Hi Friends
Please guide me what to do when your Employer has Mentioned in your appointment letter as following.
You are not allowed to resign before 12 months of your employment in our organization, if you do so you have to pay 12 Months salary as Compensation
towards training imparted to you.
And employee has signed the appointment letter as well without reading it carefully.
Please assist.
Thanks
From India, New Delhi
Please guide me what to do when your Employer has Mentioned in your appointment letter as following.
You are not allowed to resign before 12 months of your employment in our organization, if you do so you have to pay 12 Months salary as Compensation
towards training imparted to you.
And employee has signed the appointment letter as well without reading it carefully.
Please assist.
Thanks
From India, New Delhi
Dear Pramod,
There are a few things to keep in such situations.
1. The validity of the contract
2. The validity of the compensation amount
3. The effects of resigning with or without payment of compensation.
1. Any contract that violates your right to seek employment is void.
2. There cannot be an ad hoc amount like 12 months salary as compensation. There has to be a link between the cost incured on training and the compensation. Also factors like whether there was any actual training imparted or was it On the Job training etc.
3. In case you resign without paying the compensation understand that you will not be given your relieving letter. Also the company could always mess up a reference check
The question here is even assuming that the contract is void, do you have the time, energy and the money to take the company on in a court of law?
There are a lot of cases of such incidents being posted on citehr. In view of this My advice is firstly do not sign such agreements.
when prospective employees refuse to sign such contracts the occurance of such will reduce.
I know a lot of members will point out to the lack of bargaining power. But understand one thing well; It is better to be refused employment in a firm with such paractices than to be stuck there after joining. Understand that in most cases after you join you have even less bargaining power.
Regards
Savio
From India, Mumbai
There are a few things to keep in such situations.
1. The validity of the contract
2. The validity of the compensation amount
3. The effects of resigning with or without payment of compensation.
1. Any contract that violates your right to seek employment is void.
2. There cannot be an ad hoc amount like 12 months salary as compensation. There has to be a link between the cost incured on training and the compensation. Also factors like whether there was any actual training imparted or was it On the Job training etc.
3. In case you resign without paying the compensation understand that you will not be given your relieving letter. Also the company could always mess up a reference check
The question here is even assuming that the contract is void, do you have the time, energy and the money to take the company on in a court of law?
There are a lot of cases of such incidents being posted on citehr. In view of this My advice is firstly do not sign such agreements.
when prospective employees refuse to sign such contracts the occurance of such will reduce.
I know a lot of members will point out to the lack of bargaining power. But understand one thing well; It is better to be refused employment in a firm with such paractices than to be stuck there after joining. Understand that in most cases after you join you have even less bargaining power.
Regards
Savio
From India, Mumbai
Savio thanks a lot Dear,
but i have already signed the Appointment letter and after 15 days or so I I have read it actually what are the terms and conditions mentioned in the document...
well no actual training has been imparted to me ...it is just on the job training i ma going thru with.
and i do not have such resources to take company to the Law Court.
well now the question is what to do If i am willing to leave My company before completing 12 Months.....what would be the consequences and how to deal with the same.
Advice is requested.
Thanks
From India, New Delhi
but i have already signed the Appointment letter and after 15 days or so I I have read it actually what are the terms and conditions mentioned in the document...
well no actual training has been imparted to me ...it is just on the job training i ma going thru with.
and i do not have such resources to take company to the Law Court.
well now the question is what to do If i am willing to leave My company before completing 12 Months.....what would be the consequences and how to deal with the same.
Advice is requested.
Thanks
From India, New Delhi
Dear Pramod,
The consequence would be:
1. You will not get a relieving letter.
- I assume that you have another job offer and that is why you want to leave. You need to check with your future employer if it is ok with them that will nt get the relieving letter.
2. You may receive a legal notice asking you to pay up the compensation
- In case you receive such a notice get a lawyer to file a good reply pointing out that they have no grounds to demand any kind of compensation
3. They may ruin any future reference checks.
- There is nothing much you can do about this except accepting this risk.
I suggest that you read every word before you sign any agreement in future. And sign only if you are comfortable with all the terms. Its not a good thing to sign the agreement because its a tempting offer and then start searching for a loophole.
Regards
Savio
From India, Mumbai
The consequence would be:
1. You will not get a relieving letter.
- I assume that you have another job offer and that is why you want to leave. You need to check with your future employer if it is ok with them that will nt get the relieving letter.
2. You may receive a legal notice asking you to pay up the compensation
- In case you receive such a notice get a lawyer to file a good reply pointing out that they have no grounds to demand any kind of compensation
3. They may ruin any future reference checks.
- There is nothing much you can do about this except accepting this risk.
I suggest that you read every word before you sign any agreement in future. And sign only if you are comfortable with all the terms. Its not a good thing to sign the agreement because its a tempting offer and then start searching for a loophole.
Regards
Savio
From India, Mumbai
Thanks Mr Savio,
You are very correct, i will surely read every document in future before signing it.
Well what happens if i do not show my present Experience?
and no i do not have any offer with me as of now, but yes i am looking for a change as my present company is so boring and it has not so much to learn here. Well if you have any reference that will be appreciable.
Any ways thanks lottt!!!!
From India, New Delhi
You are very correct, i will surely read every document in future before signing it.
Well what happens if i do not show my present Experience?
and no i do not have any offer with me as of now, but yes i am looking for a change as my present company is so boring and it has not so much to learn here. Well if you have any reference that will be appreciable.
Any ways thanks lottt!!!!
From India, New Delhi
Savio,
one more thing i wish to discuss that the clause of NOT RESIGNING THE COMPANY before 12 Months is just on the Company Letter Head and not on the STAMP PAPER DULY ATTESTED by NOTARY.
so as far as My knowledge says it has no grounds to take any legal action against me and the bonded labour is also VOID in India. No employer is allowed to hamper the growth of any employee anyhow.
Please suggest if I am write or wrong??
Thanks
From India, New Delhi
one more thing i wish to discuss that the clause of NOT RESIGNING THE COMPANY before 12 Months is just on the Company Letter Head and not on the STAMP PAPER DULY ATTESTED by NOTARY.
so as far as My knowledge says it has no grounds to take any legal action against me and the bonded labour is also VOID in India. No employer is allowed to hamper the growth of any employee anyhow.
Please suggest if I am write or wrong??
Thanks
From India, New Delhi
Dear Pramood,
Would like to know a few things which will help me give you the best advice.
1. Is this your first Job?
2. What have you been hired as?
3. What kind of a role was offered to you in your current organization?
4. What kind of a role are you looking for?
As far as the agreement being on a Letter Head is concerned, it is as valid a paper as a stamp paper.
As far as the terms of the agreement go, I have explained their validity in my first post.
You have 2 options to choose from:
1. You complete a year here before you leave this company. This way the clause wont apply.
2. You leave this company before you complete a year and pray hard that they dont drag you to court to recover the compensation.
Irrespective of what I say about the validity of the terms of agreement, only a court ruling will settle any dispute that arises. and that is a long drawn and a very expensive proposition. As you pointed out, you dont have the financial backup to take the company on in a court of law.
Regards
Savio
From India, Mumbai
Would like to know a few things which will help me give you the best advice.
1. Is this your first Job?
2. What have you been hired as?
3. What kind of a role was offered to you in your current organization?
4. What kind of a role are you looking for?
As far as the agreement being on a Letter Head is concerned, it is as valid a paper as a stamp paper.
As far as the terms of the agreement go, I have explained their validity in my first post.
You have 2 options to choose from:
1. You complete a year here before you leave this company. This way the clause wont apply.
2. You leave this company before you complete a year and pray hard that they dont drag you to court to recover the compensation.
Irrespective of what I say about the validity of the terms of agreement, only a court ruling will settle any dispute that arises. and that is a long drawn and a very expensive proposition. As you pointed out, you dont have the financial backup to take the company on in a court of law.
Regards
Savio
From India, Mumbai
Dear Savio, If you dont Mind please give me your cell no. I am willing to speak with you. so that you can also understand my prospect better... thanks
From India, New Delhi
From India, New Delhi
Dear Savio,
one more thing i wish to mention about my query is- This is just a clause in My Appointment Letter, which is of four pages and some 15 Clauses.
And the line i have written below is one of the clauses.
"You have to serve the company for minimum 12 months, incase if you resign before completing 12 months, you are liable to pay 12 months salary as compensation towards expenses incurred on your training."
And till now no such formal training has been imparted to me.
And nowhere in My offer Letter OR Appointment it is written that I have been hired as TRAINEE.
Please reply with your Contact no.
Thanks
From India, New Delhi
one more thing i wish to mention about my query is- This is just a clause in My Appointment Letter, which is of four pages and some 15 Clauses.
And the line i have written below is one of the clauses.
"You have to serve the company for minimum 12 months, incase if you resign before completing 12 months, you are liable to pay 12 months salary as compensation towards expenses incurred on your training."
And till now no such formal training has been imparted to me.
And nowhere in My offer Letter OR Appointment it is written that I have been hired as TRAINEE.
Please reply with your Contact no.
Thanks
From India, New Delhi
Dear Pramod,
Im sorry I will not be able to share my contact details on a public forum.
The appointment letter can be construed as an agreement for the following reasons:
a. There are 2 Consenting Parties.
b. Both parties are competent to contract.
c. There is a promise by you to work and the other party to pay you for the work.
d. Object : Employment
e. Consideration: Salary
f. The object is legal : Your employment to perform tasks that legal.
This is a simple explanation.
A contract can be explicit (written down) or implicit or implied and not written.
In this case even if you had no appointment letter but you went to work in that company it would be an implied contract where it is implied that since you have worked you will get paid and your employment would be governed by the terms and conditions of employment prevalent in the organization.
Again I would like to reiterate that irrespective of the fact that the quantum of the compensation may not be propotional to the loss they incur and that the company is setting a restriction on your right to seek employment. You will only be able to get relief in court of law. This is something im repeating again and again.
Without giving out your organizations name please let me know your level in the organization, and what your role is. I will be able to help you better if i know these details.
Regards
Savio
From India, Mumbai
Im sorry I will not be able to share my contact details on a public forum.
The appointment letter can be construed as an agreement for the following reasons:
a. There are 2 Consenting Parties.
b. Both parties are competent to contract.
c. There is a promise by you to work and the other party to pay you for the work.
d. Object : Employment
e. Consideration: Salary
f. The object is legal : Your employment to perform tasks that legal.
This is a simple explanation.
A contract can be explicit (written down) or implicit or implied and not written.
In this case even if you had no appointment letter but you went to work in that company it would be an implied contract where it is implied that since you have worked you will get paid and your employment would be governed by the terms and conditions of employment prevalent in the organization.
Again I would like to reiterate that irrespective of the fact that the quantum of the compensation may not be propotional to the loss they incur and that the company is setting a restriction on your right to seek employment. You will only be able to get relief in court of law. This is something im repeating again and again.
Without giving out your organizations name please let me know your level in the organization, and what your role is. I will be able to help you better if i know these details.
Regards
Savio
From India, Mumbai
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