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How to file a case against my company in the labour court?


24-Jul-2023 (In Labour & Service Law)
I have a 3 year commitment with my company, as per my offer letter if I break the commitment I want to pay of about 1 lakh rupee. It's not a legal bond sign. It's as per my offer letter. I resigned my company in probation period . Now they are asking me to pay 1 lakh rupee. I served my 1 month notice period. They blocked my salary and asking me to pay remaining amount. I wish to go labour court. Please tell me how to file case in labour court?
Answers (2)

Answer #1
355 votes

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:

  1. The damages must be a genuine pre-estimate of the loss that the company is likely to suffer due to the employee's resignation.

  2. The clause must be a part of the contract and must be agreed upon by both parties.

  3. The amount of damages must not be excessive or unreasonable.

  4. 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.


Answer #2
700 votes
First confirm whether you fall within the defination of "workman" as given in Industrial Disputes Act,1948.
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.

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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Antony Praveen j
Salary for not given lost 6 month and 13 years working in casual staff

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