Hi, I have a doubt regarding the appointment letter and confirmation level. The issue is the appointment letter has two annexes. Annex A states that if I quit the company within 6 months, I have to pay 1 lakh. If I quit after 6 months but before 24 months, then 1.5 lakhs.
After 6 months, I received a confirmation letter which states that if I want to quit, I have to serve a 3-month notice period or pay a salary equal to 3 months. It also mentions that Annex B of the appointment letter is still applicable.
I then sent a resignation email to the company, explaining my financial problem and requesting to pay the required money. In response, they sent a letter from an advocate asking me to pay 1.5 lakhs.
My question is: Am I liable to pay 1.5 lakhs? Which letter prevails, the appointment letter or the confirmation letter? Moreover, the company is not deducting either TDS or PF.
Thank you.
From India, Hyderabad
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After 6 months, I received a confirmation letter which states that if I want to quit, I have to serve a 3-month notice period or pay a salary equal to 3 months. It also mentions that Annex B of the appointment letter is still applicable.
I then sent a resignation email to the company, explaining my financial problem and requesting to pay the required money. In response, they sent a letter from an advocate asking me to pay 1.5 lakhs.
My question is: Am I liable to pay 1.5 lakhs? Which letter prevails, the appointment letter or the confirmation letter? Moreover, the company is not deducting either TDS or PF.
Thank you.
From India, Hyderabad
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Legal Liability Regarding Employment Bonds
No, you are not liable to pay any money (1.5 lacs) as per the bond/agreement, as such bonds/agreements are themselves illegal. Through a bond/agreement, a company can only recover the exact amount of money spent on any special training of the employee and nothing else. Apart from that, the Supreme Court has made it clear that a company cannot hold its employees from leaving the company and even joining a competitor.
Since you have already received a legal notice, it is essential to consult a lawyer dealing with labor matters and promptly reply to the legal notice.
Check out my blog at www.labourlawhub.com
From India, Kolkata
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247No, you are not liable to pay any money (1.5 lacs) as per the bond/agreement, as such bonds/agreements are themselves illegal. Through a bond/agreement, a company can only recover the exact amount of money spent on any special training of the employee and nothing else. Apart from that, the Supreme Court has made it clear that a company cannot hold its employees from leaving the company and even joining a competitor.
Since you have already received a legal notice, it is essential to consult a lawyer dealing with labor matters and promptly reply to the legal notice.
Check out my blog at www.labourlawhub.com
From India, Kolkata
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Appointment Letter to an Employee for fixed period.doc