Saswatabanerjee
Partner - Risk Management
HR4NATION
Hr Consulting
+3 Others

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Hello all,

I want to know the consequences of breach of contract. Am a fresher and had joined a company and tenure of service was form 30th July-2014 to 13th-oct-2014.

It had no legal bond. But I was appointed as an confirmed employee in 15days of my working days, where they mentioned in the offer letter 4months of notice period to be served if confirmed, which I had signed during my joining.

On 14th Octtober-14 I sent them a resignation letter stating that i will not be able to render my services since my mother is cancer patient as discussed earlier with them and after her monthly routine checkup reports, doctors have recommended for operation in next 15days, so unable to continue.

Now they sent me a notice saying:-

1.Thet as per the said contact ,you were bound to serve our client for a minimum period of two year but to left our company before completing the minimum period of two year. As per the said agreement i.e. a serious breach of the said contact by you. Hence you are liable to pay 2.00,000 as indemnification cost to us.

2-That as per clause 8.1 titled is “Employees Duties /Responsibilities” in misbehaving activity during the official hours that “during such reasonable hours as the company business requires; activity done every hours worked for, shall be recorded single sheet” i.e. a serious breach of the said contact by you. Hence you are liable to pay 1.00,000 as indemnification cost to us.

3-That as per clause 8.10 titled is “Employees Duties /Responsibilities” that report to the person nominated by the company from time to time. We were not to reporting to your reporting person on daily manner.

4- That as per clause 9. “Titled is working hour’s policy” you were not reporting on as per company policy as well as you were taken habitual leave without information to Hr team much time.

5-That per in agreement part Annexure 3 “Job responsibilities & key result area” mention you daily work details but you were not follow daily work guideline as per agreement i.e. a serious breach of the said contact by you. Hence you are liable to pay 50,000(Fifty Thousand Only) as indemnification cost to us.

5-That per clause 3, after confirmation you must be serve notice period. This is a serious breach of the said contract.

6-That per Clause 17 Sub clause 11, “In the case of you resign company we should not be relive till”) Please refer your appointment letter)



It was not on any bond paper,i had signed just the offer letter in which no bond was mentioned except 4months notice period. I want to know whether the company can take any legal action against me for breach of contract
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HI Ms.Rashmi,
Assuming that you have not signed any bond, you are on the safe side.
Are you given an appointment letter. If yes please go through it carefully. Did you sign your acceptance to the appointment letter.
As you have agreed to the notice period, you will have to serve the notice period. You will have to be professional.
Owing to your personal issues, you can request the management to either grant you leave/ decrease the notice period on humanitarian grounds/or any other amicable solution.
You have mentioned that you got a notice from the comapny. Is it from the company personnel or a legal notice from an advocte. If its from company personnel, kindly draft one detailed mail and reply. If its from an advocate, you will have to approach one advocate.
Whatever might be the situation, i dont think you will be required to pay any amount.
All the best to you and i wish a speedy recovery for your mother.
Regards,
Alex
Since there is no bond, the company can not force you to work for a period of 2 years. Fixed term contracts are enforceable only in very specific circumstances.
However, your notice period is generally enforceable.
Even with that, the courts enforse a "reasonableness" clause. Any period of more than a month is generally looked as excessive unless it is a general practice in the industry. Meaning in general, employers wait for that period for employees to join.
At best, the company may be able to enforse amount equal to notice pay not served. The rest is just posturing. In fact, if they go to court, the court is likely to throw the case out with costs.
There is a rider to all the above : that we have correctly understood your issues correctly and that you have disclosed all facts and not just what you think is important ..... Best you consult a lawyer who can review the matter and guide you
The person who drafted the letter to you seem to be an immature HR person who does not understand the law of the land. Meet a lawyer and send him back the reply. They will not respond back, since all the claims made by them are not part of the contract. In any case, 4 months of notice period will not stand scrutiny in the court of law, since as per principle of natural justice, even if it is mentioned in the appointment letter.
Negative views brought through notice are after thought version only coming out from resignation and same are not proved on paper, nor any opportunity is given to defend. Hence, same will not pass through the scrutiny of law. Any notice or pleadings are to be proved by the management. Notice seems to be vague and without any base. I
Any allegation raised on the employees is to be proved by the management while affording full opportunity of hearing as per the principles of natural justice.
I understand that only notice period can be claimed
Thanks
V K Gupta
If the offer letter mentions of 4 months, then it is only 4 months. Company cannot unilaterally extend it to 2 years or bond amount. If nothing of that sort is mentioned, their demand won't stand in the court of law.

Even if they have mentioned that you need to serve for 2 years else need to pay 2L in the offer letter, I doubt whether a mere acknowledgment would find merit. Legal experts only need to answer. As per my understanding, the terms need to be fair on both parties (employer and employee), which is absent here. Any agreement that is loaded completely on the favour of one party is void.

An agreement also should lay down the circumstances in which the conditions shall be waived off. In your case, your Mother has been diagnosed with Cancer and she needs your attention which is 100% valid reason. If the company goes to court demanding 2L or 3L from your, court would definitely throw away the case and might even reprimand and penalise the company. Again, this is my understanding. Consult some legal experts, showing them the offer letter and notice you recd.
Dear All, i want to understand many kind of letter to draft for several occasion, is there any body to guide me this respect. Abdul Malik
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