- This topic has 46 replies, 38 voices, and was last updated 1 year, 4 months ago by
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UBasically I just joined a company where I have signed up an contract with an termination clause which is basically about that I can’t resign from the company until I fulfill my contract which is basically for a year and if I wish to resign I need to reimburse the yearly salary to the company but I have now resigned from the company because I felt like I wasn’t fit for the role and I have only worked for 5 days after joining, so now the company is asking me to reimburse my yearly salary whereas I haven’t received any payment from the company yet. So they are planning to take legal action against me. So what should I do now?
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UYou should ask your lawyer to draft a reply by referring to [Arkell v Pressdram](https://proftomcrick.com/2014/04/29/arkell-v-pressdram-1971/).
If I was you, I would use it to reply first as others mentioned it is illegal and they are using a scaremongering tactic.
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SWhat relevance before an Indian court? And there are tonnes of Indian cases on the topic. Are you even a lawyer?
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UThis has not gone before a court. Obviously no sane person will refer to this and reply to court documents.
This is a reply for a baseless case that if it goes to court will be dismissed.
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SReply to it using this extract
The Legality of Employment Bond in India
In India – employment bonds are legal but must comply with specific regulations. Under the Indian Contract Act of 1872 – bonds must be fair and not excessively restrictive.Bonds must also adhere to the Industrial Disputes Act of 1947 – which protects employees from unjust termination and unreasonable terms. If an employment bond imposes harsh penalties or unfair conditions – it may be challenged in court.
So, while a bond agreement between an employee and employer is enforceable – it must align with Indian labour laws and be reasonable in their terms.
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SThe ethical question is why did you accept the offer and join them?
The practical answer is to reply to the Notice, go to the nearest court complex in your city, pay around INR 1000 (max) to the lawyer and send the reply.
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PIt’s fake, unfair contracts don’t stand in court, there have been similar cases struck down previously.
1. Ignore empty legal threats, for a company to claim anything, they need to show actual financial losses (eg. training costs etc)
2. Get a lawyer and send a legal noticename & shame the company
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MSay F off and walk away. If they take you to court they will face a lot of media scrutiny and bad press.
You may get legal notices if they have a legal team. You can ignore them. Companies with bond type policies for newbies are not great employers. Bonds are ok to recover the money spent on training you and where they are limited to the trading value. Even then there is no support for corporates legally.
If things get to court, there are a lot more things you can do.
Like make very factual statement and send it out to every customer decision maker and student body of educational institutions they hire from.
This will tarnish the image of the firm adversely and still not be defamation as you can only state facts.
On the other hand, you can withdraw your resignation, not do any work, ask for frequent meeting with your manager and HR and start discussing your suicidal and depressive feelings.be weird and eccentric enough to not break any rules but be disgusting and weird at the same time. Ask dumb questions at all team meetings. Eg will you get samosas and starbucks tea for coming for the meeting. Then act unconcerned about the response.
They will die to fire you or encourage you to exit without any strings attached. -
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STo prevent default judgement in the company’s favor that you won’t be able to fight later. Despite obviously scummy practices they’re still following the law to the letter. You better too or the blind justice will only see their side (however made up it is) and yours simply as an absentee with presumed guilt.
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Wdid the company send you any legal notice? is your UAN created? Does your PF account show the new employer name?
if no, leave the company and move ahead, no need to worry.
they can’t even justify the year’s salary to be paid, they wouldn’t even have started giving trainings to you. just take a chill pill,If you get a legal notice then respond to it with a help of a good lawyer
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KI resigned next day after joining, as for being 5 minutes late, HR asked me to take half day off. I said I will take whole day off (on the second day), and they said, no we mark half day off, but you work whole day. So I resigned and left. They kept sending letters and letters as my bond was 2 years of salary. It was 20 years ago and nothing happened.
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UContact IT employees union (citu)
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V1. Has the organization provide you with any training? Or spent money on your training?
2. Was there some bond executed with the organisation apart from the employment contract?
3. Did you receive any bonus, relocation benefits or your previous notice period been bought out.
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VFor the benefit of people reading. A simple search online would lead you to this.
Employment bonds are legal in India, governed primarily by the Indian Contract Act, 1872. They are agreements where an employee commits to work for a specific period, often in exchange for training or specialized skills provided by the employer. If the employee leaves before this period ends, they may be required to pay a penalty, typically termed as “liquidated damages”12.
However, the enforceability of these bonds hinges on several factors:
Reasonableness: The terms of the bond must be fair and not excessively restrictive. Courts assess whether the duration, penalties, and obligations are reasonable125.
Legitimate Interests: The bond should protect the employer’s legitimate interests, such as safeguarding confidential information or recovering training costs34.
Voluntary Consent: Both parties must enter into the agreement willingly and with a clear understanding of its implications12.
Public Policy Compliance: The bond must not violate public policy or statutory provisions, such as employee rights under the Industrial Disputes Act24.
If any term is deemed unreasonable or oppressive, it may be challenged in court and potentially rendered unenforceable. Thus, while employment bonds can serve as a deterrent against premature resignation, they must be crafted carefully to ensure compliance with legal standards34.
Now, alot depends on the company, your role, time + resources spent on you. In a 5 day period I don’t think substantial costs would have been incurred by the company.
Also, what is your CTC.
Cause eventually the company is fighting of this amount and if this amount is less than 6 lacs, that organisation is not going to litigate this. Simply from a cost benefit analysis this wouldn’t be worth their time.
Also, you don’t need their work experience nor do you need a relieving letter.
I don’t expect them to take this forward and I assume all the notices you have received is from their in house counsel of at all.
If the notice is being sent through a lawyer on the lawyers letter head and if this lawyer is a decently established one then you may have some issues and it might make sense to seek legal counsel in replying to this letter.
If there were any actions or non compliance that you have observed then mention it in your response.
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Sye jo don’t ignore bol rhe hai are you guys lwyers your self?? apne goto pe hath rakh ke kasam kha ke batana
and for op it’s upto you, you can negotiate the best they can do is put a mark on your employment record marking you absconding where you’ll get stuck working in the same kind of companies for the next couple of years unless the next HR decides to believe your story
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