Employee Rules Or Rights - Can I Break Agreement? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Quantity Surveyor
+1 Other

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Hello all. I am working as quantity surveyor for an interior company in bangalore.. it is small company of 35 employees.. i have signed the agreement for an year. But this office ,they are not at all paying salary on time, mental harassment.. no support to employees and so many deductions they do... no hike in salary also..they will not give leaves also, no holidays, my question is if i leave the company, can they take action on me?? Or what is the possible way i can get rid of this problem..
Dear Anusha,

You have written challenges that you face arising out unethical labour practices in your post. You have also written that you signed the agreement with the company for an year. However, we do not know what type of this agreement it is and how far it is enforceable legally. Therefore, you may clarify on this point.

We can provide solution, however, it will depend on how far you are ready to take on your employer. You may put up letter of resignation. In case if employer starts talking about agreement, tell him politely that he is expected to follow admissible labour practices. If he remains adamant, which I expect him to be, then tell him that you will forced to make formal complaint to the Department of Labour with copy to Union Ministry of Labour. While talking with him, do not lose emotional control. Possibly your employer may show emotional outburst, however, from your side be calm.

When employers follow the illegal practices, generally they do it with the connivance with the local labour officers. However, in case if there is no nexus with the labour authorities then your job could become simpler. You might teach him a life long lesson.


Dinesh Divekar

Dear Anusha
As per sec 5 of payment of wages act. 1936 your employer is entitled to disburse the wages on 7th or before after completing the month. Subjected to sec 1(6) (employees eligibility under this act.) if you falls within the purview legally you can demand the salary/wages upto 7th of completing monthly however delay in disbursement of wages is the voilation of the said act. If you wish to let your employer under legal proceeding you can approach your range labour commissioner and produce your salary slip date contain delay thereof?
Thanks & Regards
HR & Labour Law Advisor

This is in addition to my above post. As per section 7(2) of payment of wages act. 1936 employer cannot made any unauthorized deductions. Various leaves and Holidays such as weekly holiday National & festival holidays, EL & CL etc. Shall be subjected to appropriate act. Applicable to your company and its eligibility criteria defined therein. So since you have been confronted the Non supportive atmosphare at your work place and the Harassment Like No Leave Over loaded work by weather name called. I guess you have signed the service bond for a year if so? If you wish to leave the company You can eigher complete the period of bond or can even break the bond by paying the amount actually incurred toward your training cost No employer can hold any employees by way of signing bond. Simply give the Notice period the clause contained thereof in your appointment letter complete the Period of Notice ask for F&F No legal action can be taken against you by way of signing service bond because holding employees in order to signing bond is completely illegal therefore it cannot be legally stand. Employee can leave the company any time for their batterment by following the clauses in appointment letter as it is amount to service agreement agreed by both employer and employee?

Thanks & Regards


HR & Labour Law Advisor

Yes i have signed an agreement for 1 year. if i leave the company within agreement time, i will have to pay 3 months salary of mine or else company will take legal action. this is the agreement words. every month we get salary on 15th, 16th. they deduct 24% PF from our salary. Acc to govt whoever gets15000+ salary, only for them PF will be deducted. but these ppl deduct according to their wish. ppl who earn 37000 for them PF is not deducted , but for 15000 they deduct. that to 24%. And also they will not give the PF account number also to us.
Dear Anusha

Legally No employer can hold the any employee for the certain period by way of signing service bond/agreement Like one year or two year however offer letter/appointment letter itself a agreement of service agreed by both employer and employee. The clause contain in offer should be legally valid. Company can put the clause of Notice period and the amount of in lieu of Notice period. Three month notice period is legally valid and payment in lieu thereof. Putting clause to hold the employee for the period of one year is completely illegal and unethical practice. Also deducting the entire 24% contribution of EPF from employee salary is the voilation of the labour law guidlines & EPF act. Employees directely can ask for their rights & statutory benefits Like EPF, ESI, bonus, Gratuity etc. As per the rules defined therein. Hence since your employer is indulging in unfair labour practice No Need to be worry for the legal action. First you can try to convience your employer seeking your rights & statutory benefits amicably if they remain adamant then you can even approach your range labour commissioner inform of voilation of labour laws. If you falls in workman category as per section 2(s) of ID act.

Thanks & Regards


HR & Labour Law Advisor


A. Company has selected the Employee for the position of QS Assistant.

B. The Employee, on joining the Company, undertook to stay in employment of the Company for a minimum period of one year and serve one month notice period to the Company in case she wants to leave the company. This agreement is valid upto 21 July 2017.

C. The Employee, as part of the consideration for the training efforts and costs

involved, agreed to sign the bond for not leaving the services of the Company for a minimum period of One year from the date of his joining the services of the Company.


1. The Employee acknowledges that substantial costs have been invested on him/her for training specifically to effectively handle the job responsibilities and any discontinuance of the employment before the expiry of the One year service would unfairly prejudice the Company, and, as such, the Employee undertakes not to leave the services of the Company, for any reason what ever, for a minimum period of One year from the date of his/her joining the services of the Company.

2. In case the Employee, for any reason, leaves the services of the Company before the said period of One year, then he/she shall forthwith pay a sum of Three months Salary is being the indemnification of the cost of training to the Company. The Employee undertakes not to dispute the amount, and shall pay the amount, before requesting for formal relieving order from the Company and at the same time company has full rights to initiate appropriate legal proceedings against the Employee.

3. That the said employee, during the period of this agreement shall not work directly or indirectly in any similar trade or business either as employer or partner or advisor or in any other capacity.

4. That the said employee shall be just and faithful to the Company in all matters and shall not at any time except under legal process, divulge to any person whosoever and shall use his/her best endeavors to prevent the publication or disclosure of any trade secrets or any business processes or any confidential matter or information concerning management decision of the Company or of its dealings, transactions, or affairs which may come to his/her knowledge.

5. Any dispute or difference arising out of this Agreement shall be resolved through arbitration. The sole Arbitrator, appointed in consultation with parties shall conduct such arbitration. The venue shall be in Bengaluru.

6. However, Company has full rights to transfer, suspend or terminate the employment of the Employee in case if he/she breaches any of the above provisions and founds dishonest to the Company at any moment of his employment. Also Company can with hold the Salary and Experience Letter of the said Employee until the final clearance of the matter.

7. In witness hereof, the parties have executed this Agreement on the day and date mentioned above Company Address.


Above mentioned is my office agreement rules. I have signed this agreement. so if i leav in between 1 year, company can take ny legal action on me??

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