- This topic has 6 replies, 3 voices, and was last updated 1 year, 4 months ago by
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UHello everyone,
I need some legal guidance regarding a clause in my offer letter.
I joined as a fresher and have been working at a service-based IT startup for the past two years. Now that my initial two-year contract is ending, the company is asking me to sign either a one-year or a two-year contract to continue working, as they follow a contract-based system.
The main concern is a clause stating that if I leave before completing the contract period, I would be liable to pay ₹1 lakh as a penalty. From what I understand, bonded labor is illegal in India, and since I am now an experienced developer with no ongoing company-sponsored training, I don’t understand the basis for this bond amount.
Clause Excerpt:
“If you leave the employment of the Company or brings about a situation as referred in Clause 13(2)
above compelling the Company to terminate your services during the validity of the Service Period,
then you unconditionally agree to pay to the Company, an amount equal to 1,00,000 INR (Rupees
ONE LACS) as pre-estimated liquidated damages as compensation for the breach of the terms of
this Offer Letter”How enforceable is this clause in court if it comes to that? Does it hold any legal weight? I am considering signing the contract for now but leaving once I secure a better opportunity, as the company isn’t offering good hikes.
I’d appreciate insights from fellow lawyers or anyone knowledgeable in this domain to help me make an informed decision.
Thanks in advance!
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UDon’t. Don’t sign anything like this. Also check few videos on YT from LLA about this same contract. But please, DON’T sign anything stupid like this. If they threaten to fire you, let them do it.
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UOhh great to hear that.
One more thing, can the employer play underhanded tactics like restricting my relieving or experience letters? Or delaying them for sometime… -
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