Breach of employment agreement.


I am working as an IT Professional in an organization from 1st April 2013-present date. At the time on joining i signed 2 years agreement with the organization worth 1 Lakh INR which is ending on 31st March 2015. From past 6 months at this organization i have no project and sitting idle which i presume will spoil my career. Also company has provided me a training worth 32,000 INR I have resigned from my current position and my last day is 20th November, but they are asking for complete amount 1,32,000 INR for remaining four months also. I have no issues in paying them 32,000 for training and the remaining four months on the pro-rata basis but they are not agreeing that i have tried conveyancing them multiple times.

They said once you pay the full amount then only they will give the relieving and experience letter, the company which i am joining is asking to submit the relieving letter at the time of joining which is on 24th this month. If i don't pay them they will not relieve me and i would not be able to join the other company, which may spoil my career. Is there a way if i pay them for now and get my relieving letter and after that send them a legal notice to compensate me for the recovered amount, if i file a suit is there any chance that they create problems at the time of background verification for new employer, please suggest a legal way.

Answers (1)


53 votes
If in the terms and conditions of your service agreement there is a clause regarding payment of full year then you may need to pay. However, if it talks about pro rata basis then your claim is valid. Otherwise, If you pay now they will not refund the amount. I suggest you first make a formal representation to the higher authorities of your company asking them to address your grievance. Let them give a written reply to you. If they don't agree then pay the amount under protest and thereafter you can send a legal notice through a advocate.


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