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CPF paid and refund on sign-on/ retention bonus

 
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Is CPF on employee sign-On/ retention bonus refundable if employee resign/terminated prematurely and didn't fulfill employment contract?
Yes, because the employment contract say so
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 0%  [ 0 ]
No, because bonus is due and payable irregardless on employement contract
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Total Votes : 3

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Flyersummer
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Joined: 26 Feb 2006
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PostPosted: Sun Mar 08, 2009 11:04 am    Post subject: CPF paid and refund on sign-on/ retention bonus Reply with quote

Scenario 1
If an employee have been paid bonus in December 2008 because company have done well. Later in January 2009, company have cashflow problem and ask the employee to pay back part of the bonus to help the company stay afloat, and the employee said okay.

Company wants to claw back the CPF paid on the bonus as well, is this acceptable?


Scenario 2
Based on employee contractual agreement where the employee signed on the employment contract, the contract says the employee will be given a bonus of $80,000 immediately on the first working month once he joined the company. A clause in the employment contract says that if employee resigned/terminated without fulfiling at least 1 year employment with the company, Company have the right to claw back bonus.

Company wants to claw back the CPF paid on the bonus as well, is this acceptable?
-------------------------------------

Please shed some light on this, thank you Smile

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Kai & Hian
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PostPosted: Sun Mar 08, 2009 11:33 am    Post subject: Reply with quote

Erm...

From what I know (not sure correct or not), Scenario 1 not covered by Employment Act, so really depends on the agreement between management & employee. Also, unless details are drawn out properly & in black & white, employer can bascially do anything simply b'cos Employment Act does not cover.

As for Scenario 2, again similar situation, whereby Employment Act does not cover. Meaning the Employment Contract holds true. Meaning the company can claw back the CPF, since it's already stated they have the right to do so. Confirmed employer-win situation.

Anyone know the Employment Act in more detail, please correct me if I'm wrong. The last time I read the Employment Act is quite some time ago... :P

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Flyersummer
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PostPosted: Sun Mar 08, 2009 11:46 am    Post subject: Reply with quote

but if that's the case, then cpf act is insignificant if employment contract is all-binding?
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Kai & Hian
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PostPosted: Sun Mar 08, 2009 11:55 am    Post subject: Reply with quote

Flyersummer wrote:
but if that's the case, then cpf act is insignificant if employment contract is all-binding?


Not too sure about the CPF Act... I thought it's more of to control what you can & cannot use which part of your CPF for, rather than what the employer can or cannot do??

Can someone clarify?? :P

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Flyersummer
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PostPosted: Sun Mar 22, 2009 5:49 pm    Post subject: Reply with quote

....
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