Josy Menazes

I am working in an Indian manufacturing company as a senior sales manager. Joined only 4 months prior. I have just resigned and have given a months notice as per the contract signed and asked for releiving. My HR has reverted saying that I can be relieved within a month but only after giving 2 lacs as hiring expense cost, which has been beared by the company in hiring me.This clause of hiring expense was never mentioned till date and is also not a part of my contract.On asking the HR says, that the company is not doing good and has lost 2 lacs, due to my attrition , as it has already paid the consultant 2 lac rupees.( Everything is on mail by my HR )
Please help...I am still serving my notice period..What should I do..

From India, New Delhi
Cite Contribution

The amount sounds exorbitant ! The notice period buy-out is applicable only on the number of days that isn't served.
Recovering the cost of hiring from the employee isn't legal. The amount spent on the Hiring Consultant is between the employer and the consultant. That cannot be recovered from you. Even recovering the cost of training that is often put in the Onsite Travel Agreement are not completely legal.
Please consult a lawyer. You need to prepare a well drafted letter on paying on what is left to served and nothing beyond it.
Incase the employer doesn't comply, you can take it to the Labour Commissioner.
Wish you all the best!

From India, Mumbai

The company knows that what they are asking is illegal
Cost of hiring is part of business expenses.
They cannot pass on this to employee.Follow what is written in your contract for notice period.
As mentioned above consult a lawyer and send a polite but firm letter reiterating that you have adhered to offer letter terms and will not bear any further expenditure of any nature being claimed by the company.
probably company is hoping you will negotiate and then reduce amount as any amount claimed from you is a bonus for the company.
Hold firm and refuse to make any such payment beyond what is stipulated in the offer letter which you have agreed upon.

From India, Pune
Dinesh Divekar

Dear Josy,

This is in addition to what learned members have said in their post. At this stage, tell HR department that if they do no release the relieving letter, you will be forced to make a formal complaint to the labour office. Whatever the money that they spent on recruitment was their own decision. You have got nothing to do with it.

Think of the opposite. Suppose your performance would have been too bad or you had cause some big problem to them. Would management have not terminated you? Reserving the rights of termination on the one hand but initiate recovery process in case if the employee resigns is nothing but double standards. You may not give much importance to them.

What will happen if you do not get relieving letter? As such a relieving letter that shows employment for four months is useless. Disclosure of the fact that you had resigned just after four months could cause more than damage than good. Nevertheless, getting "No Due Certificate" is important. Your ex-company should try to fix you in some or other issue.


Dinesh Divekar

From India, Bangalore

This is not legal on the part of HR to ask you to pay hiring expenses . You should refuse to pay this amount politely citing your appointment terms and conditions. Yes !! you must pay the shortfall of notice period.
Raakesh Dixit
Labour Law Consultant

From India, Delhi

Hello Josy Menazes,

I would go one step ahead of what (Cite Contribution) mentioned: "The amount sounds exorbitant !".

It's NOT an amount issue at all. It's that this Company just has misplaced notions of what hiring is all about.

Generally every Company which hires thru Agencies/Consultancies have a Standard Clause in their Agreements--called Replacement Guarantee Clause. If the candidate leaves before a specified period of time--for whatever reason(s), then the Agency has to either refund the Fees paid OR give a free replacement. Usually it's 3 months. In your case this either doesn't seem to be there OR has crossed the 3 months timeline where the Agency COULD be refusing to give a replacement.

hence the Company wants YOU to become the scapegoat.

It's BETWEEN the Company & the Agency......none of your business to get into what's essentially a relationship issue between them. least in the very few instances that we experienced.....the Agency gives a replacement for a lower one-time fee rate for cases that are technically & legally beyond the Replacement Clause effective timeline, but ETHICALLY not really so [after all it's not a large time span/gap between 3 months & 4/5/6/ months].

Coming to 'what to do', since you have the complete situation in writing, suggest inform them THRU WRITING that you are being advised to go legal & put everything that is still only verbal into writing.....basically generating a written record of the complete situation. Going by the general human psychology, the Company would hesitate to move forward, UNLESS they have something against you OR you have not put all the facts here in this posting.

And now coming to ANOTHER ANGLE. Don't you think YOU too are @ fault for resigning so soon after joining? Unless there are very strong reasons to do so? Especially @ your seniority?

Suggest give this a thought.....while technically none can stop you from joining elsewhere whenever you wish to, in the long-run you would be doing your career more damage than good when you jump without strong reasons/justifications in such a fashion.



From India, Hyderabad
Josy Menazes

Thanks All!!
1. Just need to understand, which are the mail IDs in our Indian legal system to whom I need to mark my case to, for getting a quicker reprieve.
My company is based out of Andheri E, Mumbai...
2.Will any political influence help in this case?
I do not want to go to a labour court as it involves time for visiting the courts,etc which I don't want to spend in this silly HR case.
Also, our company has a large legal team; whose core job is unlike me is to take care of these labour related issues.
What should I do if I do not get relieved on the last day of my notice period? as they may ask that I need to cough up the 2 lacs and take signatures of mine on documents stating that 2 lacs is due to be recovered for providing the relieving.

From India, New Delhi
Josy Menazes

Team CiteHR, Awaiting your revertal/suggestion on the last post sent... Regards..
From India, New Delhi

""2.Will any political influence help in this case?""
Do not get into this racket.
As far as your last query is concerned,it is quite possible that the company will insist on Rs2 lakhs being shown as outstanding in your documents.
Only way is refuse and move out without relieving documents.
On the the hand put this demand in writing and highlight its illegality and make your intention of not paying clear.
Send this to top management.At any rate your exit will be a troubled one.
There are no quick legal solutions to this.

From India, Pune
Josy Menazes

Thanks .
Is there a way wherein I can file an online Labour court case...
I have been through a site Home: National Portal of India.....
Need to understand whether it is only for Delhi or for Mumbai as well..
Please help..

From India, New Delhi
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