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Years Service Commitment in Job Contract

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  1. #1

    Years Service Commitment in Job Contract

    Hi,

    This is quite long, so please bear with me.

    I work in planning and operations in a HK tech related company. Some years ago, I took an interest in software development and put myself through a course. After which, I've been learning on my own outside of work. Meanwhile I have also made use of my new skills at work to smoothen some of our processes and got support from management.

    I wanted to go into this area full time and expressed my desire to resign. As a counter-offer, the company proposed to move me into software department (in Germany) to try it out for 6 months. I accepted the idea and agreed to give it a try.

    Now they are going to amend my work contract to reflect my new role, and wanted to add a clause stating that I will commit to work with the company 1.5 years after my 6-month trial in Germany. The clause is rather vague, and says just that, without any mention of penalties etc. in the event it is violated.

    Personally, it's hard to justify such a commitment:
    -The only investment (I can tell) by my company is my accommodation in Germany which amounts only to HKD 4,000 - HKD 5,000 per month (it's a really small town)

    -I will be treated the same way as any new recruit (I will get the same training, and will get similar pay)


    Will such a clause hold up in court in the event of a dispute? What are your thoughts here?

    If I were to check with the Labour Department, how do I go about it?

    Many thanks in advance !!


  2. #2

    Join Date
    Apr 2003
    Location
    Hong Kong
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    just think about it, 6 months overseas assignment will cost the company a lot more than just accommodation. who will do your work for 6 months whilst you are away? if you are sick in Germany who is responsible for insurance healthcare, etc. who is paying your flights?

    I would say it is typical HK clause. If you don't agree don't sign it !

    Probably unenforceable, but only the court can rule, but why worry about that, you have the choice to sign or not.


  3. #3

    Join Date
    Feb 2005
    Location
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    1.5 yr fixed contract for 6 months training overseas. OH sounds excessive, do u think the 6 months in Germany where the Germans will ignore you lol is worth the extra 1 and half years of your life stuck in this company.

    JAherbert likes this.

  4. #4

    Very common in Germany to commit to a company if they pay for your training/education, but usually there's a termination clause specifying how much you'd owe in case you quit and then it's deducted pro-rata for the time that is left under your commitment. If a new company then wants to snatch you, they often agree to pay the outstanding amount if you make it past the probational period. Maybe you can ask for such a termination clause.

    UK/HKboy and gigglinggal like this.

  5. #5

    Join Date
    Mar 2009
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    Quote Originally Posted by civil_servant:
    Very common in Germany to commit to a company if they pay for your training/education, but usually there's a termination clause specifying how much you'd owe in case you quit and then it's deducted pro-rata for the time that is left under your commitment. If a new company then wants to snatch you, they often agree to pay the outstanding amount if you make it past the probational period. Maybe you can ask for such a termination clause.
    It's common in accountancy most places too. If they invest for your study and give you time to pass exams, then they require you to work for them for a certain period or pay them back if you leave.

    However, in this case, it is not as clear. The OP paid for all his study himself, and I assume he is capable of contributing as a regular employee right away.

    The company is basically putting him on probation for 6 months and making him stay for 2 years (if he meets their standards). Unless he is in Germany just for training then he is there as an expat. How many expats would have this kind of clause?
    civil_servant likes this.

  6. #6

    Hi All,

    Please don't read too much into it. My transition to my new role is permanent, meaning there is a new staff that will take over my role. (It's either i begin my new role or I quit, this is clear).

    And as for Germany, I'll be working there and contributing to the project directly. But of course I need to be trained initially like any other new recruit. The company is not investing in any education/courses. Another note is that the German company is located in a small village town, they need desperately a software developer but is unable to find one.

    As a side note: My work contract is still with HK company, the German company is a subsidiary to the HK company.

    My main question is how will this clause hold up in court in the event of dispute?


  7. #7
    Quote Originally Posted by theaardvark:
    Hi All,

    Please don't read too much into it. My transition to my new role is permanent, meaning there is a new staff that will take over my role. (It's either i begin my new role or I quit, this is clear).

    And as for Germany, I'll be working there and contributing to the project directly. But of course I need to be trained initially like any other new recruit. The company is not investing in any education/courses. Another note is that the German company is located in a small village town, they need desperately a software developer but is unable to find one.

    As a side note: My work contract is still with HK company, the German company is a subsidiary to the HK company.

    My main question is how will this clause hold up in court in the event of dispute?
    That's a weird clause then.

    According to the Employment Ordinance you have the right to terminate a work contract at any time provided you give a notice period or pay wages in lieu.

    I suggest you ask your employer to get rid of that clause or, if you don't feel comfortable doing that, call the Labour department and ask them directly about it. They're usually quite good in responding to queries by phone and email.