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Prashant   16 December 2016

Help required. how to exit an emplyment bond?

Hello, I have a simple question. I joined my current organisation (second job) in 2012 as Engineer (my qualification in 2012 Bachelors in Engineering). I decided to go for higher studies in 2014 and got company sponsorship (approimatley 40% of total expenses covered with this sponsorship). So the agreement made was that I shall receive a particular sum on monthly basis during my studies and on my return I shall have to serve the organisation for atleast 3 years. The agreement conditions are as follows

1. Serve the organisation for minimum 3 years

2. In case I leave the organisation in this duration, I am liable to pay INR 11 lacs ( approximately 80% of this amount was paid during study period). THe amount is fixed and does not reduce with time. If I leave one day before the 3rd year, I shall still be liable for 11 lacs.

3. I cannot join anyother organisation working in the simillar sector.

4. The company reserves the right to terminate my employement if it required. (Misconduct of employee etc.)

5. Notice period of 3 months in case I resign.

Its been 4 months that I am back after my studies and I wish to leave the organisation due to personal reasons. My question is can I resign from the organisation and pay the amount in installements, like monthly as it was paid to me (My intention is to pay the amount but I donot have enough resources to pay entire sum in one go).

Please advise on how to resign gracefully without any harassement from the Employer. I would like to add one point. I have been asked to leave the organisation once but things were sorted out after some discussions.

Thanks



Learning

 20 Replies

Kumar Doab (FIN)     16 December 2016

You have posted that:

"I have been asked to leave the organisation once but things were sorted out after some discussions."

 

Is it on record?

 

Is it stated in case of termiantion due to misconduct still you have to pay Rs.11lacs?

 

What was this monthly amount paid to you; stipend/living expenses etc ?

 

Why don't you explain your personal reasons and seek some remedy say: Transfer?

 

 

 

Prashant   16 December 2016

Thanks for your response. No it is not on record. The first day I was asked by HR and the next day I was asked by the MD of the company saying that they no longer have a job for me. Later in the day I had to apologise and had to offer my loyalty towards the organisation to calm down the issues.

It is not ecplicitly stated that I shall have to pay 11 lacs in case of Misconduct but what is mentioned is that I am liable to pay 11 lacs in case i leave the organisation within these 3 years.

Yes the monthly anount was around INR 47000 (including taxes) per month.

What do you mean by Transfer? Please explain?

Thanks

Kumar Doab (FIN)     16 December 2016

Your apology was verbal or in writing?

Even if communique of HR/MD were verbal these might have been inserted in your personnel file.

 

 

Kumar Doab (FIN)     16 December 2016

Apparently employer has NOT paid course fees but has granted leave and has paid some amount ( that you are unable to confirm what is it; stipend/living expenses etc..............................however it  was less than monthly salary)......................and has granted leave to study.

 

You have not posted what is this establishment and what are its service and leave and study leave rules..................etc .

 

 

 

 

 

 

Kumar Doab (FIN)     16 December 2016

You have posted that:

"I cannot join anyother organisation working in the simillar sector."

 

Indian Courts of law have consistently been declining to enforce Non Compete Clauses/Agreements as it hits right to earn livelihood and Indian Contracts Act....

 

 

 

Prashant   16 December 2016

No unfortunately all this communication is verbal. The only written communication which followed this incident is this.

email from HR "

As you know that the company sponsored your higher studies for two in xxxxxx with your commitment to serve the xxxxxx India on your return for three consecutive years.
We want to reiterate this after our discussion on this subject matter with you on xx xxxx, 2016.
Please confirm your commitment once again before we freeze your job responsibilities with xxxxxxx India and inform you about your new role. "
 
​My response "
Dear Madam,
 
Thanks for your mail. I look forward to taking up the new role. "
 
I shall upload the entire agreement later in the date (maintaining the descretion ) for your info.
 
 

Kumar Doab (FIN)     16 December 2016

Pro Rated payment might be possible.

Rest you may show all employment related docs to a very able counsel specializing in Labor/service matters for a considerd opinion on defects, merits,options.................

Prashant   16 December 2016

I shall post the entire agreement later in the evening along with my service letter. I confirm that the amount paid is less than my salary and I was pating taxes on this amount as if I never left the organisation. I shall confirm about the nature of amount once I have the document in hand.

Thanks for your patience.

Regards

Kumar Doab (FIN)     16 December 2016

Transfer; Within office/Div/Dept and even new location..............due to personal reasons and even transfer of Bond to another stablishment if possible, in your case.

 

And now after your last post your new role......

Kumar Doab (FIN)     16 December 2016

Preferably spend quality time with  a very able counsel specializing in Labor/service matters, in perso, at your location,   for a considered opinion on defects, merits,options.................

 

Online discussions have its own limitations.

Prashant   16 December 2016

Okay. Thanks for your advise and this healthy discussion. I shall take the matterwith a consel man once I have made up my mind to leave the organisation.

Regards

Kumar Doab (FIN)     16 December 2016

You are welcome.

Ritesh Maity (Labour Law Advocate)     17 December 2016

Though employment bonds/ agreements company can only recover the amount they have exclusively spent on you for providing you any special training and nothing more. 

In your case it seems you have been paid (80% of the couse fees) course/ tuition fees for higher studies which amounts to Rs.11Lacs. In that case, if you leave early before 3 years, then you are liable to pay Rs.11lacs which was actually spent on you. 

Company cannot ask you not to joining any similar/ competitive company through any bond/ agreement. This is illegal.

As per your statement you have mentioned that the company had paid you in monthly installment but have not mentioned under which head.

If the company can prove that they have actually paid Rs.11 lacs for your higher education, then only they have a good case to recover the amount through agreement/ bond. Otherwise, not.

However, it is advised that you consult a labour law advocate with all your documents (appointments/ salary slip/ agreement etc) if required.  

 

Kumar Doab (FIN)     17 December 2016

The querist has not clarified:

'What was this monthly amount paid to you; stipend/living expenses etc ?'


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