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Anirban Mandal   02 June 2016

Breach of terms and conditions in offer letter

I had joined a new company very recently, on the 23rd of May. The terms and conditions of the offer letter were that I am to be paid a sum of 35,000 rupees during my probation period for a period of two or three months (depending on my performance), after which my final CTC will be decided. Though my employers had verbally communicated to me that my final CTC would be 8 lpa, they did not state it explicitly in the offer letter. For termination of employment, they terms and conditions were that I am to serve a notice period of 45 days, and if I fail to do so, I need to pay 45 days salary. No explicit mention of termination of employement during probation period has been made.

When I had joined, I was oblivious to the work environment that prevails there. It's the CEO who decides the deadlines there for technical projects, despite the fact that he is not competent to do so, and comes up with infeasible timelines. He misbehaves with his employees, often venting out on them. We had six working days every week. The project they assigned to me was of a highly non-trivial nature requiring specalised skills, and I was offered a deadline of less than two weeks to bring it to completition. Naturally, I was highly dissatisfied, since I was underpaid during the probation period and they had assigned to me work that hardly some trainee gets assigned, and they wished that I complete it in 1/4 of the period of my probation.

I resigned on 1st June, citing to the CEO that I am doing so for personal reasons. Also, that I am finding it difficult to commute four hours everyday to go to work. I did not wish to be rude or belligerent, so I did not state my actual reasons for resigning to him.

The CEO replied to me, roughly, "Thank you very much for resigning, please let me know the date at which you shall be paying penalty to the company". To this I responded that I have been in the company only for a week now, have not taken any salary until now, and that I am in probation. I won't be paying a penalty". To this, he responded that, roughly "Probation or not, I have to nonetheless pay the penalty. It's expensive to hire an employee, and the company takes this very seriously." He assured me that he shall take action againt me for this breach of contract.

To be honest, I have had significant expenses to commute to my workplace for the one week I worked there. Besides that, I had also completed a task that had been pending there form March. I did not ask them from my side for any salary for the same, but just wanted to resign without any conflicts and find a better place to work in. The company has not paid me any relocation bonus etc. They don't even have my salary account details yet.

They had me sign another NDA, and I handed over all company assets.

After all this, I have been thinking in terpidation if I have broken the law.

My question are

1. Is it necessary for me to pay 45 days worth of salary? 

2. Have I broken the law?

3. Are there any laws that grant me the liberty to work where I wish to, and if certain terms and conditions directly contradict my liberty to work, then such terms and conditions are not legally binding? 



Learning

 5 Replies

Kumar Doab (FIN)     02 June 2016

You erred for not inserting everything e.g. relocation expenses, salary after probatin  etc in the offer letter, and for not expressing the actual reason in notice of resignation and that too in such casw where you are compelled to separate in 7days.

What was your designation and nature of duties?

You were in which state?

What is this compnay ; Commercial, Industrial?

Does standing orders (Model/Certified) apply to it and your designation?

Do you have copy of notice/resignation and its POD?

Do you have copy of NDA signed by you?

If NO notice period/pay is applicable in probation period you may reply that it is not applicable (No explicit mention of termination of employement during probation period has been made.)!

 

 

Anirban Mandal   02 June 2016

Thank you very much for your response. As asked of me, I shall answer the queries. I do acknowledge that it was naive of me to not include my relocation expenses in the offer letter, and the salary after probation.

I used to previously work in Chennai, where my salary was also greater. My financial losses for unpaid days amount to 17k (had I been working for my previous company). My relocation cost was 12k. My commutation charges for going to work for seven days is around 3k. 

My designation was that of a backend software developer. The nature of duties is a long list. I shall type them out.

Responsibilities include but are not limited to:

1. Core responsibilities include software/product development including both backend and frontend as per requirement of the product with knowledge of algorithms, AI and NLP and latest technonogies.

2. Taking care of product architecture, APIs, and secutity.

3. Conceptualizing the product for future release and take strategic decisions as per the need

4. User Experience - Understanding of the users, behaviours, attitude and social interactions.

5. Helping in office responsibilities, operations, funding options, presentations, and meeting

6. Support growth of thousands of daily new users while reducing our response times

7. Participating in official discussions, core strategies, hiring and company structures.

8. To help the company in growth with any means of support if needed

 

I used to stay in Chennai, Tamil Nadu, and from there moved to Bangalore, Karnataka. I did wish to move myself in order to be able to stay together with my family.

I don't understand what is meant by standing orders. I am sorry, but I am clueless about this part.

I don't have a copy of the notice/resignation. Everything happend through emails, since the CEO happens to be out of station.

They have not yet provided me with a copy of any NDA they have made me sign.

And yes, they have not made an explicit mention of termination of employment during probation period :)

Kumar Doab (FIN)     02 June 2016

What was issued to you; offer letter or appointment letter?

YOu may by subsequent communications post misbehaviour,misconduct of bosses/employer.

Karnataka Shops  & Estns Act: 6A,8,18,39

Further; 39 (1) (7)

You may claim that there was no notice period during probation period and long notice period claimed by employer is not favorable to you.

 

There are many IT/ITeS employees unions now that may support,help ,resolve or you may have to lean an able Labor Law consultant to resolve.


Attached File : 60926 20160602210423 943705575 ind94256.pdf downloaded: 95 times

Ritesh Maity (Labour Law Advocate)     03 June 2016

You were in probation period. Was there any specific notice period during probation? If yes, then you have to serve the notice period or to pay in liue thereof even if you have worked for a single day. If you don't pay, company can initiate recovery through money suit, which is time consuming as well as expensive for a 45 days salary (52K approx). 

On the other hand, since you have resigned you can you are now entitled to get the salary for the days you have worked. You can actually claim that. 

The law does not provide any provisions for the employer to adjust such notice pay with outstanding salary. 

Contact a lawyer with offer/ appointment letter and NDA and other communications details for better advice.

Kumar Doab (FIN)     03 June 2016

You may demand to supply everything to you by Redg. Post


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