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Employment bond related to IBBM/GP4

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asked on Aug 29, 2014 at 20:53
by   humbleemployee
I am an employee of a bank in Malaysia with a salary that exceeds RM 2000.00.

I have been employed by a bank in Malaysia lately (as at April 2014)and have come to realize that the bank has imposed a bond on me in reference to the BNM/GP4 guideline on staff training (below)

​5.3 BNM/GP4: Guidelines on Staff Training Fund
In an attempt to discourage “staff pinching” among financial institutions and to promote
industry-wide training and manpower development, the Guidelines on Staff Training
Fund (STF) was established in 1985. As a deterrent against recruiting experienced
personnel from another financial institution, the hiring institution is required to contribute
a maximum of 6 months of the personnel’s new gross salary to the STF. The STF is
applicable if the recruitment is made within 6 months of the staff’s resignation and whose
previous salary exceeds RM2,000 per month. In 1993, rules pertaining to “staff pinching”
were liberalised where “staff pinching was redefined to refer to the recruitment of new
staff who were not approved for release by the previous employer. All the contributions
to the STF are channelled to support training courses for banking personnel, in
collaboration with Institut Bank-Bank Malaysia (IBBM).

I would like to seek clarification on the bond the bank imposes in my employment letter as below:

" There will be a bond related payment of IBBM for staff training fund totalling of RM xxxxxxx within [one month] of the commencement date. In the event that you resign within twelve months of the commencement date or your employment is terminated for cause (including without limitation under clause 12) during this twelve months period you shall immediately repay to the bank as a debt the full amount (net of any deduction that were applied to it)."

I have intentions of leaving the organization as I have a family issue overseas which requires my attention. The bank however is insisting that I will be charged a hefty sum for my departure.

I have not secured any employment elsewhere and would be very hard pressed financially already. However due to family commitments, i would have to proceed to leave the said organization.

I cannot afford the sum mentioned and would like to seek your advice.
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2 Answers

answered on Sep 11, 2014 at 17:04
by   arun1011
The issue here is whether they sent you for training. If they did, then reading clause on bond, you would be legally bound to pay the amount they had spent on your training. However if the reason your leaving is due to family situation, i suggest you write to the Bank and inform them about your situation and request them to waive the training payment.
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answered on Sep 11, 2014 at 19:24
by   humbleemployee
Dear Arun, thanks for your reply. But the bank didn't send me to any training.
By reading on the definition of clause itself, it stated that is a fund that avoid bank to pinching staff from one to another. If the bank does, the bank has to contribute the 'penalty' into this IBBM's "training fund".
Hence, I'm not sure is this "training fund" under my liability to pay back the bank now. Do I have any way to appeal for this?
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