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adiva (Software Engineer)     21 May 2013

Training cost and buyout amount


My company when hired me from campus asked to sign an agreement which says to payback Rs 50,000 in lieu of training and accomodation and serve for three months, if I resign before 1.5 year.

After joining the company while having rejected all other offers in hand,we were informed that the commitment period has been extended to 2 years and itw as not considered necessary to inform this to us all the while and we were made to sign the new agreement.

The letter of my appointment says to pay back the amount if i resign before 2 years while the exit policy of the company states to payback the amount if you leave  the committed period.Which one should be considered ?

The company has a policy that if an employee leaves ,he will have to serve a notice period of 3 months ,one month at max can be bought back..I have an opportunity to go for higher studies now and i can at max serve 2 months after having resignes,I have to buy back for a month.

By the time i will leave it will be 10 days short of 2 years so i tried to reason out with my company to exempt me from the training and accomodation cost to which they refused.They have witheld my salary for two months .They know I will require them for background check for the future so they are not listening to anything.

What should I do?Can I sue my company for the same?Should I question them on the accomodation amount as they have not mentioned the division out of 50 k?


 3 Replies

Adv k . mahesh (advocate)     21 May 2013

try to sette the matter amicably and leave for you higher studies 

employers are very smart in future back ground check will be there and you have to show that in your experience certificate if you go for legal battle then you have to face mental tension while you are abroad and spend money 

try to talk to your hr department head and settle the matter before leaving to aborad assure them that you will come back and join the company again 

1 Like

adiva (Software Engineer)     21 May 2013

I have done that..shown my eagerness to join again ..I have tried to settle this amicably with all the guys in the hierarchy but they have openly hinted that since I will need them for future refrerences I am bound to do as they say.

The amount is huge and i have already taken a loan for higher studies,it is impossible for me to pay such a huge amount.

I was thinking that may be a legal notice would be sufficient to get them to terms.

Adv k . mahesh (advocate)     21 May 2013

tell them that if possible after returning you will work for 6 months and show them the loan documents you had taken from banks

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