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Wednesday, February 8, 2023
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EMPLOYEE HAS A CLAUSE IN HIS CONTRACT WHERE COMPANY CAN SUKA SUKA CHANGE HIS SALARY

Can I check if this clause in a contract is normal?

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“Company A may review your monthly salary, salary range, and variable components as appropriate and reserves the right to change your monthly salary, salary range, and variable components at Company A’s sole discretion.”

This is my first job so I don’t really know what to expect.

I’m slightly paranoid because I successfully negotiated the pay with them, so I’m just wondering if there’s a chance they’ll change my pay back to their original offered sum after I sign the contract?

Or is this something I don’t have to worry about? For additional context, it’s a government-linked company.

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Would be very grateful if someone with more experience could kindly advise me! Thank you so much in advance!

I need to clarify that I’m stupid because I actually already signed the contract and am starting work next Monday…

I don’t really know what to do now because it’s apparently not a normal clause, but I guess I should be prepared to leave (1-month notice) the moment they deduct my salary disingenuously? 🙁

Netizens’ comments

  • Companies are not allowed to change key employment terms at their sole discretion, especially not fixed terms like your base salary Amendments to your contract terms must only be made with consent of both parties. Check with the MOM if you’re unsure of your rights.
  • Hey, while I think it might be normal for a company to say they will annually/ bianually/ sth normal review your salary and any future increase is at sole discretion of company, I think the wording you quoted sounds like a potential loophole for company to basically void your renumerations without your knowledge or consent.
    Unless you have reasons to believe in your company’s goodwill, it isnt about whether they will or will not dock your pay, but that they can. I would be alarmed if I were you, it’s like a rental contract that says landlord can change your rent anytime. I would not want to live with that insecurity if a job is meant to provide security.
  • Kinda sus and you’re right to be concerned that the clause is in place for the company to reduce your salary later. I’ve worked before at several scammy companies and none of them had this clause, so it’s not super standard.
    Most important thing is how long is your notice period and are there non-termination conditions? If you are getting paid less and want to leave, how easily can you run?

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