Dear all, I joined a company and at the time of joining company told me that there is no bond. Now I get an offer from another company but now current company asking for a liquidation amount as per the terms and condition in service agreement. The clause is attached here for your reference.
Please suggest how to handle this situation.

From India, Delhi

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The conditions of training seem to have couched in very vague terms. How long you were trained by the company? Whether you were paid any stipend or the regular salary during the training period?
Besides that in the event of the present company refusing to accept your resignation or holding your relieving letter and experience certificate, will your prospective employer allow you join?

From India, Salem
Dear sir,
I joined the company as a full time fresher and training period is of 1 year as per service agreement, after that I confirmed as a permanent employee of the company. They paid me salary. Now after 18 months from my joining, I got another offer.
The prospective employer wants relieving letter.
Please suggest to handle the situation. I don't have that much of money to pay.
Thank you

From India, Delhi
Yes, the terms and conditions are vague and impossible to be enforced through the due process. However, the liability could be held out as a bargaining chip for getting the relieving letter.
From India, Kochi
Dear member,
Already the learned members have given their views. Nevertheless, we need to know the following:
a) What was the duration of the training in number of days or weeks or months? Per day how many hours were spent in the training?
b) How the attendance for the training was recorded?
c) What kind of training material was issued to you? Did your company obtain your signature for the issue of the training material? Did the training department or any other agency conduct the test on completion of the training?
d) Did the company issue any certificate on completion of the training course? What was your grade?
The company can raise the claim against you for the liquidated damages provided they are able to prove that a specific amount was spent on the training. Otherwise the claim is not legally tenable.
Dinesh Divekar

From India, Bangalore
Dear friend,
After analysing the terms of the contract, the purpose of your leaving the job in 18 months from the date of joining, the claim of the employer for liquidated damages of 12 month's salary as a precondition for formal exit and the prospective employer's insistence on a formal relieving letter from the previous employer, if you have got the time and wherewithal, you can fight out the case by boldly quitting the present job. But you have to seek some other job for the prospective employer will not take you without a formal relieving letter.
Instead, you may have the patience to be on the job for 6 more months to complete the period of 2 years as agreed ( Provided the employer should not interpret the clause as two years from the date of completion of the training ). One year of training seems to be odd to a fresher unless it is of a systematical sort of institutionalized training sans the entire duties of the job for which the person was selected.
My considered opinion is that you can wait for the completion of the two years as agreed and try for any other better job.
Otherwise you can negotiate with the employer for a lesser sum of reimbursement and get a peaceful and formal relief.

From India, Salem
Dear Dinesh Sir,
Answers for your questions:
1. I joined as a trainee engineer as I am a fresher and I absorbed in this company after 1 year. There is no specific classes provided for training.
2. As I am a fresher, I received salary per month same as other employees and as per service agreement.
3. There is no training material given to me by the company.
4. No, there is no training department that is responsible for training and none of the exam conducted after training period.
5. They are provided me a confirmation letter after one year for absorbed as an permanent employee and no specific amount is mentioned in service agreement that is considered as a liquidated amount.
I am in trouble and have lots of confusion regarding this clause. I asked to management team regarding that but they are unable to give satisfactory answer.
Please give suggestion on this matter.
Thank you

From India, Delhi

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