Hello all, I signed a 24-month contract with my current employer upon joining back in 2021. However, I have now received a better opportunity and would like to resign. Considering the 90-day notice period, there will be one month left to complete the bond period. By the end of the notice period, I would have served 23 months out of the 24-month contract.
My employer is requesting a compensation amount of 125,000 since I am breaking the bond. Shouldn't the compensation be calculated on a pro-rata basis? It does not seem reasonable to pay the full 125,000 after serving the company for 23 months. Is it legal for the company to charge the total amount? How can I exit without paying the full amount? Please advise.
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My employer is requesting a compensation amount of 125,000 since I am breaking the bond. Shouldn't the compensation be calculated on a pro-rata basis? It does not seem reasonable to pay the full 125,000 after serving the company for 23 months. Is it legal for the company to charge the total amount? How can I exit without paying the full amount? Please advise.
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You may reveal your identity along with your location before asking this question. You need not disclose your company's name.
Why should we answer such questions when we do not even know to whom we are responding.
From India, Aizawl
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651Why should we answer such questions when we do not even know to whom we are responding.
From India, Aizawl
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@Rkn61, I’m sorry I wish not to reveal my identity, i work for IT firm in banglore and I’m facing above issue that i mentioned. Can u please help me on that?
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Hi,
Wherever possible, try to complete the bond period. If you leave without completing the bond period:
1) Your employer will harass you by sending legal notices to you.
2) In case they come to know about your new employer, they might communicate to them that you were not properly relieved, indicating a case of dual employment, etc.
3) In case of any future Background Verification (BGV), you will not receive positive feedback from them.
4) They will not consider you for future re-employment.
Talk to your new employer and ask for some time.
When you are unsure of completing the fixed period, you shouldn't have signed the Bond/Agreement. Anyhow, now focus on how to get out of it.
From India, Madras
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Wherever possible, try to complete the bond period. If you leave without completing the bond period:
1) Your employer will harass you by sending legal notices to you.
2) In case they come to know about your new employer, they might communicate to them that you were not properly relieved, indicating a case of dual employment, etc.
3) In case of any future Background Verification (BGV), you will not receive positive feedback from them.
4) They will not consider you for future re-employment.
Talk to your new employer and ask for some time.
When you are unsure of completing the fixed period, you shouldn't have signed the Bond/Agreement. Anyhow, now focus on how to get out of it.
From India, Madras
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Hi,
In addition to the above, I am not sure if you have submitted security checks with your employer. If so, be cautious. If you leave without providing any information, they may deposit the check with the bank. In the event of non-payment, it could lead to a criminal case.
From India, Madras
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In addition to the above, I am not sure if you have submitted security checks with your employer. If so, be cautious. If you leave without providing any information, they may deposit the check with the bank. In the event of non-payment, it could lead to a criminal case.
From India, Madras
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Hello Vmlakshminarayanan,
I'm not thinking of absconding; I need a relieving letter from my existing employer as I'm on the notice period now. I am hoping that the compensation I need to pay will be on a pro rata basis. Since it's only 34 days, I only want to pay an amount in proportion to the days. However, my HR is asking me to pay the total amount.
I have performed very well till now, and the employer would have recovered all the costs they spent on my training. Legally, it's not correct to pay the total amount, right?
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I'm not thinking of absconding; I need a relieving letter from my existing employer as I'm on the notice period now. I am hoping that the compensation I need to pay will be on a pro rata basis. Since it's only 34 days, I only want to pay an amount in proportion to the days. However, my HR is asking me to pay the total amount.
I have performed very well till now, and the employer would have recovered all the costs they spent on my training. Legally, it's not correct to pay the total amount, right?
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Adding to above comment, i have not signed on any bond paper, it was just printouts of agreement, and i have not given any cheque or document.
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Hi,
In that case, make a request. Explain to them that you are not in a position to pay such a huge amount and considering the fact that more or less the agreement period is completed, with only a shortfall of 34 days, request them to consider and negotiate. Most employers will accept and charge some nominal amount, say one month's gross or so.
It all depends on how you present yourself humbly and request them.
From India, Madras
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In that case, make a request. Explain to them that you are not in a position to pay such a huge amount and considering the fact that more or less the agreement period is completed, with only a shortfall of 34 days, request them to consider and negotiate. Most employers will accept and charge some nominal amount, say one month's gross or so.
It all depends on how you present yourself humbly and request them.
From India, Madras
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Vmlakshminarayanan, Hi, I’ll request as my employer you guided. Thank you kind sir.
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As per Section 73 of the Contract Act 1872, the compensation for any loss or damage caused due to a breach of a contract has to be that amount which naturally arose in the usual course of things from such breach, or which the parties knew when they made the contract to be likely to result from the breach of it. So when you have served nearly 23 out of the 24 months you were required, the compensation has to be proportionately reduced unless the mutual agreement is to the contrary. So, please see the contract clause and make your submission accordingly.
From India, Mumbai
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From India, Mumbai
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