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Sam Ss   21 June 2022

Employment training/contract cost


Background  - working in a pvt org for 7 months. Have sent out resignation mail last month. They are asking for 6 months gross pay as recovery cost now, which is very huge amount. There is nothing mentioned in my offer letter that explicitly mentions about any contract for service apart from below clause- 

"In the case you resign during the initial period between 0 to 12 months and the same is accepted by the 
management, the expenses incurred by the management on your training during your employment and 
contract cost shall be refunded by you. The quantum of amount determined by the management in this 
behalf shall be final."

They have agreed that there is no training provided to me, but redund is for some business impact. (This was confirmed over call, but I have added this in the email I had sent to them seeking clarification for asking 6 months gross even afyer agreeing that no training was provided in my case)

Please help with above clause - does it still imply that am breaching a bond? It says 'contract cost' but I haven't signed any. Is this still valid for them to ask the money as recovery ? I'm also ready to serve the notice period as mentioned in offer.

Please advice, if I can fight legally with the email i have. They are not responding to my emails, I just have sent the discussions that happened over call for tracking. Will that stand as valid proof?


 1 Replies

Sravika Reddy Kohir   21 June 2022

Hello Sam, I acknowledge your question. It is clear that you have entered into the contract when you have accepted the offer letter and conditions under it. Since there was an offer acceptance and also a lawful consideration that would be paid as salary, it fulfils all the valid conditions for contract under section 10 of Indian Contract Act. Though there has been no training programme provided thus entering into contract and not abiding to the clause therein results in breach of contract. The notice period is mandatory for any individual and thus irrespective of that you are obliged to pay for the gross pay as recovery cost.

I hope I have answered your question.

Have a good day.

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