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Rasmi Ranjan (Team Lead)     12 May 2011

Conflicting clauses in Employment agreement

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.The MD has also taken a signed cheque while joining though i have blocked it in the bank.

Please suggest how these 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.



Learning

 1 Replies


(Guest)

WITH REFERENCE TO YOUR DETAILS KINDLY NOTE THAT.

1.YOU ARE ON PROBATION AND HENCE NOT YET CONFIRMED YOU ARE REQUIRED TO SIGN THE BOND OF SAID AMOUNT, AND  A SIGNED CHEQUE IS ALSO TAKEN BY THE SAID CO FROM YOU.

2.YOU HAVE TO BE CAREFUL AS THEY HAVE THE CHEQUE WITH THEM. I HAVE APPEARED IN SOME MATTERS  TO DEFEND THE EMPLOYEES IN MATTERS FILED AGAINST EMPLOYEES BY DEPOSITING THE BOND AMOUNT CHEQUE AND GETING HE SAME DISHONOURED. THEY MAY FILE A CASE UNDER SEC.138 OF N.I.ACT IF THE CHEQUE IS DISHONOURED. BUT YOU NEED NOT WORRY.BE CONFIDENT AND DEFEND THE SAID MATTER IF FILED. YOU WILL SUCCEED.GOOD LUCK.

3.YOU MAY KINDLY NOTE THAT IN CASE YOU ARE HARRASSED AND HAVE SOME ALTERNATE JOB OPTION THEN YOU MAY ISSUE NOTICE TO THE SAID CO.AS PER JOB OFFER LETTER AND RESIGN THE JOB.

4.THEN IN CASE THE CO.FILES ANY CR.COMPLAINT FOR DISHONOUR OF SAID CHEQUE THEN YOU CAN STRONGLY DEFEND THE MATTER AS IT IS A BAILABLE OFFENCE AND WILL LET YOU KNOW THE BEST POSSIBLE DEFENCE.

5 THERE ARE SOME COMPANIES WHO NEED TO BE TACKLED IN A LEGAL WAY.THEN ONLY THEY WILL STOP PLAYING SUCH HARASSMENT PROCESS WITH THE EMPLOYEES. GOOD LUCK.

YOU MAY WRITE AND SEND DETAILS FOR ANY FURTHER HELP GOOD LUCK.

WITH BEST REGARDS TO YOU YOUR FAMILY AND FRIENDS.

YOURS SINCERELY

NANDKUMAR B.SAWANT,M.COM.LL.B.(MUMBAI),ADVOCATE


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