I work by for an employer since last 3 years they had asked us to sign employment service agreement which said we cannot resign in 2 years of employment if we do than we are supposed to pay them 3 months salary they have taken PDC blank dated cheques.
It's almost going to be 3 years in service in this August.. i aspire to move or relocate to Canada and have been giving interviews and have few lined up interview.
I want to officially resign but however right now it's uncertain as I don't have a ready job in hand.
I want to understand till how much legally affect me or what actions will i have to face if I resign with one month notice period if incase i secure job in Canada I am flying on visitors in July 2023 and have taken official leave for 20 days
From India, Mumbai
It's almost going to be 3 years in service in this August.. i aspire to move or relocate to Canada and have been giving interviews and have few lined up interview.
I want to officially resign but however right now it's uncertain as I don't have a ready job in hand.
I want to understand till how much legally affect me or what actions will i have to face if I resign with one month notice period if incase i secure job in Canada I am flying on visitors in July 2023 and have taken official leave for 20 days
From India, Mumbai
You have been working with this company for the last three years. Your contract of employment stipulates that you should not leave the company in 2 years. If you resign with in 2 years, you will have to pay 3 months salary. I am afraid, how do these conditions apply to you, because you have already crossed the mandatory service of two years?
A condition of service that you should not leave in 2 years is illegal but there can be a notice period enforceable by law. Though no employer may go for a legal fight with an employee leaving you cannot over rule the possibility of your background verification/ exit formalities going negative once you decide to leave. Therefore, it is always good if you leave in good terms only. Anyway, since you have started your search for a Canadian assignment, go ahead with it.
From India, Kannur
4239A condition of service that you should not leave in 2 years is illegal but there can be a notice period enforceable by law. Though no employer may go for a legal fight with an employee leaving you cannot over rule the possibility of your background verification/ exit formalities going negative once you decide to leave. Therefore, it is always good if you leave in good terms only. Anyway, since you have started your search for a Canadian assignment, go ahead with it.
From India, Kannur
Hi,
Where ever possible try to get relieved properly. As you claim you are about to complete 3 years discuss with your Employer. Mostly they will agree for proper relieving as you are nearing 3 years. Also before you leave please collected the 3 undated cheques which is very important. We don't know the background of service agreement you entered into and what type of supporting document you gave along with undated cheques. Whether service agreement / submission of undated cheques is legal or illegal is secondary but Employer can harass you by depositing the cheques with the bank knowingly that the same will be dishonored. So please exercise utmost caution.
From India, Madras
Where ever possible try to get relieved properly. As you claim you are about to complete 3 years discuss with your Employer. Mostly they will agree for proper relieving as you are nearing 3 years. Also before you leave please collected the 3 undated cheques which is very important. We don't know the background of service agreement you entered into and what type of supporting document you gave along with undated cheques. Whether service agreement / submission of undated cheques is legal or illegal is secondary but Employer can harass you by depositing the cheques with the bank knowingly that the same will be dishonored. So please exercise utmost caution.
From India, Madras
Thank you for the comments .... Really appreciate also to add I am eligible for Incentives earned for the last financial year which is a pretty decent amount usually they disburse this during July or August.it is the same time I am leaving for Canada.If required i can share a copy of agreement to this thread which can give you idea
From India, Mumbai
From India, Mumbai
Can u pls advise if they can hold my incentive or either adjust against the salary incase i don't serve notice period during resignation.... As per law is it breach and if yes any serious consequences
From India, Mumbai
From India, Mumbai
Incentive as a part of service condition cannot be forfeited unless there is any valid reason. In some cases, it will be specifically written that the incentive is payable to those who remain in service. This is also an incentive to remain with the company and as such it can be forfeited if you are not in service at the time of its disbursement.
In the case of a workman category employee, he will get the protection of law and he can approach the appropriate authority but in all other cases, the decision of the employer will be final and you cannot challenge it in any dispute redressal machinery like Labour Officer, Labour Court or Tribunal. Therefore, this matter should be handled very carefully with patience. Only an amicable settlement will give you the expected results. Having a quantifiable performance in hand, you can very well demand the incentive as a matter of right.
From India, Kannur
In the case of a workman category employee, he will get the protection of law and he can approach the appropriate authority but in all other cases, the decision of the employer will be final and you cannot challenge it in any dispute redressal machinery like Labour Officer, Labour Court or Tribunal. Therefore, this matter should be handled very carefully with patience. Only an amicable settlement will give you the expected results. Having a quantifiable performance in hand, you can very well demand the incentive as a matter of right.
From India, Kannur
Hi,
Adding to the valid points shared by Mr.Madhu unlike Abroad, Indian Employers, especially small and mid size Employers pay less attention /importance to Labour Laws till things get complicated legally. What ever the good services rendered by the employee & irrespective of number of years contributed.. once submitted resignation Employers tend to develop some sort of resentment against the employee ( I am not generalizing all Employers - exceptions are there always). In such a scenario expecting for benefits like incentives which were not part of salary that even without completing proper notice period will be a case of uncertainty. It depends on the Employer.
One thing I just want to ask you , when you know that your Employer will disburse incentives in next couple of months why you want to take hasty move now. If you haven't submitted the resignation, if you have time for relocation to Canada why not you can wait for couple of months so that you will get the benefits and also your Agreement period will get over. Just my suggestion. Based on your comfort you need to take call.
From India, Madras
Adding to the valid points shared by Mr.Madhu unlike Abroad, Indian Employers, especially small and mid size Employers pay less attention /importance to Labour Laws till things get complicated legally. What ever the good services rendered by the employee & irrespective of number of years contributed.. once submitted resignation Employers tend to develop some sort of resentment against the employee ( I am not generalizing all Employers - exceptions are there always). In such a scenario expecting for benefits like incentives which were not part of salary that even without completing proper notice period will be a case of uncertainty. It depends on the Employer.
One thing I just want to ask you , when you know that your Employer will disburse incentives in next couple of months why you want to take hasty move now. If you haven't submitted the resignation, if you have time for relocation to Canada why not you can wait for couple of months so that you will get the benefits and also your Agreement period will get over. Just my suggestion. Based on your comfort you need to take call.
From India, Madras
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