Hi! I had an employee reach out to me. As per her terms of employment with a multinational entity, she had to serve a mandatory period of 24 months which includes 12 months of probationary time. In case, she fails to serve this mandatory period of 24 months, she will be liable to pay a certain sum towards compensation fees. Due to unforeseen circumstances, she had to resign within 11 months and now the MNC is demanding some compensation back from her.
Is this allowed as per the laws in India? If so, how can she weave through this issue?
From India, Mumbai
Is this allowed as per the laws in India? If so, how can she weave through this issue?
From India, Mumbai
Hi,
What were the documents signed by the employee and what was the nature of work performed. Whether any specialized software /skill development training was given ? Whether any security cheques were deposited ? In the absence of security cheques there might not be any major implications except that they will serve termination.
Normally in any Agreement there will be some "way out " clause will be there like extended notice. Please check the terms and conditions thoroughly.
From India, Madras
942What were the documents signed by the employee and what was the nature of work performed. Whether any specialized software /skill development training was given ? Whether any security cheques were deposited ? In the absence of security cheques there might not be any major implications except that they will serve termination.
Normally in any Agreement there will be some "way out " clause will be there like extended notice. Please check the terms and conditions thoroughly.
From India, Madras
The employee is an IT Professional. There was an offer and appointment letter signed by the employee which had this clause mentioned in it. No security cheques were deposited as such. The employee had also diligently served the notice period in full.
From India, Mumbai
From India, Mumbai
Hi,
My assessment is that there will not be much implications except that they will serve termination / block list the employee for future requirement / will provide negative feedback incase of BGV.
However advise the employee to try for proper relieving without making any payment.. say by serving additional notice period ? if permitted.
From India, Madras
My assessment is that there will not be much implications except that they will serve termination / block list the employee for future requirement / will provide negative feedback incase of BGV.
However advise the employee to try for proper relieving without making any payment.. say by serving additional notice period ? if permitted.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls