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suddhasheel (trainee)     26 June 2013

Need immediete advice regarding breaking the service bond

I have been working with a bangalore based FMCG company for the past 2 months as a trainee. currently posted in hyderabad.The current job i have is not as per my expectations and hence i was looking for other jobs and recently have got one with a consulting company which wants me to join by 15 th next month.

At the time of joining my current employer i had signed a service agreement bond which states something like -"In the event that you leave the company prior to 2 yrs from your DOJ you are liable to pay a sum of rs.50k representing the damages in training .  further company also reserves the right to withold and set off any other amount payable to me and shall have the right to seek recovery action for any residual money payable by you after such set off.

My queries 

1. Although no notice period is mentioned in the offer letter , i know a 1 month notice period exists which i would not be able to give. will that be a cause of concern?

 

2. I do not need the relieving letter however i am ready to pay the stated 50 k . From the language does it seem that they would charge only 50 k or it may exceed further?( can they ask me to pay for salaries recieved as well? )

 

PS- i have not discussed my resignation with the mgmt. plan to do it next week.

 



Learning

 2 Replies

Kumar Doab (FIN)     26 June 2013

 

The maximum amount has already been stated in the service agreement: Rs.50000/.

 

 The notice period/pay is not stated in offer/appointment letter drafted and issued by the company and accepted by you: hence notice period/pay is not applicable.

 

 If NO notice period/pay is stated in offer letter: how do you know that it exits?

 

If it exists then company can adjust notice pay for the shortfall in notice period by levying notice pay @ as decided with you in FNF statement/settlement, or it can proceed to recover it.

 

Has the company provided any training that added to your qualification, extra ordinary skills………?

 

If company has provided any training on its products, strategies, policies etc then company should provide it without any cost to employee.

 

It shall be appropriate that you may show all documents to elders in the family, competent and experienced well wishers, lawyer/law firm, understand the merits and proceed under expert advice than proceeding on your own.

A clear reply to all of your questions would be as per documents and records, you have.

 

 

 

leena Sharma (law and law training )     28 June 2013

Yes, you can leave the company as the damages have been liquidated on account of damages incurred on training. If you have any other property of the company, you are liable to return to it with a receipt taken from the company.

 

The words "payable to you" might indicate the bonus, salary etc.  


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