a shadow of doubt that total costs amount to something like 10,000 baht per annum. Unless they are falsifying documents for Visas and WPs there is no reason 350,000 baht can be a reasonable sum.

Why ?

if they are using a top shelf legal company to do the paperwork, you would easily run up some significant invoices for professional services...although the OPs wife paid for the actual application fees, the company provided the paperwork, so thats professional fees for 2 people

THB 10K LOL..you correct on the application fees to immigration, but what about professional fee for drawing up the paper work and the agent who walks everything through ? So if you think 10 pa covers all this your dreaming

Funny i have an employer and i have no clue what they pay pa for professional fees around WP renewals, and i dont care, not my problem

Mine cost me yearly about 40 000 baht.

350 000 is very exaggerated,however i believe they put this amount to prevent people like OP quitting after few months.

May be the amount also includes OP travel costs, settling in etc

Posted

That amount is ridiculous. You should consult the Thai Labor court and file a grievance notifying them of the absurd terms.

Thai labor court would discard the entire contract, however employer has not withheld any money so Thai labor department has no jurisdiction at all.

Company can file civil lawsuit seeking compensation in the amount stated in the contract . Will only cost company 60 000 baht, recoverable from defendant upon win.

If company choses to take this step, OP will not be able to leave the country and will be liable for just as much in his own legal fees.

If I were OP, I would offer to compensate fair amount, 35000-50000 and end it there.

Should company refuse, OP can always use it as evidence that he tried to negotiate and settle with fair amount. Thai courts like that and would be more inclined to rule in OP' favour .

The labour will not discard the entire contract, they legally cant do that, they can invalidate certain clauses if they breach the labour laws thats all and declare them unenforceable under the labour law

I can assure you they do and they can from personal experience at least 5 times

I have a contract for all employees and they simply discard it, claiming it is not in line with Thai labor law.

You are welcome to challenge it in labor court, if you willing to blow 30000-60000 baht with no chance to recover this money.

I reiterate ~ "the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?"coffee1.gif

Posted

Hi All,

Thanks for the responses.

To put things in perspective:

My primary intention is to be prepared in case these monies are demanded by the employer, at some point.

So far, there is no indication that this will happen: management has been understanding in this regard.

Afaik, the costs cover WP, visa plus legal fees.

No relocation/ traveling costs and/or any other expenses included whatsoever.

However, I am skeptical of the amount stated: from my understanding this won't exceed 50-60k, even in the most extreme cases.

Legal advice given to me has been to request actual receipts to justify the amounts stated, which I think is perfectly fair.

MODS are welcome to close this topic now.

Thanks to all again.

Posted

I reiterate ~ "the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?":coffee1:

Perhaps to seek assurance that he does not have to repay

or may be because seeing lawyer would cost at least 3000 baht, so any free advise is great

I have never had good dealings with Labor department,

Latest one, my staff pushed me to the limit, so i decided to engage a lawyer.

Just to show how this department works.

My contract states, employee must give 15 day notice to resign, failure to provide 15 days notice will result in deposit of 3000 baht not being returned.

First case, Labor department stated that this is not legal, and i have to give back deposit. Employee does not have to give any notice at all.

HOWEVER, if employee signs that they are leaving without 15 day notice and willingly forfeit the deposit, then it is legal

Second case, employee signed the waiver, recorded on the video with sound.

Then she goes to labor department.

I went there, showed signed contract, showed signed waiver, showed video, was told ok, all clear

1 month later, letter from labor department that i have to refund the money, all the waivers are irrelevant or go to court.

So got a lawyer, he went through all the documents and basically explained, labor department represent employees and will say or do anything to help them.

Labor court would over turn that, however will take anywhere from 3 months to 1 year and legal fees would be around 30 000- 60 000.

I can not claim this money from employee or the labor department, however i could pay this money, then file civil suit against employee for breach.

Would win 100%, cost 60 000 upfront. and little chance of recovering this money,

Employee could end up in jail for failing to pay, however if she/he makes even a small payment then no jail.

Posted

I reiterate ~ "the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?":coffee1:

Perhaps to seek assurance that he does not have to repay

or may be because seeing lawyer would cost at least 3000 baht, so any free advise is great

I have never had good dealings with Labor department,

Latest one, my staff pushed me to the limit, so i decided to engage a lawyer.

Just to show how this department works.

My contract states, employee must give 15 day notice to resign, failure to provide 15 days notice will result in deposit of 3000 baht not being returned.

First case, Labor department stated that this is not legal, and i have to give back deposit. Employee does not have to give any notice at all.

HOWEVER, if employee signs that they are leaving without 15 day notice and willingly forfeit the deposit, then it is legal

Second case, employee signed the waiver, recorded on the video with sound.

Then she goes to labor department.

I went there, showed signed contract, showed signed waiver, showed video, was told ok, all clear

1 month later, letter from labor department that i have to refund the money, all the waivers are irrelevant or go to court.

So got a lawyer, he went through all the documents and basically explained, labor department represent employees and will say or do anything to help them.

Labor court would over turn that, however will take anywhere from 3 months to 1 year and legal fees would be around 30 000- 60 000.

I can not claim this money from employee or the labor department, however i could pay this money, then file civil suit against employee for breach.

Would win 100%, cost 60 000 upfront. and little chance of recovering this money,

Employee could end up in jail for failing to pay, however if she/he makes even a small payment then no jail.

What your talking about is a completely different scenario, taking a deposit off an employee with reference to resignation is an unfair labour practice as your withholding money from them which is rightly theirs, irrespective of what they signed or the terms of the contract....the DOL's case is justified.

In the case of the OP the company fronted the costs for his employment, therefore would incur a direct financial loss if the OP resigns earlier than stated therefore this clause is valid to claim the costs back

In your case your with holding money from them before the fact - unfair labour practice

In the case of the OP they are claiming costs they have incurred after the fact - standard contractual condition in cases like this

Further in your case the employee will not end up in jail for failure to pay... stop talking rubbish, Thailand has no debtors jail, and this is a civil case not a criminal one

Posted

Hi All,

Thanks for the responses.

To put things in perspective:

My primary intention is to be prepared in case these monies are demanded by the employer, at some point.

So far, there is no indication that this will happen: management has been understanding in this regard.

Afaik, the costs cover WP, visa plus legal fees.

No relocation/ traveling costs and/or any other expenses included whatsoever.

However, I am skeptical of the amount stated: from my understanding this won't exceed 50-60k, even in the most extreme cases.

Legal advice given to me has been to request actual receipts to justify the amounts stated, which I think is perfectly fair.

MODS are welcome to close this topic now.

Thanks to all again.

You will find you have been given a stardard contract and the amount is a padded cost to cover themselves and the clause would have been better worded stating they can claim "upto" 350k off you

As stated earlier if they are going to claim this off you, they need to justify and show direct costs to the tune of 350k for the claim to be valid, there is no dispute you are in breach, you are, you owe them something so its down to negotiation now

Typically these sorts of contracts are drawn up by some loonie HR person who are normally on a planet of their own in most companies, and management gets involved they normally take a more practical and common sense view of things, as long as they are not out of pocket because of your breach everyone will be happy

Posted

I reiterate ~ "the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?":coffee1:

Perhaps to seek assurance that he does not have to repay

or may be because seeing lawyer would cost at least 3000 baht, so any free advise is great

I have never had good dealings with Labor department,

Latest one, my staff pushed me to the limit, so i decided to engage a lawyer.

Just to show how this department works.

My contract states, employee must give 15 day notice to resign, failure to provide 15 days notice will result in deposit of 3000 baht not being returned.

First case, Labor department stated that this is not legal, and i have to give back deposit. Employee does not have to give any notice at all.

HOWEVER, if employee signs that they are leaving without 15 day notice and willingly forfeit the deposit, then it is legal

Second case, employee signed the waiver, recorded on the video with sound.

Then she goes to labor department.

I went there, showed signed contract, showed signed waiver, showed video, was told ok, all clear

1 month later, letter from labor department that i have to refund the money, all the waivers are irrelevant or go to court.

So got a lawyer, he went through all the documents and basically explained, labor department represent employees and will say or do anything to help them.

Labor court would over turn that, however will take anywhere from 3 months to 1 year and legal fees would be around 30 000- 60 000.

I can not claim this money from employee or the labor department, however i could pay this money, then file civil suit against employee for breach.

Would win 100%, cost 60 000 upfront. and little chance of recovering this money,

Employee could end up in jail for failing to pay, however if she/he makes even a small payment then no jail.

What your talking about is a completely different scenario, taking a deposit off an employee with reference to resignation is an unfair labour practice as your withholding money from them which is rightly theirs, irrespective of what they signed or the terms of the contract....the DOL's case is justified.

In the case of the OP the company fronted the costs for his employment, therefore would incur a direct financial loss if the OP resigns earlier than stated therefore this clause is valid to claim the costs back

In your case your with holding money from them before the fact - unfair labour practice

In the case of the OP they are claiming costs they have incurred after the fact - standard contractual condition in cases like this

Further in your case the employee will not end up in jail for failure to pay... stop talking rubbish, Thailand has no debtors jail, and this is a civil case not a criminal one

You are wrong again, as i clearly explained already.

The only one talking rubbish is you, You have no experience with labor department from employers point of view, so please stop pushing what you do not know.

I clearly already stated i employed a lawyer and call me crazy, but i am certain he would know little more about Thai legal system than you

Posted

I reiterate ~ "the reason why the OP has come to this forum, seeking legal advise, is anyone's wild guess?":coffee1:

Perhaps to seek assurance that he does not have to repay

or may be because seeing lawyer would cost at least 3000 baht, so any free advise is great

I have never had good dealings with Labor department,

Latest one, my staff pushed me to the limit, so i decided to engage a lawyer.

Just to show how this department works.

My contract states, employee must give 15 day notice to resign, failure to provide 15 days notice will result in deposit of 3000 baht not being returned.

First case, Labor department stated that this is not legal, and i have to give back deposit. Employee does not have to give any notice at all.

HOWEVER, if employee signs that they are leaving without 15 day notice and willingly forfeit the deposit, then it is legal

Second case, employee signed the waiver, recorded on the video with sound.

Then she goes to labor department.

I went there, showed signed contract, showed signed waiver, showed video, was told ok, all clear

1 month later, letter from labor department that i have to refund the money, all the waivers are irrelevant or go to court.

So got a lawyer, he went through all the documents and basically explained, labor department represent employees and will say or do anything to help them.

Labor court would over turn that, however will take anywhere from 3 months to 1 year and legal fees would be around 30 000- 60 000.

I can not claim this money from employee or the labor department, however i could pay this money, then file civil suit against employee for breach.

Would win 100%, cost 60 000 upfront. and little chance of recovering this money,

Employee could end up in jail for failing to pay, however if she/he makes even a small payment then no jail.

What your talking about is a completely different scenario, taking a deposit off an employee with reference to resignation is an unfair labour practice as your withholding money from them which is rightly theirs, irrespective of what they signed or the terms of the contract....the DOL's case is justified.

In the case of the OP the company fronted the costs for his employment, therefore would incur a direct financial loss if the OP resigns earlier than stated therefore this clause is valid to claim the costs back

In your case your with holding money from them before the fact - unfair labour practice

In the case of the OP they are claiming costs they have incurred after the fact - standard contractual condition in cases like this

Further in your case the employee will not end up in jail for failure to pay... stop talking rubbish, Thailand has no debtors jail, and this is a civil case not a criminal one

You are wrong again, as i clearly explained already.

The only one talking rubbish is you, You have no experience with labor department from employers point of view, so please stop pushing what you do not know.

I clearly already stated i employed a lawyer and call me crazy, but i am certain he would know little more about Thai legal system than you

Really ? how do you know i have no experience with the labour dept, how do you know how much i know about the thai legal system ?....granted i am not a lawyer

Ok So show me 1 case link where somebody has gone to debtors prision over money not paid in a civil case involving a contractural dispute in the manner you describe....just 1 and prove i am talking rubbish

Your state the DOL take the side of employees, which is true, but if they didnt think there was a case, they would not taken the case and issued the letter in thr first place

You employed a lawyer so what, win or lose your paying him and he will persue any case you intruct him to

Posted

Really ? how do you know i have no experience with the labour dept, how do you know how much i know about the thai legal system ?....granted i am not a lawyer

Ok So show me 1 case link where somebody has gone to debtors prision over money not paid in a civil case involving a contractural dispute in the manner you describe....just 1 and prove i am talking rubbish

Your state the DOL take the side of employees, which is true, but if they didnt think there was a case, they would not taken the case and issued the letter in thr first place

You employed a lawyer so what, win or lose your paying him and he will persue any case you intruct him to

You work for a company you are not an employer. Unless to appear smart you now want to claim you are not an employee.

Pick one chair to sit on.

Again I have clearly explained , first they stated employee needs to sign a waiver. After they contradicted themselves and stated otherwise .

After lawyer was involved they stated a special waiver form was required.

This has nothing to do with OP's case, my example was on how labor department operates .

And yes I am certain a labor lawyer knows little more than self proclaimed expert with no real like experience .

Though I am certain that would not stop you from posting more rubbish based on what you might think is true

Posted

Really ? how do you know i have no experience with the labour dept, how do you know how much i know about the thai legal system ?....granted i am not a lawyer

Ok So show me 1 case link where somebody has gone to debtors prision over money not paid in a civil case involving a contractural dispute in the manner you describe....just 1 and prove i am talking rubbish

Your state the DOL take the side of employees, which is true, but if they didnt think there was a case, they would not taken the case and issued the letter in thr first place

You employed a lawyer so what, win or lose your paying him and he will persue any case you intruct him to

You work for a company you are not an employer. Unless to appear smart you now want to claim you are not an employee.

Pick one chair to sit on.

Again I have clearly explained , first they stated employee needs to sign a waiver. After they contradicted themselves and stated otherwise .

After lawyer was involved they stated a special waiver form was required.

This has nothing to do with OP's case, my example was on how labor department operates .

And yes I am certain a labor lawyer knows little more than self proclaimed expert with no real like experience .

Though I am certain that would not stop you from posting more rubbish based on what you might think is true

Still waiting for that link showing a case where someone was sent to jail to a debtors prision for a civil case to show i am talking rubbish...

Until that time your posting hot air and diatribes....how do you know i have no real life experience you keep making assumptions all the time, i am giving rational, logical argument thats all...

Posted

Really ? how do you know i have no experience with the labour dept, how do you know how much i know about the thai legal system ?....granted i am not a lawyer

Ok So show me 1 case link where somebody has gone to debtors prision over money not paid in a civil case involving a contractural dispute in the manner you describe....just 1 and prove i am talking rubbish

Your state the DOL take the side of employees, which is true, but if they didnt think there was a case, they would not taken the case and issued the letter in thr first place

You employed a lawyer so what, win or lose your paying him and he will persue any case you intruct him to

You work for a company you are not an employer. Unless to appear smart you now want to claim you are not an employee.

Pick one chair to sit on.

Again I have clearly explained , first they stated employee needs to sign a waiver. After they contradicted themselves and stated otherwise .

After lawyer was involved they stated a special waiver form was required.

This has nothing to do with OP's case, my example was on how labor department operates .

And yes I am certain a labor lawyer knows little more than self proclaimed expert with no real like experience .

Though I am certain that would not stop you from posting more rubbish based on what you might think is true

Still waiting for that link showing a case where someone was sent to jail to a debtors prision for a civil case to show i am talking rubbish...

Until that time your posting hot air and diatribes....how do you know i have no real life experience you keep making assumptions all the time, i am giving rational, logical argument thats all...

Now you just trolling for the sake of trolling.

Last time i checked courts do not post their rulings on internet, unless a very high profile case and you know that.

For the last time, you have no legal knowledge nor first hand experiences, so stop posting utter drivel.

Your initial post was spot on, from there on when you decided to be an expert on labor department and thai legal system , nothing but utter drivel

  • Like 1

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