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Do not wish to get transferred to other location from company
18-Dec-2023 (In Labour & Service Law)
I started working in a IT company on october 3rd 2016.I have signed a bond period of 1 year.My offer letter states that if i get terminated by any means within that time,i would have to give them 1 lakh rupees for training and all.I have also signed that i would go to any location they ask me to go.But due to some reasons i am not able to go to the location they asked me to go.If i reject,they would terminate me.So,then do i need to pay the money?
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.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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