Hello, I am working in a private IT firm for the last 2+ years in Maharashtra.
One year before, I had a good offer, but my company retained me with 8-9% more salary than the available offer. Against this, I signed a 3-year commitment (on scanned company letterhead). I received verbal confirmation that my appraisals will occur according to the company's processes every year.
Among other clauses, there are 2 important points:
1) It is agreed by you that for any changes, an appraisal will be conducted at the discretion of the company, and the company's decision will be final.
2) You agree that a violation of the above would result in a direct loss to the company, and you will be required to pay the difference between the previous and current remuneration for the remainder of the 3-year agreed period.
Now, having served for more than a year and with the salary cycle passed, they informed me out of the blue that the company will not provide an increment for the next 2 years.
No one had informed me at the time of the agreement, and I was told otherwise.
In this situation, I am feeling highly demotivated and do not wish to continue any longer.
If I resign with a notice period, do I need to pay anything to the company? Are there any alternatives? Can the company withhold my relieving or experience letter?
From India
Acknowledge(0)
Amend(0)
One year before, I had a good offer, but my company retained me with 8-9% more salary than the available offer. Against this, I signed a 3-year commitment (on scanned company letterhead). I received verbal confirmation that my appraisals will occur according to the company's processes every year.
Among other clauses, there are 2 important points:
1) It is agreed by you that for any changes, an appraisal will be conducted at the discretion of the company, and the company's decision will be final.
2) You agree that a violation of the above would result in a direct loss to the company, and you will be required to pay the difference between the previous and current remuneration for the remainder of the 3-year agreed period.
Now, having served for more than a year and with the salary cycle passed, they informed me out of the blue that the company will not provide an increment for the next 2 years.
No one had informed me at the time of the agreement, and I was told otherwise.
In this situation, I am feeling highly demotivated and do not wish to continue any longer.
If I resign with a notice period, do I need to pay anything to the company? Are there any alternatives? Can the company withhold my relieving or experience letter?
From India
Acknowledge(0)Amend(0)
If you have signed the agreement promising to pay back the differential salary in case you leave, then obviously they have the right. Why did you sign such a stupid clause?
The enforceability will depend on a number of things.
You may need to speak to a lawyer
From India, Mumbai
Acknowledge(0)Amend(0)
2498The enforceability will depend on a number of things.
You may need to speak to a lawyer
From India, Mumbai
Acknowledge(0)Amend(0)
To clarify further, an agreement made on a piece of paper is as valid as signing it on Stamp Paper. So it doesn't matter that you had signed on the scan copy of the agreement prepared on letterhead.
The agreement terms are one-sided and are hence inequitable. Take legal advice from a good Civil side law practitioner on your chances.
From India, Mumbai
Acknowledge(0)Amend(0)
The agreement terms are one-sided and are hence inequitable. Take legal advice from a good Civil side law practitioner on your chances.
From India, Mumbai
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
How to Handle an Employee Resignation.doc
Employee Salary file - India 2016 AB.xls