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Leaving service

(Querist) 16 August 2016 This query is : Resolved 
Dear Sir,
i am in a senior position in corporate sector. However my appointment letter states min 3 years of service, otherwise I have to pay 1 year of CTC to company. THIS POINT was never informed to me when offer was made to join them, and I was surprised when I was made to sign this clause on the day of joining. A close friend has informed me that this clause is not legally tenable since it is not reciprocal. Can you please advice on the matter. The company has not allowed me to pursue higher studies, can I use this ground also to support my case for leaving them.
Kumar Doab (Expert) 16 August 2016
The liquidated damages/penalty inserted in appointment letter =1Y CTC is is lieu of what?

You have posted that you signed under duress.
Ms.Usha Kapoor (Expert) 17 August 2016
A unilateral contract applying coercion or duress on the employee all of a sadden when he joined Service He has to stay in the job for 3 years otherwise if he chooses to leave before that period 1 year CTC should be paid i s in the nature of penal damages. The contract law will award only reasonable damages and not penal damages imposed in teerrorum to the employee. This clause which has been imposed on you by coercion/duress at the time of joining and not prior to joining at the time of Interview negotiations is not legally valid and binding on you. Go to a Labor Court and get released from this onerous clause and ample relief in the form of striking out the impugned onerous unilateral coercive clause.Contact a good labor/Service Law lawyer.
professional (Querist) 17 August 2016
Thanks indeed, can I have your email id please for further communications. You are based in which court in delhi
Ms.Usha Kapoor (Expert) 17 August 2016
Dear Client,

My email address is :ushakapur310@rediffmailo.com.
Rajendra K Goyal (Expert) 17 August 2016
You have signed and accepted the terms. Full document need to be referred. Discuss with local service law expert.


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