Confusion in Indemnity Clause in the offer letter.
06-Aug-2023 (In Labour & Service Law)
Here's the exact text of the clause copied from offer letter,
"[Company A] will be investing considerable sums of money in training and enhancing
the skill sets of the Employee. In consideration of the training and enhancement of skill sets that the
Employee will receive from the Company, the Employee agrees to serve in the employment of the
Company for a minimum period of 18 Months from the date of execution of the Employment Agreement.
Accordingly, if the Employee (i) fails to complete the Minimum Term; and/or (ii) fails to perform his/her
obligations under the Employment Agreement, the Employee shall pay the Company a sum of Rs.
2,50,000/- (Rupees Two Lakh Fifty Thousand only) as liquidated damages suffered by the Company
thereof."
I have accepted the offer letter from [company A] but I have recieved another offer from [company B] and I want to join company B. Will I have to pay bond money if I don't join company A now as I have already accepted the offer letter.
If you have sign the offer letter till now , then you have choice of non-joining. There is no legal issue with it. But if you have signed an agreement you will be binding for the clauses and there can be a legal issue.
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