Am i liable for a job's non commencement penalty after i backed out from the offer 1 day after signing? The offer letter's approval is subjected to a security clearance, which i have not submitted documents for the clearance.

Answer :



    answered on 22/05/2018

    flag as inappropriate

    This will depend on the exact phrasing and terms used in the contract you have signed. If the monetary compensation stipulated in the contract is an extravagant amount, there is a possibility that the non-commencement clause will be held to be a penalty clause and made unenforceable. The Employment Act does not apply to the contract as you are not in an employer-employee relationship since you have not started work. Any claim against you from the workplace you have turned down will have to be a civil claim.

    Did you find this post useful? Please provide your feedback by clicking on the link above.