Is services agreement on Rs. 100 stamp paper legal and binding? I recently joined a company and signed services agreement on a stamp paper of Rs. 100 where I have been referred to as a CONSULTANT and NOT AS AN EMPLOYEE OF COMPANY. But the points of the agreement are all in favor of the employer. The MINIMUM lock in period is of 5 years!! In case I am terminated by the company on disciplinary or performance ground or if I resign before the lock in period, I have to pay the salary of six months (Rs. Six Lakhs!!). The notice period is also of six months if I want to resign and if the notice period is before compelting lock in period, then again six months salary, in addition to any other losses incurred by the company, is payable to company by the employee. I am currently performing duties at the company and doing work which is actually the full time work of two employees with separate expertise. But in bond the common expertise of two fields is mentioned as my duty!! I do not find any point in the agreement which is in favor of the employee except payment and policy for increments. In addition, I am prohibited, as per the agreement, to undertake any paid or otherwise assignments during the period of the agreement and if I want then written permission from management has to be taken. I was also made to submit an undated cheque worth six months salary as security deposit or token of trust with a clause of encashment in case of breach of service agreement. I have given stop payment order for the cheque to bank. Can it be covered under negotiable instruments act if stop payment is made? Please guide if such agreements are legal and valid in India. In addition, I signed agreement in one city and the other party might have signed it in other city. The space for signatures of the witnesses (two witnesses) was there on the agreement but only I signed the agreement and it was later sent to Mumbai for further signatures of the MD of the company. Please help. I am under tremendous pressure. I also do not have copy of the agreement. No training of any type is provided by company. I am being extremely exhausted at the end of day of 8 hours work......... I never experienced this earlier. This is my first time signing the SERVICE AGREEMENT. Please guide.
From India, Pune
1From India, Pune
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AGREEMENT FOR RECRUITING SERVICES..doc
ASSESSMENT SERVICES.pdf