Intellectual Property Rights: Practice and Drafting by Adv Gautam Matani. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

kumar (Graduate Engineer Trainee)     19 October 2013

Resignation during training period

I have joined an automotive company in Bangalore as graduate engineer trainee (an on campus recruitment). It has been 2.5 months and now I want to resign. In the offer letter it was written that i have to serve 1 month notice period and return the training amount which company has spent on me. Due to some reason I can serve them a notice of 20 days maximum. Is it possible that I can pay back them only 10 days salary as i am not able to complete 30 days. As such I haven't undergone any specific training from the company (any certification) but the company is asking me to pay back them the 2.5 months salary (as per them it is the training cost) which they paid me during this period, is it legal/avoidable ? They even want me to pay back the travelling allowance, which was given to me during joining and also the guest house expenses of the company.
what could be done to avoid these charges?

the clause says

"The company shall have the right to terminate this contract of training at any time by giving one month's notice or stipend in lieu thereof. If the trainee wants to be relieved from the contract it shall be obligatory on the trainee to give one month's notice period and also refund the cost of training incurred by it."

Please help !!


 3 Replies

Kumar Doab (FIN)     20 October 2013


The advertisement issued or notice place on notice board about the campus recruitment by the company, job application, offer letter, selection letter, appointment letter, standing orders applicable to the company, should be looked into verbatim……………………….to find out if you were recruited as GET under Managements’ Standing Orders or under Apprenticeship Act.




A clear reference on appointment under Managements’ Standing Orders or under Apprenticeship Act should have been stated in the appointment letter.


If the appointment is under Managements’ Standing Orders then certified copy of the standing orders should be obtained and referred to.


Company can not violate its standing orders.

The certified standing orders (CSO) of the company should be displayed at a conspicuous place/notice board and a certified copy should be supplied to employee against a nominal charges say Rs.10/-


Before you agree to pay you may request in writing preferably by redg. post,  the appointing authority to supply the CSO by redg. post and to let you know in writing the fee if any to be paid by you under receipt of the payment.


Employee or anyone can obtain copy of CSO from CO (Certifying Officer-DLC in O/o Labor commissioner at location of redg. office of the company) against a set fee say Rs.3/page.



The demands of the company are verbal or in writing e.g; to pay back the entire pay of 2.5 months, to and fro travel expenses, boarding and lodging etc……………


Let company raise its demand in writing and cite the reference of clauses according to which it has raises its demand.


If company has not provided any training then there should not be nay demand to refund the “cost of training incurred by it.".


Generically speaking if the employee has served 20 days out of 30 days notice period then he is entitled to get wages for 20 days and tender notice pay for shortfall of 10 days notice period.



If the appointment is under Apprenticeship Act then Apprenticeship Rules 1992 of The Apprentices 1961 (52 of 1961); may be looked into: e.g;


6. Registration of Contract of Apprenticeship

10. Maintenance of record of work by apprentices

SCHEDULE-V (See Rule 6): Obligations of Employer (both in the case of Major and Minor Trade Apprentices).

                                       (Under section /I of the Apprentices Act, 1961)


II Obligations of Trade Apprentice (both in case of Major and Minor Trade Apprentices)

                             (Under Section 12 of Apprentices Act. 1961).


5. In the event of premature termination of contract of apprenticeship for failure on the part of the apprentice to carry out the terms and conditions of contract, the surety or the guardian may be bound to pay the employer such amount as may be determined by the Central/State Apprenticeship Adviser as and towards the cost of training in accordance with rates as specified under rule 8 of the Apprenticeship rules,1991.


9. The first six months of the period of apprenticeship training shall be treated as period on probation. Either party may make as application to the Central/State Apprenticeship Adviser for the earlier termination of contract……………………….




You can approach Apprenticeship Advisor of your area.



Attached File : 358446081 apprenticeship rules1991.doc downloaded: 99 times

Citizen Kane (manager)     21 October 2013

@Kumar you will have to pay back everything as stipualed by the company.  Pay up and leave. This is the beginning of your career, no point getting blacklisted

agarwal (GET)     03 March 2015

Hi.. i am currently in the same situation as you were a year ago. Can you please suggest what you did and what outcome you got.. it will be really very helpful for me..

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads