How to file a case against my company in the labour court?
24-Jul-2023 (In Labour & Service Law)
The legality of the clause in your offer letter demanding payment of 1 lakh rupees if you resign before the three-year lock-in period depends on several factors, including the terms of the contract, the nature of the work, and the applicable laws in India.
In general, such clauses are known as liquidated damages clauses. The validity of a liquidated damages clause depends on whether it is a genuine pre-estimate of the loss suffered by the company in case of breach of contract or whether it is a penalty designed to deter the employee from leaving the company. If the clause is a genuine pre-estimate of loss, it is likely to be enforceable, but if it is a penalty, it is likely to be considered void.
Under Indian Contract Act, 1872, a liquidated damages clause is enforceable if the following conditions are met:
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The damages must be a genuine pre-estimate of the loss that the company is likely to suffer due to the employee's resignation.
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The clause must be a part of the contract and must be agreed upon by both parties.
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The amount of damages must not be excessive or unreasonable.
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The damages must not be in the nature of a penalty.
Therefore, if the clause in the offer letter is a genuine pre-estimate of the loss that the company is likely to suffer due to the employee's resignation and is not in the nature of a penalty, it may be enforceable. However, if the clause is unreasonable, excessive, or designed to deter the employee from leaving the company, it may be considered void under Indian law.
It is important to note that employment contracts are governed by various laws in India, such as the Indian Contract Act, 1872, the Industrial Disputes Act, 1947, and the Payment of Wages Act, 1936.
It is advisable that you consult with me in detail about your issue so that my advice can be streamlined to ensure you a favourable outcome.
Your querry does not specify your designation nor your salary,these two factors
count while deciding whether you are a "workman" or otherwise.
Do not approach Labour Court directly,first file a complaint in Labour office,which will help/guide you.
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Antony Praveen j
Salary for not given lost 6 month and 13 years working in casual staff
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