Foreign Worker Contract

Dear HR Community

We are in the construction industry and we hire many foreign workers.

Since there has been a high demand for them we have some who wish to sign a one-year contract with us instead of the usual two years. And some of them will leave before completing their contract.

So my questions are:

  1. Do you employ foreign workers on a one or two-year contract?
  2. Do you impose a penalty for those foreign workers who leave before completing their contract?

Please indicate your views using the form below.

Thank you in advance for your advice and comments.




Do you employ foreign workers on a one or two-year contract?

Two-year contract: 41.03%

One-year contract: 10.26%

More than two years: 15.38%

We don't hire foreign workers: 33.33%



Do you impose a penalty for those foreign workers who leave before completing their contract?

Yes: 13.64%

No: 63.64%

Sometimes: 18.18%

Never: 4.55%




If they have served a proper notice, even though there is a penalty stated in the contract, in the end, they will say no money, you will still have to let them go because otherwise you still have to bear their cost of living here. - Wendy

You can't stop people from leaving. What are the grounds you have to impose a penalty? Do they have a sign-on bonus? If not, then I don't see your grounds for imposing a penalty for leaving. you want to retain them and not deter them, isn't it? Consider a contract completion bonus to attract and retain workers. Just because they are foreign workers doesn't make them any lower than other employees. look at other benefits maybe. - Erin

I believe that it is illegal to impose a fine. - Aisha

Hard to impose penalties. Workers are covered by EA and have every right to resign if they wish to so long as they give sufficient notice. - Lucy

We offer a 'loyalty' bonus for those who stayed and completed the 2-year contract, subject to satisfactory performance. - Cherie

Please check on the legalities before considering the imposition of any penalties. - Naresh

If the foreign worker is hired through an agency, the Company paid for agent fees, technically the worker breached the contract. It also depends on the signed contract if the Company has stated the terms as if the foreign worker never completes the stated contract period, the worker will have to compensate the Company for the paid agent fees (Pro-rate), etc. - Jestrine

1. The contract duration is dependent on project requirements. 2. Even with a 1-year or 2-year contract, they can resign at any time by giving notice. 3. We do not impose any penalty on those who leave before the contract expires. 4. If the employer is paying a completion bonus, the employer may forfeit the bonus if they leave before completing the full-year contract. - Ann

You could propose a contract end bonus to retain their service to the contract end. - Jocelyn



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