I am an expat and have been working with my current employer for 3 years and 4 months. My contract was for 2 years and renewable for an unlimited period. Last month I gave my 3 months notice of intention to terminate my contract, but my employer is asking me to pay them 5 months of my salary as penalty, because, according to them my contract should be terminated on the same date I started working for them which is in April next year.

My question is, does my employer have the right to demand payment for those 5 months (from Nov-April) as penalty? I believe that I have the right to get a release and half of my indemnities since I have been working for more than 3 years.

Name withheld

Answer: The employer is wrong. According to the Ministry of Social Affairs and Labor decision, the company can’t keep you if you don’t want to stay with them after three years of service, even if it has hired you from abroad.

Secondly your contract was of two years, so what is the company talking about. You are right and according to the new Labor Law you are entitled to half the indemnity.

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