Left company due to health reasons signed bond company asking 2 lac
20-Oct-2023 (In Labour & Service Law)
have left an IT company due to health and travelling issues. Before joining i signed a contract for one year. Now the company demands f&f dues from me i.e. rupees 2lacs. How do i get out of it?
Such a bond is not enforceable under Indian law as it is a penalty clause.
However, you need to plan the exit smartly so that your money/salary is not stuck with the employer at the time when you are leaving.
What happens very often is that the company refuses to pay for your work done during the notice period, and they claim that they are appropriating the salary of the notice period towards payment of compensation for breaking the bond etc - if that is the case, ask them to put it down in writing. If they refuse to write it, tell them that you are ready to give a notice, but they if they are refusing to pay you are not legally bound to serve the notice period.
You are not legally required to pay any money towards the company when you quit. Some case law suggests that an employer can recover training costs, but here the training costs cannot be very substantial. If they claim it, they need to establish what they have lost due to breach in a court of law, which is very difficult.
However, you need to plan the exit smartly so that your money/salary is not stuck with the employer at the time when you are leaving.
What happens very often is that the company refuses to pay for your work done during the notice period, and they claim that they are appropriating the salary of the notice period towards payment of compensation for breaking the bond etc - if that is the case, ask them to put it down in writing. If they refuse to write it, tell them that you are ready to give a notice, but they if they are refusing to pay you are not legally bound to serve the notice period.
You are not legally required to pay any money towards the company when you quit. Some case law suggests that an employer can recover training costs, but here the training costs cannot be very substantial. If they claim it, they need to establish what they have lost due to breach in a court of law, which is very difficult.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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