My friend signed an appointment letter with the company, the letter had the below clause.
''On acceptance of this letter, you are bound to join work at (Company Name) on YYYYMMDD. To enable you to join us sooner than YYYYMMDD, we offer you the option of 'pay in lieu of notice' PILON reimbursement. It is further acknowledged and agreed that following the pay in lieu of notice' (PILON) reimbursement by us, you shall continue to work with us for a minimum period of one year and during this period you will not accept any other form of employment, or engage in any other business activity. Failing either of the above conditions, we are liable to claim six month's salary as compensation as well as any costs of litigation, including all reasonable attorney fees.''
As per him, he discussed this on a call with Company that the six-month salary issue will be if Pilon is taken and he leaves within a year after signing that.
And now he does not want to join company A as he is going for another company B now due to a good offer from another company.
But now Company A, says that if you do not want to join then you will have to pay six months of salary as per the above clause or else they will file a case against him.
Can someone advise what he should do now He even does not have that much money as he is from a poor family and he is a single earning person in his family?
Why should he pay a six-month salary even if he has not joined the company nor he has taken any amount from that company..
From India, Vasco da Gama
''On acceptance of this letter, you are bound to join work at (Company Name) on YYYYMMDD. To enable you to join us sooner than YYYYMMDD, we offer you the option of 'pay in lieu of notice' PILON reimbursement. It is further acknowledged and agreed that following the pay in lieu of notice' (PILON) reimbursement by us, you shall continue to work with us for a minimum period of one year and during this period you will not accept any other form of employment, or engage in any other business activity. Failing either of the above conditions, we are liable to claim six month's salary as compensation as well as any costs of litigation, including all reasonable attorney fees.''
As per him, he discussed this on a call with Company that the six-month salary issue will be if Pilon is taken and he leaves within a year after signing that.
And now he does not want to join company A as he is going for another company B now due to a good offer from another company.
But now Company A, says that if you do not want to join then you will have to pay six months of salary as per the above clause or else they will file a case against him.
Can someone advise what he should do now He even does not have that much money as he is from a poor family and he is a single earning person in his family?
Why should he pay a six-month salary even if he has not joined the company nor he has taken any amount from that company..
From India, Vasco da Gama
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