From the above, I observe that your engagement is just as an employee. There are a lot of clauses which describe that there exists an employee-employer relationship between you and the company. Leave, working hours, reporting structure, mandatory meetings, bar on working for other companies, etc., are some of the clauses which establish it. However, since a few of the company employees are reporting to you, any dispute will be redressed as per the provisions of the Contract Act only.
The security deposit is not illegal, especially since you have agreed to it and there has been a considerable deduction in the past. Therefore, you cannot dispute it now. Termination of the MoU is possible by giving one month's notice (is it not one month?) to the company, and with this, the amount held as a security deposit will become, as per 3.2, the amount payable if you complete the project or leave the company after giving the required notice. Moreover, since the MoU is not less than employment, the company is not in a position to hold a security amount for an unreasonable period. Viewed from the perspective of the Contract Act, the restrictive clause compelling a person not to leave until the project is completed is illegal and may make the contract voidable.
Regarding the TDS part, I also understand that you have professional qualifications to substantiate your engagement; otherwise, the tax would be 1%.
Madhu.T.K
From India, Kannur
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4482The security deposit is not illegal, especially since you have agreed to it and there has been a considerable deduction in the past. Therefore, you cannot dispute it now. Termination of the MoU is possible by giving one month's notice (is it not one month?) to the company, and with this, the amount held as a security deposit will become, as per 3.2, the amount payable if you complete the project or leave the company after giving the required notice. Moreover, since the MoU is not less than employment, the company is not in a position to hold a security amount for an unreasonable period. Viewed from the perspective of the Contract Act, the restrictive clause compelling a person not to leave until the project is completed is illegal and may make the contract voidable.
Regarding the TDS part, I also understand that you have professional qualifications to substantiate your engagement; otherwise, the tax would be 1%.
Madhu.T.K
From India, Kannur
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Dear Fraternity,
I am back after almost 8 months. The frustration of having to lose almost 2 lac on account of the security deposit and settling down in a new engagement took that much time.
My request to you all:
1. Is the "memorandum of understanding" legal?
2. If not, can I initiate legal action?
3. If affirmative, where do I request it? I have relocated to another city.
TIA.
Regards,
Deepak Kanade
9922995357
From India, New+Delhi
Acknowledge(0)Amend(0)
I am back after almost 8 months. The frustration of having to lose almost 2 lac on account of the security deposit and settling down in a new engagement took that much time.
My request to you all:
1. Is the "memorandum of understanding" legal?
2. If not, can I initiate legal action?
3. If affirmative, where do I request it? I have relocated to another city.
TIA.
Regards,
Deepak Kanade
9922995357
From India, New+Delhi
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Security Deposit.pdf