Help regarding offer agreement from IT company
Rasmi Ranjan
(Querist) 12 May 2011
This query is : Resolved
Hello sir.
I am an employee of an IT organisation in Hyderabad,I joined the org in Jan 2011 as it is a start up and i thought the opportunity will be enornous.But later i found out that the MD is playing gimmicks of all kind with resources (13 resources, 1 fresher left last month against whom the MD is conteplating filing a civil and a criminal suit).
Now he is going against all the promises made before joining organisation ( like changing the company policy abundantly just to force resources not to leave the org, but trying anything not to give resources their fare share of salary for example he deducted INR 34000 this month from my salary towards Tax for the whole 2011-12 in advance).
NOw i want to leave the org by any means and for that i was going thru offer letter and found out the below mentioned clauses.
Clause 1. Your first year of service will be the probation period during which you will be appraised for satisfactory performance for which ORG would normally confirm you.
If your performance is found unsatisfactory, company may extend probation period by 6 more months or terminate your employment with immediate effect.
During extended probation period, if your performance is still found unsatisfactory, company may terminate your services forthwith without any notice whatsoever.
The terms and conditions of the training will be governed by ORG policy.Company reserves the right to modify or amend the training policy.
Clause 8.Notice period - During your employment with ORG, including probation/training, either you or ORG can terminate the appointment by giving 3 months written notice.
Clause 7. Service Agreement - As org will be incurring considerable expenditure on your training/initial cost, you will be required to execute an agreement to serve ORG for a minimum period of 1 year after joining with ORG, failing which, you will be liable to pay Rs 2,50,000/- towards the training /initial cost expenditure.
To me, clause 1 and 8 seems contradictory while one says he can fire me any time and the other says about 3 months notice perioid.
Hence, please let me know if i will leave the org now ( i am in probation, not confirmed as a permanent employee ), how it will affect me legally ?
And clause 7 says about paying back 2.5 lakh if i leave before completing 1 year.But some people say it is illegal and will be null and void before court of law.
Please suggest how thse 3 clauses will affect me legally in case MD files a suit against me if i will leave the org now as i am in the middle of life and death regarding my career here.
I will be grateful and obliged.
Please mail me at prasmiranjan@gmail.com so that i can contact in case i will need legal help regarding this.
Guest
(Expert) 14 May 2011
Dear Rashmi,
If you have signed the bond with the company, it is irrelevant to point out about legality at this stage. If you challenge the same in the court of law that may take a long time to settle your case. As per agreement, if you leave the company you will not only have to serve the notice of the prescribed period but will also have to pay the bond amount, as you have already agreed in writing for that.
However, if the company terminates your services at its own, it cannot compel you to pay the training period bond amount.
Now you may decide, how you would like to pull on with the present job. However, even after one year, even if your performance is satisfactory, the company does not seem to have good intention. It can still extend your probation period for 6 months thereafter.
If the MD files a suit against you to recover the bond amount on leaving the company, since the MD has the capacity to pay the fee to a good lawyer, the case may be proved against you even on wasting of your money in fighting the case with the company. Not only that the company can charge as expenditure in to its company accounts and get tax benefits, you would be spending from your own pocket to fight the case.
In fact such things are to be considered before signing any agreement with the company at the time of accepting offer of the company, not at the later stage when you have already been bound under the harsh conditions.
RAJU O.F.,
(Expert) 17 May 2011
Since you have agreed for the terms of the service contract, better to wait for one year to change the company; otherwise the company would enforce the agreement to get Rs.2.5 lakhs from you. Other option is to provide unsatisfactory performance, enabling you to get terminated; but it may affect your future careers. There are many MDs and companies which are constitued for cheating and manipulations. The freshers who join such companies are to have proper knowledge about the standing of the company.
