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.

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    LegalHelp

    answered on 22/05/2018

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    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.

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