Hi this is my first time on The Forum, I apologize in advance for the length and or formatting of this post, but I require urgent assistance.

I recently relocated from Durban to Gauteng to work for an IT company, I commenced employment in April and this (August) is my 5th month there.

My employment at this company is subject to a 6 month probation period, but as yet I have had no performance reviews or any information or feedback on my chances of being kept permanent. The company is paying me quite a low salary for Johannesburg and it is becoming increasingly difficult to stay here, I have been offered other jobs to relocate back to Durban but here is where my predicament comes in.

The employment contract states that there is a penalty for leaving due to training costs encumbered by the employer. The said "training" is basically in-house formal sessions with permanently employed more experienced staff "training" the probation staff. Any other training is the employee being given access to documents to learn on your own time.

I will quote the probation clause and penalty clause from the contract, please excuse the length but I think it's required for context.

5. PROBATION

5.1. The employee’s appointment is subject to a period of 6 months’ probation.

5.2. Upon expiration of the probationary period, the employee’s appointment may be confirmed as a permanent employee or terminated.

5.3. In the event that the employee’s services are terminated, it will be done in accordance with the requirements of the Labour Relations Act of 1995.

10. TERMINATION OF EMPLOYMENT

10.11. This clause 10.11 up to clause 10.15.6 shall only apply in the instance of terminations of employment during the initial training period of the employee and one year thereafter, which period will be a period of 36 months.

10.12. The employer shall, in order to advance and promote the training and experience of the employee, provide for the employee to attend extensive in-house training.

10.13. The attendance at this training by the employee shall be considered to be in-occupation training of the employee.

10.14. It is recorded and agreed that the total value of the in-occupation training contemplated by this agreement, which includes time, expertise and actual disbursements expended by the employer, shall be a sum of R 663,000.00. The table below reflects the training costs over the three (3) years.

Year 1 [Mentoring and Training R 320 000] [Local Course R 13 000] [International Course] [College Accredited Course] [Year 1 Total R 333 000]
Year 2 [Mentoring and Training R 160 000] [Local Course R 14 000] [International Course R 35 000] [College Accredited Course] [Year 2 Total R 209 000]
Year 3 [Mentoring and Training R 96 000] [Local Course R 15 000] [International Course] [College Accredited Course R 10 000] [Year 3 Total R 121 000]
Total cost of Training: R 663 000.00

Note: The costs are calculated for 2015 at the base cost of 2015 and shall be escalated by CPI each year.


10.15. In exchange for the in-occupation training provided by the employer to the employee in terms of this agreement, the employee agrees and undertakes as follows:

10.15.1. the employee shall serve the employer for a minimum period of at least 3 (three) years;

10.15.2. in the event of the employment of the employee with the employer terminating for any cause or reason whatsoever, be it resignation, dismissal or any other form of termination of employment, prior to the expiry of the time period in terms of clause 10.15.1 above, then and in such event the employee shall immediately be obliged and required to pay the sum of (i) R 333,000.00 in the event of the employee serves the employer for a period of less than 1 (one) year completed service; (ii) R 542,000.00 in the event of the employee serves the employer for a period of less than 2 (two) years completed service; and (iii) R 633,000.00 in the event of the employee serves the employer for a period of less than 3 (three) years completed service, to the employer;

10.15.3. the sums set out in the above paragraph shall be immediately due, owing and payable by the employee to the employer with effect from the date of termination of the employment of the employee with the employer;

10.15.4. upon expiry of this 3 (three) year time limit in terms of this agreement, the employee’s liability to pay the said sums to the employer shall terminate and be expunged;

10.15.5. insofar as the payment by the employee to the employer in terms of this agreement may be considered or deemed to be a penalty clause as contemplated by law, the employee hereby and herewith acknowledges and agrees that such penalty clause is fair and reasonable, and that should the employee at any stage wish to allege the contrary, the employee shall have the onus to prove that such penalty clause is not fair and reasonable;

10.15.6. this agreement also serves as written consent by the employee in terms of the Basic Conditions of Employment Act to deduct the amount, or any part therefore, payable by the employee to the employer in terms of this agreement, from any final payment, salary or benefit due by the employer to the employee upon termination of employment by the employee with the employer.
Since I have only been with the company about 5 months out of my 6 months probation I would like to know that if the employer terminates my employment after the probation period or I resign before the probation period, am I liable for this penalty? The money stipulated in the repayment for Year 1 is about double what my annual cost to the company is and I have only had "in-house training". I have not been given the opportunity to attended local, international or college accredited courses.

Any assistance will be greatly appreciated!