I am working in an Indian manufacturing company as a senior sales manager. I joined only 4 months ago. I have just resigned and provided a month's notice as per the signed contract and requested for a relieving. My HR has responded, stating that I can be relieved within a month but only after paying 2 lacs as hiring expenses, which were incurred by the company in hiring me. This clause regarding hiring expenses was never mentioned before and is not a part of my contract. When I inquired, the HR mentioned that the company is not performing well and has incurred a loss of 2 lacs due to my resignation, as it had already paid the consultant 2 lac rupees. (All communication is via email from my HR).
Please help. I am still serving my notice period. What should I do?
From India, New Delhi
Please help. I am still serving my notice period. What should I do?
From India, New Delhi
The amount sounds exorbitant! The notice period buy-out is applicable only for the number of days that aren't served. Recovering the cost of hiring from the employee isn't legal. The amount spent on the hiring consultant is between the employer and the consultant and cannot be recovered from you. Even recovering the cost of training that is often included in the Onsite Travel Agreement is not completely legal. Please consult a lawyer. You need to prepare a well-drafted letter on paying only for what is left to be served and nothing beyond that. In case the employer doesn't comply, you can take it to the Labour Commissioner.
Wish you all the best!
From India, Mumbai
Wish you all the best!
From India, Mumbai
The company knows that what they are asking is illegal. Cost of hiring is part of business expenses. They cannot pass on this to the employee. Follow what is written in your contract for the notice period. As mentioned above, consult a lawyer and send a polite but firm letter reiterating that you have adhered to the offer letter terms and will not bear any further expenditure of any nature being claimed by the company. Probably the company is hoping you will negotiate and then reduce the amount as any amount claimed from you is a bonus for the company. Hold firm and refuse to make any such payment beyond what is stipulated in the offer letter which you have agreed upon.
From India, Pune
From India, Pune
Dear Josy,
This is in addition to what learned members have said in their post. At this stage, tell the HR department that if they do not release the relieving letter, you will be forced to make a formal complaint to the labor office. Whatever money they spent on recruitment was their own decision. You have nothing to do with it.
Think of the opposite. Suppose your performance had been too bad or you had caused some big problem for them. Would management not have terminated you? Reserving the right of termination on one hand but initiating the recovery process in case the employee resigns is nothing but double standards. You may not give much importance to them.
What will happen if you do not get the relieving letter? A relieving letter showing employment for only four months is useless. Disclosure of the fact that you had resigned just after four months could cause more harm than good. Nevertheless, getting a "No Due Certificate" is important. Your ex-company may try to fix you in some other issue.
Thanks,
Dinesh Divekar
From India, Bangalore
This is in addition to what learned members have said in their post. At this stage, tell the HR department that if they do not release the relieving letter, you will be forced to make a formal complaint to the labor office. Whatever money they spent on recruitment was their own decision. You have nothing to do with it.
Think of the opposite. Suppose your performance had been too bad or you had caused some big problem for them. Would management not have terminated you? Reserving the right of termination on one hand but initiating the recovery process in case the employee resigns is nothing but double standards. You may not give much importance to them.
What will happen if you do not get the relieving letter? A relieving letter showing employment for only four months is useless. Disclosure of the fact that you had resigned just after four months could cause more harm than good. Nevertheless, getting a "No Due Certificate" is important. Your ex-company may try to fix you in some other issue.
Thanks,
Dinesh Divekar
From India, Bangalore
This is not legal on the part of HR to ask you to pay hiring expenses. You should refuse to pay this amount politely citing your appointment terms and conditions. Yes, you must pay the shortfall of notice period.
Raakesh Dixit
Labour Law Consultant
919810509965
917533809000
From India, Delhi
Raakesh Dixit
Labour Law Consultant
919810509965
917533809000
From India, Delhi
Hello Josy Menazes,
I would go one step ahead of what (Cite Contribution) mentioned: "The amount sounds exorbitant!"
It's NOT an amount issue at all. It's that this Company just has misplaced notions of what hiring is all about.
Generally, every Company which hires through Agencies/Consultancies has a Standard Clause in their Agreements—called Replacement Guarantee Clause. If the candidate leaves before a specified period of time—for whatever reason(s), then the Agency has to either refund the Fees paid OR give a free replacement. Usually, it's 3 months. In your case, this either doesn't seem to be there OR has crossed the 3 months timeline where the Agency COULD be refusing to give a replacement.
Hence the Company wants YOU to become the scapegoat.
It's BETWEEN the Company & the Agency... none of your business to get into what's essentially a relationship issue between them.
Generally... at least in the very few instances that we experienced... the Agency gives a replacement for a lower one-time fee rate for cases that are technically & legally beyond the Replacement Clause effective timeline, but ETHICALLY not really so [after all it's not a large time span/gap between 3 months & 4/5/6/ months].
Coming to 'what to do', since you have the complete situation in writing, suggest informing them THROUGH WRITING that you are being advised to go legal & put everything that is still only verbal into writing... basically generating a written record of the complete situation. Going by the general human psychology, the Company would hesitate to move forward, UNLESS they have something against you OR you have not put all the facts here in this posting.
And now coming to ANOTHER ANGLE. Don't you think YOU too are at fault for resigning so soon after joining? Unless there are very strong reasons to do so? Especially at your seniority?
Suggest giving this a thought... while technically none can stop you from joining elsewhere whenever you wish to, in the long run, you would be doing your career more damage than good when you jump without strong reasons/justifications in such a fashion.
Rgds,
TS
From India, Hyderabad
I would go one step ahead of what (Cite Contribution) mentioned: "The amount sounds exorbitant!"
It's NOT an amount issue at all. It's that this Company just has misplaced notions of what hiring is all about.
Generally, every Company which hires through Agencies/Consultancies has a Standard Clause in their Agreements—called Replacement Guarantee Clause. If the candidate leaves before a specified period of time—for whatever reason(s), then the Agency has to either refund the Fees paid OR give a free replacement. Usually, it's 3 months. In your case, this either doesn't seem to be there OR has crossed the 3 months timeline where the Agency COULD be refusing to give a replacement.
Hence the Company wants YOU to become the scapegoat.
It's BETWEEN the Company & the Agency... none of your business to get into what's essentially a relationship issue between them.
Generally... at least in the very few instances that we experienced... the Agency gives a replacement for a lower one-time fee rate for cases that are technically & legally beyond the Replacement Clause effective timeline, but ETHICALLY not really so [after all it's not a large time span/gap between 3 months & 4/5/6/ months].
Coming to 'what to do', since you have the complete situation in writing, suggest informing them THROUGH WRITING that you are being advised to go legal & put everything that is still only verbal into writing... basically generating a written record of the complete situation. Going by the general human psychology, the Company would hesitate to move forward, UNLESS they have something against you OR you have not put all the facts here in this posting.
And now coming to ANOTHER ANGLE. Don't you think YOU too are at fault for resigning so soon after joining? Unless there are very strong reasons to do so? Especially at your seniority?
Suggest giving this a thought... while technically none can stop you from joining elsewhere whenever you wish to, in the long run, you would be doing your career more damage than good when you jump without strong reasons/justifications in such a fashion.
Rgds,
TS
From India, Hyderabad
Thank you all!
Just need to understand which are the email IDs in our Indian legal system to whom I need to mark my case for getting a quicker reprieve. My company is based out of Andheri East, Mumbai.
Will any political influence help in this case? I do not want to go to a labor court as it involves time for visiting the courts, etc., which I don't want to spend on this silly HR case. Also, our company has a large legal team whose core job, unlike mine, is to take care of these labor-related issues.
What should I do if I do not get relieved on the last day of my notice period? They may ask that I need to cough up the 2 lakhs and take signatures of mine on documents stating that 2 lakhs are due to be recovered for providing the relieving.
Regards,
From India, New Delhi
Just need to understand which are the email IDs in our Indian legal system to whom I need to mark my case for getting a quicker reprieve. My company is based out of Andheri East, Mumbai.
Will any political influence help in this case? I do not want to go to a labor court as it involves time for visiting the courts, etc., which I don't want to spend on this silly HR case. Also, our company has a large legal team whose core job, unlike mine, is to take care of these labor-related issues.
What should I do if I do not get relieved on the last day of my notice period? They may ask that I need to cough up the 2 lakhs and take signatures of mine on documents stating that 2 lakhs are due to be recovered for providing the relieving.
Regards,
From India, New Delhi
Team CiteHR, Awaiting your revertal/suggestion on the last post sent... Regards..
From India, New Delhi
From India, New Delhi
"2. Will any political influence help in this case?"
Do not get into this racket.
As far as your last query is concerned, it is quite possible that the company will insist on Rs2 lakhs being shown as outstanding in your documents. The only way is to refuse and move out without relieving documents. On the other hand, put this demand in writing and highlight its illegality and make your intention of not paying clear. Send this to top management. In any case, your exit will be a troubled one. There are no quick legal solutions to this.
From India, Pune
Do not get into this racket.
As far as your last query is concerned, it is quite possible that the company will insist on Rs2 lakhs being shown as outstanding in your documents. The only way is to refuse and move out without relieving documents. On the other hand, put this demand in writing and highlight its illegality and make your intention of not paying clear. Send this to top management. In any case, your exit will be a troubled one. There are no quick legal solutions to this.
From India, Pune
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