My Employer is threatening me to take me to courts unless I pay one month salary AND serve one month notice. Am I reading the contract wrong?

I can’t afford a lawyer so before I proceed I need some advice.

Below is the contract excerpt that talk about non resignation.

“It is hereby acknowledged and accepted by you that due to the critical nature of the project for which you are being employed, the continuity of your performance of duties assigned to you during the agreed tenure of this contract is of the essence and you shall not be allowed to resign and or terminate your employment during the first six (6) months of this contract and that a notice period from you of one (1) month is required thereafter to resign from and/or terminate your employment.

Failure to comply with any aspect of this clause will result in the Company seeking compensation from you for a maximum amount of one (1) month of your salary.”

I’ve worked only for 4 months in this company

Should I pay one month penalty AND serve a one month notice?

Netizen’s comments

HR here –

It’s illegal for the company to not allow you to resign for the first 6 months. (https://www.mom.gov.sg/faq/termination/can-an-employer-reject-an-employees-resignation)

Since contract states that 1 month notice is required, you can either:

serve the 1 month notice

OR pay 1 month notice in lieu to your company.

Please don’t serve the notice and pay the notice in lieu. If they still insist on you doing both, do file a claim with TADM.

Hope this helps!