Last February 2011, I accepted an appointment letter as Manager from a company on the condition of joining after 1 month and countersigned the appointment letter. It stated that if I wish to leave the organization, I need to give 3 months' notice; otherwise, 3 months' salary would serve as compensation.
After 1 month, I went for joining as Manager. There, I was asked to submit my passport as the company decided to send me abroad for a project with their US-based sister concerns as an Operator. I agreed as it involved good money. For the initial month until the visa arrived, I was informed verbally to work as a Consultant rather than a Manager and was paid by cheque. Everything was communicated verbally, so to avoid any issues, I ensured to get all details from them through email.
Before flying, I signed a 1-year contract with the sister concern company, stating that I am their employee. In this scenario, am I considered an employee of the original company or its sister concern? After 3-4 months of the abroad project, I was sent back to India without any explanation. The original company is now interested in retaining me as Manager, but only through verbal statements with nothing in writing. Consequently, I declined to work with them by sending a resignation via email, to which no one responded.
After 1 month, I received a notice on the company's letterhead demanding 3 months' salary as compensation, which I disregarded. After a few more months, their lawyer sent me a notice to repay the 3 months' salary, and now I have received a court summons indicating that they have filed a case against me. In this situation, what should I do? I have all communication documents between the sister concern and myself.
Please advise on how I can respond to them. I am completely perplexed because, to my knowledge, if a company seconds someone to its sister concern or franchisee with an official document, it implies that the previously signed documents are null and void. Can I file a case against them and seek compensation from them as it was their sister concern that breached the contract, not me?
From Monaco
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After 1 month, I went for joining as Manager. There, I was asked to submit my passport as the company decided to send me abroad for a project with their US-based sister concerns as an Operator. I agreed as it involved good money. For the initial month until the visa arrived, I was informed verbally to work as a Consultant rather than a Manager and was paid by cheque. Everything was communicated verbally, so to avoid any issues, I ensured to get all details from them through email.
Before flying, I signed a 1-year contract with the sister concern company, stating that I am their employee. In this scenario, am I considered an employee of the original company or its sister concern? After 3-4 months of the abroad project, I was sent back to India without any explanation. The original company is now interested in retaining me as Manager, but only through verbal statements with nothing in writing. Consequently, I declined to work with them by sending a resignation via email, to which no one responded.
After 1 month, I received a notice on the company's letterhead demanding 3 months' salary as compensation, which I disregarded. After a few more months, their lawyer sent me a notice to repay the 3 months' salary, and now I have received a court summons indicating that they have filed a case against me. In this situation, what should I do? I have all communication documents between the sister concern and myself.
Please advise on how I can respond to them. I am completely perplexed because, to my knowledge, if a company seconds someone to its sister concern or franchisee with an official document, it implies that the previously signed documents are null and void. Can I file a case against them and seek compensation from them as it was their sister concern that breached the contract, not me?
From Monaco
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Govind Singh Negi has given you very short and apt advice – just fight it out. However, I suggest avoiding filing another counter-case against the company, as that step has the chance of revealing your cards. Please hire a good lawyer; it's best to choose someone whom you already know. Maybe you can also include 'damages' in your response.
All the best.
Regards,
TS
From India, Hyderabad
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1650All the best.
Regards,
TS
From India, Hyderabad
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thanks for reply but you know how much time it will take in court for result and even if i win then what about the mental harrassment and the time lost - how it will be compensated.
From Monaco
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From Monaco
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You have a point regarding "how much time it will take in court for the result and even if I win, then what about the mental harassment and the time lost - how will it be compensated."
As for the timeframe, you need to be prepared for it. The only best-case scenario I can think of is once the company realizes that you are prepared to fight it out, they may come to the negotiating table for an out-of-court settlement.
Regarding the time lost and compensation, I have already suggested about 'damages' that you could include to cover the mental harassment, time lost, cost of other lost opportunities, etc.
All the Best.
Regards,
TS
From India, Hyderabad
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As for the timeframe, you need to be prepared for it. The only best-case scenario I can think of is once the company realizes that you are prepared to fight it out, they may come to the negotiating table for an out-of-court settlement.
Regarding the time lost and compensation, I have already suggested about 'damages' that you could include to cover the mental harassment, time lost, cost of other lost opportunities, etc.
All the Best.
Regards,
TS
From India, Hyderabad
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Legal Clarification on Negative Covenants in Employment Agreements.pdf