Employment Contract

I have recruited 1 person and having signed contract with him but later on realized that that position has been cancelled. Do I need to pay this person? If yes, how much should I pay? I checked the MOM website but it only talks about the opposite situation where if the candidate has signed the contract but decide to turn down the job, and MOM indicates that becuase the employment relationship hasn't really started yet so there is nothing that the employer can do about it.
However, when I called MOM regarding my issue, they referred me to a lawyer and told me that the candidate can sue me if he/she feels like to. Thus the situation doesn't seem too fair on the employer's side. Could you please kindly advise me on this?

Officially, the relationship between employee and employer have not started, but yes, the employee can file civil suit and bring it to court. My advice is you may want to discuss with the employee and negotiate a compensation to pay him. Make sure you prepare a letter for him to sign to accept the compensation and acknowledge that he/she will not pursue further on the matter.