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versha (S/W Engg)     01 June 2010

Urgent help reqt: Legal Action against employer?

Hi All,

I am in the need of some quick guidance from the experts.

I had joined a Software company in the month of January 2010 and resigned in the month of March 2010. Before leaving the company I had served 15 days of notice period.

Below are the three clauses mentioned in my Offer letter. Please read them carefully.

1. You will be required to attend job related trainings and certifications at the cost of [Company name]. In Consideration of [Company Name] incurring such additional costs for the said training, you agreed to serve the company for a minimum period of 12 months from the date of joining. if you resign form services of the company in the breach of this condition you agree to pay the company Rs. 75000/- for the training. You will not be liable to pay the said amounts if your services are terminated by the company.

2. You will be on probation for initial period of 6 months, which may be extended at the sole direction of the company. During probation period company can can dispense with your services at any time, without assigning any reason, by giving 7 days of notice or 7 days basic salary in lieu thereof.

3. You are at the liberty to terminate your services by giving two months notice in writing or by paying an amount equivalent to two month's basic salary in the lieu thereof. However the relieving would be based on the sole discretion of management. The company shall, likewise, be at the liberty to terminate your services by giving 2 month's prior notice in writing or by paying an amount equal to two month's basic salary in the lieu thereof.

Even after serving 15 days of notice period(for the sake of project work extended for one week) still company was not ready to relieve me. After serving 15 days of notice I left the company. On my last day I had submitted my all company belonging like id card, laptop etc to HR and got the email confirmation of the same.

On my last day company demanded me to pay for below mentioned dues and I denied for paying with the below mentioned reason:

1. Demand to pay training bond (Rs. 75000):

I would like to mentioned that

* I had joined Company with the experience of 7 years. Out of these 7 years for last 3 years I was working on the technology for which company provided me training, same is reflected in my resume while applying job in the company.

* Before joining company I had completed my Advance Certification on that technology. During my technical interview I was evaluated rigorously on my technology skills.

Based on above points:

a. Technology Training provided by company was never required for me as I had all required Technology skills to do my job. These training were forced to me to complete company’s formalities.

b. During Training, manuals used by company were obsolete (older version of manual and software)

c. After training, Company didn't provide and Certificate, study material or demo software CD

I would like to mention that training provided by company were not at all required for me. Those trainings were enforced to me to achieve the company's yearly training targets. Because of this I have denied to pay this bond amount to company.


2. Demand to pay towards remaining notice period (One and half month salary):

My offer letter has two clauses those talks about notice period during probation period and after probation period. Refer clause 2 of my offer letter:


2. You will be on probation for initial period of 6 months, which may be extended at the sole direction of the company. During probation period company can dispense with your services at any time, without assigning any reason, by giving 7 days of notice or 7 days basic salary in lieu thereof.


This clause clearly mentions that during probation company can terminate employee's employment by giving 7 days of notice or by paying my 7 days of basic salary. But it is not mentioned that how much notice period employee should serve if he/she decides to leave employer.

In this clause company didn't mentioned the notice period condition for employee duration probation but it is clearly specified for employer.

This means that during probation either employee is bonded labour and can't quit the job at all OR he doesn’t need to provide any notice at all.

Now issue is:


Company did not ready to give me my last month salary.



Not ready to give me my accumulated PF amount.



Not ready to issue Form 16.



During notice period I had faced lot of mental pressure and pressure from the HR manager and immediate supervisor. I have email from them as a proof for that.



Now to get my one month salary and other benefits I am willing to take some legal action against employer. I have few questions in this:


How strong is my case to take legal action?



Should I take any legal action?



How to proceed for legal action?



 9 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     01 June 2010

well there is collusion between point 1 and point 3.

now as far as law is concerned, you can take legal action, as company cannot held your accumulated P.F. and last salary, you have to contest between this point.

and then about your knowledge and certificates you have prior to joining of this company, on this basis you can first file a complaint with Labour Commissioner alongwith in consultation to your local advocate.


1 Like

Ashok Yadav (Lawyer)     02 June 2010

As per your query:- You will have to pay amount of Rs. 75000/- if company files civil suit against you, because you were agree on that term when you signed the employment agreement, it does not matter at all that you had skills and knowledge previously. The company can stop payment of your other dues to ensure the payment of dues of 75000/- only. You can complain to local police for harassment by the company. If you thinks that the harassment is more then tolerence then you must complain it to the local police, after this your company will be on backfoot and will come to make compromise with you.
1 Like

versha (S/W Engg)     02 June 2010

Thanks Ashok for you reply. 

Few more questions:

1. clause 2 and 3 are conflicting with each other and these caluses are not correct from legal aspect as well. Am I correct. If I am going to file case against company on these points, where I will stand?

2. Regarding training bond

a:       Could you please let me know what is the rule?

b:       How the cost of training is calculated? Is it like that campany can demand any amount towards training by mentioning in offer letter?  One important point is in offer letter company didn't mention what trainings company is going to provide and what will be cost of each training. In my case training was given by another employee who does only this work. apart from his time company didn't spend any specific cost on traing.

c:        As per law what are the conditions should be met if company provides any training? Like is it required for company to provide any certificate for training? In my case company didn't provide any certificate to me. In company  trainings are given to achieve the targets those are set according to the international policy.  

Thanks in advance,


Abhay (XYZ)     07 June 2010

Dear Senior Advocates

Can someone guide me for the following :-

1. I was employed by a franchisee of a well known computer institute on a salary of 18,000 per month. The franchisee owner has not paid me full salary (however, he has paid me part of that), I worked there for almost 3 month. All of a sudden, he removed me from the job, without paying me the balance salary of amlost 40,000. The franchisee owner, now, unfortunately died, and the Company is not paying any attention towards the balance payment. The widow of the employer, also were not paying attention.

What would be your suggestion. (I dont have any documentry proof, however I have copies of the attendance muster)

Case no 2. : Same case-another company has hired me, on a consolidate pay of Rs. 16,000.00, but again they fired me without giving the full payment. On appointment letter, it is clearly mentioned that I will get 16000 salary.

Please guide me


Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     07 June 2010

mr. abhay pls post your new query do not interrupt in others query.

and visit local advocate who is practising in labour laws. he will first send them legal notices, then will file a case.

Rahul (Associate)     14 October 2011

I am wrkng with a pvt MNC, at the time of joining, my offer letter stated a notice period of 1 month, later at the  time of my 2nd appraisal after completing 2 yrs of service, company changed its policy and made notice period of 3 months in the appraisal letter, if i do not want to serve the entire notice period i.e 3 months, can i get my resignation acceptance and relieving. I resigned on 11th Aug 2011, also medically i am advised not to work in night shifts as I am wrkng for a BPO it's a key requirement there, can I get a acceptance and relieving on medical grounds...


kindly advise...

Kumar Doab (FIN)     15 October 2011

Dear Varsha,

It is good that you have done your home work. You seem to have a good case.

The appointment letter does not promote sense of equality on notice period. If the employer can terminate by 7 days notice; employee can also apply 7 days. During probation period 2 month's notice period is unreasonable.

It is not clear whether any training period was mentioned in your appointment letter.

Kindly confirm if the company circulated any employee rule book by email as a soft copy, or by circular as a hard copy. If you can you may obtain the copy along with standing orders.

If company has purchased a training module, software, CD etc and has trained multiple employees with the same, then at the most company can divide the cost amongst all employees, and if the module and software etc is still valid for say another 1 year, then employee can contest that company shall use the same for training in future for “n” number of employees. Companies refrain from placing bills, details etc on record and prefer to take refuge in signed acceptance of terms and conditions by employee, however in a court of law this may not work.

You have served the company for project work although it was extended hence you have not caused any loss. It is believed that company has not charged you for misconduct etc.

It shall be appropriate to seek an appointment with good offices of your appointment authority, MD, Head HR , company secretary and apply your negotiation, persuasion, persistence skills and ability to reason with logic, and settle the matter amicably in your favor. You should submit the minutes by letter thru regd/speed post, and request the good offices to intervene and provide relief to you. You should demand the acknowledgment of your notice of resignation, acceptance of your resignation, work experience/service certificate, settlement of you’re a/c and disbursement of payment, FNF statement, form 16, PF accumulation reports and withdrawal/transfer forms, acknowledgment of company property stating nothing is pending/due at your end on prescribed format of the company under original seal and signature by hand of the competent employee, NOC/NDC, relieving letter, etc. Company can sit on relieving letter and is duty bound to supply others to you.


Company can not block your PF as the funds are with the concerned PF authorities. You can submit PF forms along with covering letter for withdrawal/transfer to your company by regd/speed post, followed by email intimation and demand that company should supply you the acknowledgment issued by PF office to you thru regd/speed post. You can mention that if company wants you can supply postage prepaid self addressed envelope top the company. Alternatively you can obtain PF forms from market/local PF office and get these attested by one of the designated authority e.g. bank manager and submit these direct with concerned PF office. Kindly note it is better to transfer the PF to new employer and keep it regular for min. 10 years as you shall become eligible for pension.

If the good offices do not respond to the logics, facts, and your goodwill gestures, and do not provide relief, then you can lodge a complaint with o/o labor commissioner, on all counts including pressure/unfair/harassment you have faced. It shall be appropriate to consult elders in the family, experienced and competent well wishers, lawyer/law firm/labor consultant. If you do not send your lawyer/law firm/labor consultant to o/o labor commissioner/labor Court Company can also not send their lawyer and shall have to represent thru an employee. You can have a service lawyer however you may represent on your own under expert guidance.

As suggested by learned Mr. Yadav, you can approach law enforcement agencies.

Shalu gupta (CCE)     29 August 2014



I worked with last organization since Oct 2011 to Nov 2013. Now I want to withdraw my PF but they have not submitted that to my PF account yet. I have talked to HR many times. I am in urgent need of money. Please let me know if I can take any legal action against them.

Email : guptashalu786@gmail.com

Kumar Doab (FIN)     31 August 2014

Thee employer can not decline to attest the PF forms and has to submit the attested PF forms to concerned  PF office in 5days and supply the acknowledgment issued by PF office to employee by effective mode of communication.

Do you have POD of pF withdrawal forms submitted by you to company?

If you have proof of delivery to PF withdrawal forms to past employer you can succeed with a complaint thru RPFC in nearest PF office.

If you have proof then you can claim that the employer has not been attesting the PF forms and submitting these to PF office and hence RPFC should get penal action initiated against employer……………………….

The RPFC shall depute the PF inspector to get the PF forms attested.


 You can also submit PF withdrawal forms (obtain from nearest PF office) attested by any of the designated officials e.g. BM of your bank thru nearest PF office, under proper acknowledgment.

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