Agreement

Posted by penarth (472 days ago)

I was made to sign a NDC agreement after leaving my job in agreement that I would receive a set sum of money on the date the agreement was signed. I faxed the agreement through on the date of signing but I did not receive the money until a week later. The sum was less taxes so the sum in the agreement that I signed and the payment received differed. In the agreement it did not state anything about taxes being paid on the money I was due to receive. Is this agreement valid as the sum was different and the date of payment was a week later than we agreed?

(I am based in Hong Kong)

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Posted by Twotails32 (471 days ago)

It really depends on the terms of the NDC agreement you signed.

If there was an express term stating the amount of money you would receive then you may be able to sue for the whole amount.

If there is no express term then you should consider was it implied that they would pay the tax or was it implied you should pay the tax.

It is likely if you were to sue the courts would consider the intention not the actions of the party, this intention is judged on the 'reasonable man view'.

Consider the cost of litigation. You may try and scare them with the threat of litigation but it would depend on the contents of the NDC you signed.

(I am based in Hong Kong)

Posted by penarth (471 days ago)

Thanks for your advice Twotails 32 I really appreciate it. The exact wording says " Employer agrees to pay to employee as severance pay the sum of $XXXXX at the time this agreement is fully signed." I did not receice this sum nor did I receive it until 6 days after faxing it through on the signed date. I just want to check where I stand legally for future reference as a pose to taking action right now and wether this agreement would have an validity in the future if it were to be broken.

(I am based in Hong Kong)

Posted by associates (470 days ago)

The fact of payment a week later is not going to void the agreement unless it was specifically an essential term; the payment of a lesser amount has more legs. However, there is a real question as to whether any TAX is owing on such a payment; i.e. you may have a claim for a refund. In addition one would have to review the actual NDC to see whether it is binding, it may be too broad or unreasonable or contrary to public policy, etc.

We suggest a meeting to review the documents and your tax status......our initial interview fee is HK$2,500.

Weir & Associates
Solicitors & Notaries
2108 Gloucester Tower
The Landmark
15 Queens Road Central
Hong Kong
Tel : 2526-1767
Fax : 2868-3568
email : weirlaw@hongkonglaw.com
www.HongKongLaw.com/weirlaw

(I am based in Hong Kong)

Posted by adelaide (468 days ago)

Maybe consider whether the company usually deducted tax from your regular income payments. If not, then you have strong standing to say that the severance pay should be inclusive of relevant taxes and you are resonsible for this payment. Depending on the amount (must be under 50,000) you could try to claim at small claims tribunal in Hong Kong. That is relatively inexpensive.

(I am based in Hong Kong)