Quit your job, then serve 6 months' notice? What to check before signing a contract

Employment experts weigh in on what makes a reasonable notice period, what can be negotiated and how workers may secure an earlier release after quitting.

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When Melanie (not her real name) was told she was being promoted, her initial excitement was dulled by one clause in her new contract: a six-month notice period.

She said that she was "extremely concerned" at first but did not dare negotiate the terms, since others who were promoted had accepted them.

Feeling she had little choice, the early childhood educator in her late 20s signed the contract and thought little more about the clause – until she decided to resign earlier this year.

Now serving her notice, Melanie asked not to be publicly identified.

With such a long notice period, she felt that it would be difficult to secure another job, since prospective employers might not be willing to wait months for her to start work.

"I had thought about resigning for over a year ... but now, I have to serve half a year before I can leave," she said. "I just need to tahan (endure) these six months."

Serving out a notice period can also become difficult when workplace dynamics change after a resignation.

While serving her two-month notice at a creative agency in 2022, Natasha (not her real name) found it hard to work with her boss, who woun't even look her in the eye. She did not want to be identified to avoid trouble with her former employer.

"Even during meetings, she'd talk to my manager and get her to relay messages to me instead of addressing me directly," the 32-year-old media professional recalled. "Her resentment after my resignation left a bitter aftertaste." 

The potential consequences of lengthy notice periods were highlighted recently after a company successfully sued a manager for not serving his full six-month notice period.

Human resource and legal experts told CNA TODAY that notice periods are just one of several employment contract clauses jobseekers may overlook, potentially affecting not only their current job but also their ability to move on to the next one.

Mr Jeon Chan, associate director for consumer sales and marketing at executive recruitment firm Ethos BeathChapman, said: "Salary is naturally the first thing people look at, but it is rarely the whole picture."

So what makes for a reasonable notice period, and can you negotiate it before you sign on the dotted line?

LOOKING BEYOND SALARY, READING THE FINE PRINT

Mr Sean Tong, managing director and head of Asia Pacific at recruitment consultancy Frazer Jones, said employment contracts may contain provisions that can significantly affect a person's career and mobility.

Besides the notice period, jobseekers should pay attention to terms covering working hours and overtime, probation and termination, bonuses and benefits, as well as garden leave – where employees remain on the payroll but stop working during part or all of their notice period.

They should also scrutinise restrictive clauses such as non-compete provisions, which may restrict them from working for competitors after leaving, and non-solicitation provisions, which may prevent them from approaching former clients or colleagues for business or employment.

These can affect workers even after they leave, as can confidentiality provisions that restrict the disclosure or use of sensitive company information.

Dr Ben Chester Cheong, a law lecturer at the Singapore University of Social Sciences, said that people should be wary of clauses that give employers unlimited power to reduce salaries or alter roles, as well as legal contracts such as training bonds imposed for routine workplace training.

"A clause making an employee personally liable for every mistake or business loss, regardless of fault or the circumstances, should also be treated cautiously," he added.

As for notice periods, Mr Tong from Frazer Jones said that they should be proportionate to the seniority of the position and the responsibilities involved.

"As employees become more senior, they typically oversee larger teams, manage strategic initiatives and hold greater institutional knowledge. Longer notice periods provide organisations with sufficient time to identify a replacement and ensure an orderly handover."

As a rule of thumb, he suggested about one month for entry-level and junior employees, two to three months for mid-level professionals, and three to six months for senior leaders and executives.

Mr Gerald Tan, a project director from Avodah People Solutions, a career services firm, warned that excessively long notice periods could hamper a worker's job search.

"This makes it hard for someone to make a transition, as many potential companies will not wait three months for you," he told CNA TODAY.

So why do companies impose lengthy notice periods or other onerous terms in the first place?

Dr Cheong said: "Companies may use such clauses because standard-form contracts are administratively convenient, because they wish to discourage employees from leaving, or because they want the widest possible protection against commercial risks.

"The underlying concern may be legitimate, but the contractual protection should still be proportionate to the role and the actual risk posed by the employee."

Ms Amarjit Kaur, head of employment at law firm Withers KhattarWong, said that notice periods are part of a contractual agreement between a job holder and an employer, and the law does not define what constitutes an "unreasonably long" notice period.

However, the Employment Act states that if there is no contractual notice period, the notice period should be up to four weeks, depending on length of service.

THE ART OF NEGOTIATION

The thing to note is that notice periods and other contract terms are not necessarily set in stone.

Mr Chan from Ethos BeathChapman said: "Employment contracts are not always 'take it or leave it'.

"Senior professionals, in particular, often negotiate notice periods, restrictive covenants or sign-on arrangements before accepting an offer."

Doing so, however, requires a "balanced approach", he added.

Seniority is not the only factor that determines whether a candidate has room to negotiate.

Mr Tong from Frazer Jones said that although the hiring market is now "more employer-led" than it was several years ago, employers remain willing to negotiate for strong candidates with highly sought-after skills or experience.

"My advice is to ask questions and seek clarification before signing the contract. Once an agreement has been executed, negotiating changes becomes considerably more challenging."

Having an open and professional conversation with the employer is the most effective approach, he added.

"Rather than simply objecting to a clause, candidates should explain why it presents practical challenges and propose a reasonable alternative."

Ms Amarjit noted that some companies, especially large organisations, may use standardised employment contracts, which may leave less room for negotiation.

However, even after a contract is signed, negotiations can still take place.

For instance, companies may be willing to let employees shorten their notice period after a resignation. A notice period may also be waived by mutual consent between employer and employee.

Whether changes are negotiated before or after signing, Ms Amarjit stressed the importance of recording any agreed amendment in writing, such as through an amended contract or addendum.

"Most of these conversations may happen verbally, but for any agreement between both parties to amend a notice period to hold its weight in court, it has to be in written form.

"This can be an email, or some form of writing that shows both parties agreed to the new terms."

GETTING THROUGH THE NOTICE PERIOD

If a shorter notice period cannot be agreed upon, employees still have to navigate their remaining time at the company.

And although slacking off during a notice period may be tempting, a staff member's final weeks can leave a lasting impression on employers and colleagues, experts said.

"Your reputation follows you throughout your career, particularly in industries where networks are closely connected," Mr Chan from Ethos BeathChapman said.

"Many find themselves in situations where former managers later become clients or where candidates return to previous employers in more senior positions. Leaving professionally preserves future opportunities that may arise from past connections."

However, in some cases, employers may decide that there is little reason for an employee to continue working. Instead, they may place the worker on garden leave.

Another option when one cannot negotiate a shorter notice period is to offer payment in lieu of notice, where an employee pays the salary owed for the unserved portion of the notice period, Ms Amarjit said.

"Some people do ask their future employers to 'buy them out'," she added. That means having the future employer cover the salary owed during the notice period with the existing employer, so that they can start earlier.

Mr Chan said that workers can buy out part or all of their notice period. They may also use their annual leave to offset part of the notice period, bringing forward their last day of employment.

For jobseekers, then, scrutinising a new contract means looking beyond the salary – and considering how its terms could affect how easily you can leave the job down the road.