New Delhi | 19 Jun, 2019 (3 years, 9 months ago)

Employment and Labour Laws

I feel cheated by my previous employer. There is a contradiction.

When I was being recruited for the job, I was not told about any bond. But while signing the appointment letter they mentioned a clause which demanded a 2yrs of service or otherwise the company would be eligible to recover a sum proportionate to the amount spent against training or giving experience for the job. Since it was not discussed before, I raised this issue I was verbally assured that this clause is not exercised and the company recovers the cost from the retention bonus which is mentioned in the ctc. There is another clause under the heading "termination of service" it states that "this agreement may be cancelled in case either of the party gives a one month notice in advance". When I resigned I was asked to return the gross salary drawn during the probation period. And I was offered no explanation comparing both the clauses. At te end when I asked to relax the amount against the work I did in which the company had given me no training, I was relaxed to 40% of the amount. Without any discussion or proper explanation to the clauses. I therefore feel that the amount I paid to be relieved from the job was unjust. Kindly suggest if this is a strong enough case.

Dear Sir,
In such cases you have two options one is approaching Labor Commissioner and second is approaching Civil Court.

20 Jun, 2019 | 07:57

If the previous employer mislead you, then yes you do have a case. But you have to prove it. Generally employment agreements include a restraint of trade clause to protect their own interests. To be enforceable, employer must prove the clause is reasonable. As per the Bonded Labour System (Abolition) Act, 1976 no employee is allowed to work for a particular tenure in a company out of compulsion. Such agreements cannot be legally enforced. In order for an employment bond to be enforceable, it has to be executed on stamp paper. Also, under section 27 of the Indian Contract Act, 1872 no employer is permitted to include a restriction, directly or indirectly forcing the employee to work for the employer. Please mail me a a copy of the letter. I will into the terms and conditions and give you an opinion. Do get in touch with me for any further details. Looking forward to your response.

Asker 20 Jun, 2019 | 20:35

Thank you for the advice so far. Is it possible for you to share your email ID, so that I can mail the copy of appointment letter? I am mentioning the two clauses which I feel are contradictory: 7. TERMINATION OF SERVICE This agreement may be terminated by: a. Either party giving one (1) months’ notice in writing or one month's salary (Part A of the salary components, given in the annexure) in lie of notice during probationary period. 12 Others c. It is agreed that you will be learning the trade/work and the company will be making an investment during the course of such a learning process to make you productive for the given job. In case, you leave or abandon the job within a period of 2 years, then we will be entitled to recover as liquidated , damages, a sum proportionate to the amount spent on providing training /giving experience for the job. **** Kindly note that I was in probation while resigning from the job.


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