Hi Friends,
I had been employed to a company 2 yrs back. I was with them for 4 and half month. i had to quit due to personal issues and had also briefed my boss on the same via mail and personally which he was ok.I had also mailed statin that i ll pay the notice period for i cant serve the same,which they had also acknowledged & replied that they will get back.But till date there was no communication from them statin the amt i need to pay.
Now suddenly after 2 yrs i have got a summon from court asking me to be present in court for an enquiry.
I has discussed abt the same to the HR of the company for which they finally said ok,but demanded a sum of 50000 to be paid.wherein only a sum of 4000 is coming towards my notice period.bal they are asking for the company expenses towards legal proceedings against me.
Can a company ask for the money spent for legal proceedings against the employee , which the company has spent ????
Please let me know how should i proceed
Can i file a case againmst them for asking money to wave off the case
Kindly suggest
From India, Mumbai
I had been employed to a company 2 yrs back. I was with them for 4 and half month. i had to quit due to personal issues and had also briefed my boss on the same via mail and personally which he was ok.I had also mailed statin that i ll pay the notice period for i cant serve the same,which they had also acknowledged & replied that they will get back.But till date there was no communication from them statin the amt i need to pay.
Now suddenly after 2 yrs i have got a summon from court asking me to be present in court for an enquiry.
I has discussed abt the same to the HR of the company for which they finally said ok,but demanded a sum of 50000 to be paid.wherein only a sum of 4000 is coming towards my notice period.bal they are asking for the company expenses towards legal proceedings against me.
Can a company ask for the money spent for legal proceedings against the employee , which the company has spent ????
Please let me know how should i proceed
Can i file a case againmst them for asking money to wave off the case
Kindly suggest
From India, Mumbai
Sruthi,
Company has the right to sue you under the following circumstances : -
Understand you have not been relieved by issue of relieving letter / service certificate as proof for your service rendered. This stresses on the fact that any communication to you should be initially served on a Internal Memo , if not replied convincingly, should be served with a legal notice seeking reply, if company is till not convinced, they can summon you from court demanding to be present in court for an enquiry.
The company cannot, at any cost claim for the money spent for legal proceedings against the you, which will not stand valid in the eyes of law.
They can argue on the claim for "Notice Pay" Due to them + damages on the delay of payment of the same (which if entertained by court , will be value by the court itself).
Hope you are in possession of all the formal documents proving your association with the company (Offer Letter, Appointment Letter,Salary Slips and Email Communications stating your claims with HR). This will help you defending your side if an all this leads to a legal tangle.
I would advise you not to counter file a case against the company now, but to consult a lawyer at the earliest , present your case to him / her with all documentary evidences and reply to the court through the lawyer.
If you need further advice or suggestion on the legal aspect , can visit the below site which will be very useful : -
Lawyersclubindia - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements, Social Network for Lawyers, Legal Community, Law Help, Indian Lawyers
For any queries , if any, get back.
From India, Mumbai
34Company has the right to sue you under the following circumstances : -
- If your actions had resulted in huge business / financial loss the them.
- If your terms of employment insisted on serving the notice period (not paying the Notice Pay, as required by some critical profiles), the company has right to challenge you in a court of law.
- If you have breached any of the clauses of terms of employment or confidentiality, or any other service agreement therewith.
Understand you have not been relieved by issue of relieving letter / service certificate as proof for your service rendered. This stresses on the fact that any communication to you should be initially served on a Internal Memo , if not replied convincingly, should be served with a legal notice seeking reply, if company is till not convinced, they can summon you from court demanding to be present in court for an enquiry.
The company cannot, at any cost claim for the money spent for legal proceedings against the you, which will not stand valid in the eyes of law.
They can argue on the claim for "Notice Pay" Due to them + damages on the delay of payment of the same (which if entertained by court , will be value by the court itself).
Hope you are in possession of all the formal documents proving your association with the company (Offer Letter, Appointment Letter,Salary Slips and Email Communications stating your claims with HR). This will help you defending your side if an all this leads to a legal tangle.
I would advise you not to counter file a case against the company now, but to consult a lawyer at the earliest , present your case to him / her with all documentary evidences and reply to the court through the lawyer.
If you need further advice or suggestion on the legal aspect , can visit the below site which will be very useful : -
Lawyersclubindia - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements, Social Network for Lawyers, Legal Community, Law Help, Indian Lawyers
For any queries , if any, get back.
From India, Mumbai
Thanks Mr.Sriram for your reply.
I have few more queries.
1. what action will the court take in such cases.
2. they have claimed that i ve joined the direct competitor & that i have leaked confidential infor statin the name of the competitor firm -which is absolutly false.(as this is false will the same stand bef the court)
My app letter says"by 90 days notice served by either side or by payment of basic salary in lieu of notice or unexpired part of notice period or remaining absent for a preiod of 90 days on acc of ill health/any other reason,without notice or payment in lieu of notice on your being found guilty of any gross default or misconduct or for non-observance of any rules of the company or terms of employment.
provided always that in the event of your serving the notice/termination of contract,the company is its absolute discretion may req u to serve entire notice period.the decision of company is final and binding and it shall b lawful for u to take up employment elsewhere during the notice period."
From India, Mumbai
I have few more queries.
1. what action will the court take in such cases.
2. they have claimed that i ve joined the direct competitor & that i have leaked confidential infor statin the name of the competitor firm -which is absolutly false.(as this is false will the same stand bef the court)
My app letter says"by 90 days notice served by either side or by payment of basic salary in lieu of notice or unexpired part of notice period or remaining absent for a preiod of 90 days on acc of ill health/any other reason,without notice or payment in lieu of notice on your being found guilty of any gross default or misconduct or for non-observance of any rules of the company or terms of employment.
provided always that in the event of your serving the notice/termination of contract,the company is its absolute discretion may req u to serve entire notice period.the decision of company is final and binding and it shall b lawful for u to take up employment elsewhere during the notice period."
From India, Mumbai
Sruthi,
What actions the court may initiate is purely under the jurisdiction of the court and it is subject to the claims / evidences from both parties. You should not in any way be worried about the actions / decisions of the court , as you have the right to oppose the claim and defend the same with help of a counsel / lawyer.
Joining another competitor can be challenged in court only if you have signed a contract / agreement with a clause stating that you will not immediately join a direct competitor for stipulated period of time after getting relieved from the present employer. Confidentiality clause applies at the period of employment and employer expects the employee to maintain confidentiality of the internal matters / process / systems / trade secrets. In case of breach , the employee is liable to be sued in the court.
The contents of the Appointment Letter as referred by you is not very clear. I could only understand that the notice period is 90 days , if you wish not to serve the same , basic salary in lie of the entire notice period to be reimbursed to company, in case of early reliving , basic salary on Pro rata basis for the balance period left in notice period to be reimbursed.
Then it describes about the disciplinary actions in case of Misbehaving / Misconduct by the employee and necessary serving of the Notice Period. In your case, you have initiated the resignation and above condition of disciplinary action doesn't apply.
Hope your queries are answered.
Don't hesitate to meet a lawyer, he can give you a different perceptive of the issue and guide you in a better way.
From India, Mumbai
What actions the court may initiate is purely under the jurisdiction of the court and it is subject to the claims / evidences from both parties. You should not in any way be worried about the actions / decisions of the court , as you have the right to oppose the claim and defend the same with help of a counsel / lawyer.
Joining another competitor can be challenged in court only if you have signed a contract / agreement with a clause stating that you will not immediately join a direct competitor for stipulated period of time after getting relieved from the present employer. Confidentiality clause applies at the period of employment and employer expects the employee to maintain confidentiality of the internal matters / process / systems / trade secrets. In case of breach , the employee is liable to be sued in the court.
The contents of the Appointment Letter as referred by you is not very clear. I could only understand that the notice period is 90 days , if you wish not to serve the same , basic salary in lie of the entire notice period to be reimbursed to company, in case of early reliving , basic salary on Pro rata basis for the balance period left in notice period to be reimbursed.
Then it describes about the disciplinary actions in case of Misbehaving / Misconduct by the employee and necessary serving of the Notice Period. In your case, you have initiated the resignation and above condition of disciplinary action doesn't apply.
Hope your queries are answered.
Don't hesitate to meet a lawyer, he can give you a different perceptive of the issue and guide you in a better way.
From India, Mumbai
Dear Sruthi
Was there a non competition clause mentioned in your appointment letter, or was there any contract of non competition entered between you and the company.
Also was there any specific time mentioned in the non compettition contract or clause you had entered (if any) with the company, if answer to all the question is no then please do not worry, and represent yourself via a lawyer.
Even if you had entered a non competition clauses, then also there is not much to worry, because the non competition clause cannot be exercised beyond two years at the macimum
Please keep all the communication made by you with the company, ready to be produced in the court to prove there was no malice in mind.
Also if the company HR has in written sought a 50000/- Rs for settling the case, then please use the same to file a case under IPC, and please file the case against the Directors of the company.
For the time being dont worry, this is a very small matter.
Regards
Octavious
From India, Mumbai
Was there a non competition clause mentioned in your appointment letter, or was there any contract of non competition entered between you and the company.
Also was there any specific time mentioned in the non compettition contract or clause you had entered (if any) with the company, if answer to all the question is no then please do not worry, and represent yourself via a lawyer.
Even if you had entered a non competition clauses, then also there is not much to worry, because the non competition clause cannot be exercised beyond two years at the macimum
Please keep all the communication made by you with the company, ready to be produced in the court to prove there was no malice in mind.
Also if the company HR has in written sought a 50000/- Rs for settling the case, then please use the same to file a case under IPC, and please file the case against the Directors of the company.
For the time being dont worry, this is a very small matter.
Regards
Octavious
From India, Mumbai
sir
thanks for your input.
there was no non competition clause in the app letter. my query is as am ready to pay the notice period (which i ve already mentioned in my resignation mail ,for which they even replied statin will revert back on the amt to be paid),can they still go ahead with the case acussing me for being absent from duty!
From India, Mumbai
thanks for your input.
there was no non competition clause in the app letter. my query is as am ready to pay the notice period (which i ve already mentioned in my resignation mail ,for which they even replied statin will revert back on the amt to be paid),can they still go ahead with the case acussing me for being absent from duty!
From India, Mumbai
Dear Sruthi,
Pl follow the advices given by Mr. Warrier and Octavious. However, if your appointment letter had separate clauses for "Probation" and "Confirmation" with specific mention about the notice period (Eg. during Probation one month and upon confirmation 90 days), then no need to pay 90 days notice pay as you worked only for 4 and half months, which normally comes under Probation.
The best thing would be to consult a lawyer and send reply as the employer may harrass you in case you signed a service agreement which contain clauses favouring them.
All the best,
Gopal
From India, Jaipur
Pl follow the advices given by Mr. Warrier and Octavious. However, if your appointment letter had separate clauses for "Probation" and "Confirmation" with specific mention about the notice period (Eg. during Probation one month and upon confirmation 90 days), then no need to pay 90 days notice pay as you worked only for 4 and half months, which normally comes under Probation.
The best thing would be to consult a lawyer and send reply as the employer may harrass you in case you signed a service agreement which contain clauses favouring them.
All the best,
Gopal
From India, Jaipur
One small lesson learnt for others - always serve complete notice period! If not possible at all, in any case get a formal releiving letter. This is what I advise everyone!
From India, Pune
From India, Pune
Hi
In my appointment letter regarding notice of termination:
The appointment is liable to termination by giving three month's notice on either side. The company may, however, at its discretion pay one month's salary in lieu of the notice.
I am already resigned from company on 10th feb'2011 and giving 3 months notice to employer. now employer say me to go out and take salary upto you work alongwith 1 month pay.
Can I am able to take legal action against him(employer) as per above term.
please help me immediately on
With regards
R E
From India, Hyderabad
In my appointment letter regarding notice of termination:
The appointment is liable to termination by giving three month's notice on either side. The company may, however, at its discretion pay one month's salary in lieu of the notice.
I am already resigned from company on 10th feb'2011 and giving 3 months notice to employer. now employer say me to go out and take salary upto you work alongwith 1 month pay.
Can I am able to take legal action against him(employer) as per above term.
please help me immediately on
With regards
R E
From India, Hyderabad
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06b-Form VI-B (Notice of Commencement of Contract Work).pdf
Company Letter for Completion 01 Month Notice.docx