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Contract between empoyer and employee!!

(Querist) 01 January 2016 This query is : Resolved 
To,
Respected Experts!
First I would like to convey the New Year greetings to you and all the members!!
As a matter of fact one of my client did his Graduation in Engineering (CIVIL) from VNIT, Nagpur. The L & T Company has sponsored him under L & T Hydrocarbon- IIT Scholarship for the Post-Graduation from IIT- Madras in M-Tech (Off-Shore Structural Engineering). On completion of the course of Post-Graduation, the company has send an offering letter to him to join and serve the company for minimum guaranteed period of five (5) years as per the agreement. My client has joined the company under these following terms and conditions laid by the company:
1. The minimum guaranteed period of employment is five (5) years from the date of joining, accordingly my client has joined the company in the month of July.2015.
2. My client has undertaken that, upon failure to observe and/ or perform any or all the terms and conditions therein, to pay on written demand unconditionally and without demure a sum of Rs. 6, 50,000/- to the sponsor company as liquidated damages. A written intimation by the sponsor company that the candidate has failed in his performance of the terms and conditions herein is sufficient notice for invoking this clause, and failure to do so will entitle the company to realize the said sum by legal means including interest thereon at the rate of 12% per annum till such payment is realized.
3. In case of disputes or differences arising out of or in connection with the said agreement that would be resolved by a sole Arbitrator in accordance with the Arb and Cons Act. 1996.
4. During the course of employment, my client has appointed and joined with the company at Bangalore-India.
5. It is the sixth month of his employment and he is regularly drawing from the above company.
6. It is most unfortunate that, all of sudden the father of my client fell sick and in need of regular DIALYSIS and also his mother undergone for a major surgical operation of HERNIA.
7. My client now and then assisting them for medical aid and meanwhile, he has appeared for the recruitment of AE’s (CIVIL) in TS Genco-Hyderabad. My client belongs to Hyderabad in fact. In the result, he has got 10 rank of the state.
8. According to the rules and regulations of the recruitment board, on should get no objection from his employer (If employed anywhere).
9. According the sponsor company one should intimate the termination of employment prior three (3) months i.e. resignation.
10. My client is economically poor and unable to pay the sum of Rs. 6, 50,000/-, which he has to forgo to the company, but he can pay the same within installments. In fact, he has incurred huge amount for the treatment of his parents.
11. Whether my client can request the company to accept his resignation and to refer the matter to a arbitrator for amicable settlement i.e. to allow his to pay the sum of Rs.6, 50,000/- within monthly installments.

Please advise me suitably…
Anirudh (Expert) 01 January 2016
You may try, but the chances are very very bleak.

The intention of your client has changed and it will be very difficult for him to wriggle out of the contractual terms.
Kumar Doab (Expert) 01 January 2016
Your client could have included the names of dependent parents in Group Insurance/Mediclaim/ESIC etc and claimed the medical expenses.


You may show all documents on record starting from job advt,job application,interview call letter, offer letter, selection letter, agreement for sponsorship of study, fees paid, boarding/lodging etc if any paid, any other amount if paid, service agreement etc ............to an able counsel specializing in labor-service matters and experienced in such matters and give inputs.


Was granted leave to attend to his parents?
Was his leave refused?


Let your counsel examine the record,merits and options,...........and draft communique so as to build some favorable record.


Your client may put forward the revenue he has generated, exceptional work done, achievements beyond set targets and more than other employees, medical conditions of parents and transfer to home town where parents are located etc and seek relief.



Apparently your client has not record that can prove breach by employer, violation of rights that can render employer unworthy of being employed with.



Explore all options.


Thee employer may not agree as it may set a precedence.




Rajendra K Goyal (Expert) 05 January 2016
Agree with the advice from expert Kumar Doab.
T. Kalaiselvan, Advocate (Expert) 09 January 2016
Agreed with the views and advises by expert Mr. Kumar Doab, nothing more to add to it.


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