Good day. I seek guidance regarding my decision to terminate a 2-year employment contract after serving 1.5 years. I'm now serving the two-month notice period, and HR sent me the breakdown of the company compensation.
The contract stipulates that if an employee resigns before completing the full term, they are obligated to pay the salary in lieu of the remaining employment period. In my case, this would amount to 5 months' salary.
I am inquiring about the legality of this provision and whether it is permissible to settle the compensation in instalments.
Your professional advice on this matter would be greatly appreciated.
From Singapore
The contract stipulates that if an employee resigns before completing the full term, they are obligated to pay the salary in lieu of the remaining employment period. In my case, this would amount to 5 months' salary.
I am inquiring about the legality of this provision and whether it is permissible to settle the compensation in instalments.
Your professional advice on this matter would be greatly appreciated.
From Singapore
In India this kind of clauses in the appointment order will be invalid. However, depending upon the nature f employment, the functional responsibilities the employee is having, the contract can be made enforceable. Accordingly, if you have been working as a manager with functional responsibilities of a manager by all means and nit just by designation, the contract is final and the employer can recover any cost from the employee. At the same time, iif you do not have any functional responsibilities of a manager, you would fall under the scope of Industrial Disputes Act and your employment will be protected. As such, the clauses of appointment order (contract of employment) will not supersede the provisions of ID Act.
From India, Kannur
4246From India, Kannur
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