I created this thread so that we can share knowledge and experience of how to protect ourselves from bad employers who will rip us apart to their benefits.
I received this letter from a friend
My friend signed the letter as she is not informed or educated about contract law. Moreover, many employee would sign it in fear of losing their job. This letter is to superseed some clause in the offer letter. My friend is already working in the company for quite some time.
I find that the new clauses are very ridiculous. It is a total rip off to the employee to benefit the employer alone.
I believe many people would think that once they've inked their signature, there is no turning back. That is NOT the case. A contract can be deemed void under the following:
1. Fraud
2. Coercion
3. Undue Influence
4. Misinterpretation
5. Unlawful
Void contract - Wikipedia, the free encyclopedia
For the case above, the contract or this new agreement can be deemed void because it is under undue influence. The company, as an employer, has power over its employee and used that power on them to agree on the contract. (Correct me if I were wrong, as I am not a lawyer). Also, I feel that the last clause (Prohibit its employee to work for another company of same field within 12 months) is a violation of rights. Some companies might prohibit their employee from working with companies that have business dealing with them only.
Thus it is important to equip ourselves with some knowledge of contract law to protect ourselves from nasty human being.
The last time I checked, I think you're covered under the Employment Act if you are RM1,500 or below. I could be wrong so you should contact the Labour Office to be sure.
You are not covered above RM1,500 and below RM5,000 but the act has been amended for this salary range such that the Labour Office will provide you assistance to enforce the terms your Contract of Service (CoS).
Above RM5,000 there is no coverage under the Emplyment Act or assistance from the Labour Office and the enforcement of the terms is based on what you agreed on in the CoS. In the event of a breach, it is then actionable in the normal courts as a civil proceeding just like any contract. Of course if you are covered under the Act, you can bring the action at the Labour Courts which is less formal, faster and probably with assistance from the Labour Office itself free of charge....if you qualify. Call them and check your options.
Getting to the meat of your friend's problem problem, I don't have all the facts other than what you mentioned in this post and the role of her employer leading up to all this disagreement is not clear.
In any case, the law assumes, that as normal adults, you are capable of negotiating and making your own deals based on your relative bargaining positions with the other party. The law will not not play nanny and hold your hand to stop you from entering into contractual arrangements, good or bad. To do so will be mean imposing their will on your freedom to contract and that is not a good law and it won't work. You bargain and work out your own terms with the employer and once agreed and inked on the dotted, it becomes your CoS.
I am assuming your friend can read, write and understand English. If you can do all those things, having an intimate knowledge of contract law is not necessary and irrelevant. If you understand what you are signing then you understand the terms and its implications.
6 months notice is unusual for a position of a general clerk....but it is not unlawful. Again this goes back to each party's responsibility for having made their own deals.
I don't think you can successfully push the angle of undue influence, coercion, misrepresentation and what not. Generally, you have to show exceptional and unique circumstances for that to carry.
It's a general clerk position and its not like it is hard to find a similar position elsewhere if the terms of this employer is not favorable. In that sense, it is hard to argue coercion or undue influence that forces you to sign the contract. Merely saying that you needed the money or the job or that you want to stick around because you have been with the company for a longtime is not coercion or undue influence. Sorry.
Bottom line, upon reflection she made a bad deal for whatever reason and I sympathize she is now unhappy. Hopefully, she will learn from this experience. Being a little bit more shrewd, less accommodating and having a firm idea on what you want in the job market tends to minimize these kind of issues. Remember, employers choose you but you also choose them. In many cases people get bullied or manipulated only because they act like sheep and accept everything that is shoved out to them. I think what is true with everything in life is no one will gift you stuff on a silver platter and people will not automatically look out for your best interest. You look out for yourself.
