Alex Mathew (Nil) 01 August 2011

Breach of work agreement

Sir,

I have been working in an IT company from jan2011 to april 2011, While joining the firm, I had signed a work agreement with the company on a 100 Rs Stamp paper, Stating that this is awork agreement for an year. Later they took a blank signed 25000Rs cheque from me and And told me to sign on a Printed paper, on which it is written that the company had the right to claim the cheque if the employee terminates the job within the specified duration. ANd also it was writetn that it is for the training expense of the employee.

Later when I left the company, I Cancelled the particular cheque which I gave to the Company from my bank. Two months later they send me Advocate notice that" there is not sufficient money in the account which i gave the cheque and they cannot claim and they are going to court if I do not pay the money within 2 weeks

So, as per the agreement , is the company is able to take legal action against me?.Is such work agreements valid in India? And are they able to go for a legal movement with the Paper which I signed on the second printed paper?

Kindly help me All,

Expecting all yours Helping Comments

Thank you all.

Alexis.

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5 Replies

Kumar Doab (FIN) 01 August 2011

Have you received any training worth Rs.25000/ from company? You alone can comment on it.

Since you have signed the work agreement, you should respond to the notice. Company can at the most file a recovery suite for Rs.25000/

Kindly consult a local lawyer with all records, who is competent and experienced to handle such cases involving work agreements/bonds. A fitting reply may deter the company to proceed beyond legal notice.

You are lucky that amount involved is Rs.25000/ only. There are posts in which employees have signed on bonds involving lacks of rupees. If you have the right education, experience, skills, abilities, you shall get employment without work agreement. While some of the employers may genuinely be training employees for many it seems to be a money making exercise, in which the trick bring the employee under pressure and squeeze.

There are lot and lot of such incidents and incidentally the IT companies are the featured employers in such cases.

The employee falls into trap primarily for the reason that before signing on the dotted line elders in the family, experienced and competent well wishers, or a lawyer/law firm is not consulted. In future kindly consult before you sign on the dotted line.

Alex Mathew (Nil) 02 August 2011

Thank you Kumar Doab,

They gave me a computer with internet connection and told to study the things from the internet, which was one month in duration. I dont know its worth Rs. 25000, ..

Alex Mathew (Nil) 02 August 2011

Thank you Kumar Doab,

They gave me a computer with internet connection and told to study the things from the internet, which was one month in duration. I dont know its worth Rs. 25000, ..