SG worker furious after company cut S$300 from her allowance just 4 months into new job

SINGAPORE: A local worker has gone public with her frustration after discovering her company cut her S$300 monthly allowance mid-probation, all without her sign-off.

The employee, who took to the r/askSingapore subreddit, explained she joined the firm a mere four months ago. Then yesterday, management dropped the bombshell that from mid next year, S$300 would disappear from her allowance, converting it from a fixed sum into a variable one.

“My manager replied in the email saying I already accepted it and CC-ed top management for approval, but I never agreed or signed anything. HR also asked me to sign off the allowance addendum by today.”

“I’m still under 6 months probation, so a bit worried if I don’t sign they can just terminate me. What would you guys do? Accept first and start finding another job? Company also high turnover and WLB basically zero.”

‘Sign first, but get ready to run’

The comments section was filled with criticism, with several netizens pointing out that such an alteration effectively constitutes a brand-new employment contract.

One user said, “Any changes to your salary/allowance are effectively a new contract. You will need to accept it; if not, you will effectively resign. Your manager cannot accept [on your behalf],” one wrote.

Others advised her to jump straight into a job hunt. “Imagine having a manager to accept a pay cut on your behalf. This itself is a good enough reason to quickly find a job somewhere else before quitting,” one wrote.

Another added, “Sign first, but get ready to run. Find a new job ASAP. When companies do this, it’s a very clear sign that they are cutting costs, and most importantly, they don’t [care] about attracting new joiners anymore. With you being still in probation, it is also a very high chance they will not proceed after the probation.”

A handful of others, however, disagreed with this suggestion. Given how competitive the job market has become, they suggested it might be wise to hold onto her current position

“Times are hard now. Stick to it while looking for another job. Unless you got enough savings for 1 year, but that’s just me,” one netizen advised.

Can employers take away the benefits?

According to Human Resources Director Asia, if a benefit is written into the contract as a guaranteed term, it cannot be retracted or varied without the employee’s consent. These contractual obligations stand firm regardless of the company’s preferences.

The situation changes, however, when a benefit is discretionary. In that case, the company has the freedom to reduce or remove it entirely, as there is no contractual promise to protect it.

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