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Jithesh (Consultant)     01 October 2013

Breach of service agreement

Hi Sir,

After 2 weeks of employment with a private IT company,I decided to leave the company and join another company, as I was not assigned any project in the present company & the new company offered me a better career option. I told my manager that I'm resigning & dropped a resignation mail (from my official mail id, which I do not have any access now). From the very next day I decided not to go to the same company & joined another company. The HR then contacted me & asked me to report to work & follow the resignation process that includes serving a notice period of 3 months. I then chose not to answer the calls from HR. Now they have sent a letter to my permanent address asking me for explanation & to report to work.

While joining the company, I have signed a service agreement which states that the employee need to serve notice period failing which the company can take disciplinary action which may be termination or legal action.

What should I do now? Does the service agreement (which is not in stamp paper) authorize company to take legal action? I do not want any salary or experience letter from this company.

Thanks in advance,

Jithesh



Learning

 5 Replies

Advocate Rohit (Advocate)     02 October 2013

Since you have signed the service agreement with the company, thus you are bound to follow the terms and conditions of the service contract.

By avoiding it you are putting yourself into the trouble of harassment. it is advisable to contact the HR Department and explain your situation. you need to reply to the letter received from your old employer.

 

Note: Do not share your current employment details with them.

 

Regards,

Advocate Rohit Dalmia

9324538481

Jithesh (Consultant)     02 October 2013

Thank you sir.

 

They already came to know about my current employment details through one of my colleague.  My current HR is also aware that I absconded from my previous company. 

How should I reply to that letter when they already know that I'm employed somewhere else?  What kind of action they might take? 

 

Regards,

Jithesh. 

Kumar Doab (FIN)     02 October 2013

2 weeks too short a period for employer/employee to separate. Employee should conduct due diligence before joining any employer.

At times employer and his line managers/HR can turn adamant, recalcitrant, vindictive towards employees resigning after say 2 weeks treating it as a mockery of their company.

Notice of resignation/Resignation should always be supplied by redg. post and POD should be obtained from PO.

You should be able to conclude that you have duly submitted resignation and have left after prior intimation and have not absconded/absented/abstained. You should also contest any attempt to claim that you are coming to office and claim that such statements are willful falsification of record……………..

 

1. You have resigned by informing your manager in person in office and in writing from official email id.

(You can reply and state about resignation and ask for the copy and/or to provide access to official email id and you would generate the printout and submit again. You must state in notice/resignation/reply to letter that no task/company property was ever assigned to you and nothing is pending at your end. And that all of this duly discussed in office with Mr/Ms…………..)

Resignation can be without permission or notice. The party (which breaches the contract: employee in this case) has to compensate the other party (employer in this case) as per bilateral agreement (appointment letter/contract of employment/service agreement………….)

If the liquidated damages are well defined in the contract that is the max. company can ask for……e.g. notice pay, or bond amount etc……………

2. You have worked for 2 weeks only. Were your services under training/probation or did you join as a confirmed employee from day1?

Notice period as a part of service conditions is stated in standing orders (certified/Model) applicable to the company, offer letter, appointment letter, contract of employment, statue…………………….and Shops and Commercial Establishments Act applicable to the establishment.

The term Industry does not mean factory alone. The Standing Order Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies. Section 2 (e) (iv)…………..

The service conditions and notice period stated in standing orders can not be negated to employee in appointment letter. Standing orders shall prevail upon all other docs……………………

If notice period is 1 month in standing Orders it can not be more than 1 month in appointment letter. Standing Orders should be displayed at conspicuous place or notice board. Employee can obtain copy from employer against a nominal payment say Rs10/…………………………………and also from certifying officer (DLC) against a set fee……………………… 

Although designation alone does not decide employee is a workman or not it shall be appropriate to approach a competent and experienced labor consultant/service lawyer and you r lawyer can opine if you would be covered as ‘Workman’ as in ID Act or as ‘Employee’ as in Shops and Commercial Establishments Act or not.

It companies are covered under Shops and Commercial Establishments Act and in many states have not granted exemption from the provisions of Industrial Employment Standing Orders Act……………………………….

You may carefully go thru Shops and Commercial Establishments Act applicable to your state and Model Standing Orders…………………

Model Standing Orders: Notice period during probation period is NIL.

The service agreement signed by you may be violative of standing orders.

Shops and Commercial Establishments Act: Notice period for 2 weeks service may be NIL.

You may check with o/o Inspector/Chief Inspector under Shops and Commercial Establishments Act and O/o Labor Commissioner and confirm applicability of standing orders to this establishment.

Another employee in another thread has pointed out that Labor Commissioner Office mentioned that notice period is 1month as in Shops and Commercial Establishments Act and notice period of 3 month i.e. more than 1 month can be termed void.

https://www.lawyersclubindia.com/forum/Employer-not-relieving-employee-contt-89308.asp#.UkP5C9KAqWM

 

The current employer can absorb you in employment without relieving letter.

Another employee in another thread has pointed out that he firmed up all T&C with next employer and has remained in employment without relieving letter.

https://www.lawyersclubindia.com/experts/Notice-period-not-served-in-full-425096.asp#.Ukw5ddKAqWM

Another employee in another thread has pointed out that he/she succeeded in getting relieving letter with god comments.

https://www.lawyersclubindia.com/forum/No-relieving-letter-even-after-complete-notice-period-89126.asp#.UkvfGtKAqWM

 

You may show the job advertisement, job application, interview call letter, selection letter, offer letter, appointment letter, service agreement, letter/notice by the company, etc to your labor consultant/service lawyer……………….and proceed under the expert advise of your lawyer.

 

 

 

 In the meantime you may find the attachments as useful.


Attached File : 564196498 417759075 validity of employment bonds.pdf, 564196498 background paper.pdf downloaded: 161 times

Jithesh (Consultant)     03 October 2013

Dear Sir,

 

Today I received an employment termination mail from my previous company, and they asked me to pay an amount equivalent to 90 days full salary (which is comparatively a huge amount), failing which they will initiate legal action & inform my future employer that I'm an absconding employee. The employment closure notice also specifies the status at the time of leaving as "Abandonment of position".

 

I was on probation for 6 months & I read somewhere in google that Notice period of 3 months is not legal as per Labour laws when the company can terminate you any day without notice. The service agreement (which I signed) states that "The employee agrees that his employment may be terminated by the company at any time during probation term without any notice". Wouldn't the same be applicable to employee as well? Another clause states about the 3 months notice period without explicitly stating it is for probation term or for permanent employment. 

 

I'm confused how I should respond to this mail. I do not want 15 days salary or the experience letters, neither I'm ready to pay such huge amount. please advice.

 

Thanks & Regards,

Jithesh Pothera.

Kumar Doab (FIN)     03 October 2013

 

You may claim that you have not abandoned or absconded or abstained or absconded…………………

 

 

You may show the job advertisement, job application, interview call letter, selection letter, offer letter, appointment letter, service agreement, letter/notice by the company, termination email  etc to your labor consultant/service lawyer……………….and proceed under the expert advise of your lawyer.

 

In case of dispute employee can approach Lawyer, Trade unions, Inspector under Shops and Commercial Establishments Act, O/o Labor Commissioner, civil court…………….


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