Termination compensation

That is an unreasonable clause. Its way too much. But, why did you agree to it in the first place? It will not stand in a court of law, but since its part of your agreement your employer can try to enforce it. The only way for you to fight this will be to get a good lawyer, but then thats probably more expensive than the cost of the clause itself.

I thought no contract can override the labour law? So if this is against the LMRA law then it shouldn't have any remit, no?

That is absolutely correct brightonguy. Law takes precedence.

But in order to get the process to work, an affected employee will need advise and counsel from the LMRA and also get a lawyer to push their case through.

Dear all,

If I may interfere, it's actually Ministry of Work you have to go to.
LMRA is the authority for work visas, not for labour law disputes.

Here is what the law says regarding compensation due to the employer :


"Article 112
Without prejudice to any obligation provided for in any other law, if the worker terminates the contract of employment he shall not be obliged to pay compensation to the employer except in the following cases:
1. If termination is made at an inopportune time to the circumstances of the work in a manner that makes it impossible for the employer to find an alternative qualified worker.
2. If the termination is intended to cause detriment to the employer.
3. If the termination causes gross damages to the employer.
In all cases, for the employer to be entitled to compensation, the worker's termination of the contract of employment must have been made without due regard to the notice period.
The competent Court shall estimate the compensation due to the employer in accordance with the provisions of this Article upon his request."

It is legit to put in the contract that the employer is allowed to deduct the cost of recruitment (Joining ticket, visa, etc..) if the employee resigns before one full year of employment. Nevertheless, the employer must be able to prove the reality of the expenses and this has to be limited in time. In the court's eye, the is a protection for the employer

To my knowledge, the deduction you mention sounds weird, maybe you could give us the full sentence ?
That would probably help...
The one month salary might be the legal compensation if you don't perform your one month notice period.
Again, with the exact terms of the contract, it would be more easy to help you...

Cheers

Olivier