Civil Procedure Code (CPC)

Is the Cost of Training refundable at the time of Resignatio


I was given Training in Foreign Exchange by Syndicate Bank for two months. The Bank has incurred a cost of around Rs 1.5 Lakh on me. Just after completion of Training I got a job offer from a Central University for the post of Asst Professor and then I resigned from the job. The Bank has accepted my resignation but in order to relieve me from the services of the Bank, they asked me to refund the cost of Training i e Rs 1.5 Lakh. It is to be noted that, No Bond was signed by me. I was never informed by the Bank that in case of resignation I need to refund the entire cost of training. Instead of that, they informed me that, notional cost would have been recovered from me, in case I fail to attend the training program. I resigned from the Bank after being confirmed into the services. As per the Appointment letter issued by Syndicate Bank, I need to refund the cost of training or any other cost which the Bank has incurred on my behalf.

Therefore, keeping in view of these, I refused to pay the amount. Now I am worried about whether they can take any legal action against me. Please guide me in this regard.

 
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I need to refund the cost of training or any other cost which the Bank has incurred on my behalf only during the probation period as per the Appoinment letter issued by the Bank

 
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Bank Executive (Retired)

As far as I am concerned, the answer lies in your appointment letter itself.  Legally, the Bank may not be able to enforce their claim on you based on what yu have stated.   However, it is better to elicit opinion from a specialised advocate  in this field.

 
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HEAD - HUMAN RESOURCES

Dear Mr.Bordoli,

It depends upon the terms of agreement and other HR manual or Organisations Policy that matters.  In the instant case, they may recover it since considerable amount of investment has been made in your training and in the corproate language the speaks.

If you are liable to pay and if you fail to do so they may enoforce leagal action besides holding Clearance-cum-No dues ceritifcate which is mandatory to produce to othe organisation when you happen to join them.

I am of the opinion that you may request to waive it off considering some special grounds which you may present to them.

Thanking you,

Sagala Amarnath

 
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Consultant & Legal Analyst

Depends upon the conditions laid down in your appointment letter, rules of resignation of the Bank or the bond, if any signed by you, either at the time of entering service or before or duting training. You may pleaaase go through all those documents to make sure what the language of each document indicates.

 
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