If the company has invested money for the training and skill development of employee, then to that extend the company is in a position to demand reimbursement from the employee who leaves without serving the company till such costs are reimbursed by way of availing services from him. However, no negative covenant is permitted even if it is there in the contract of employment.
Negative covenant refers to restrictions regarding leaving the company or joining other companies, perhaps competitors. The Indian law does not recognize such restrictive agreements. As per Section 27 of the Indian Contract Act, 1872, such contracts to that extent are void and against public policy. No employee can be prevented from pursuing similar work if he/she quits the present one, merely on the pretext that it will be detrimental to the previous employer.
The Gujarat High Court in this context, in the case of Sandhya Organic Chemicals v. United Phosphorous held that, an employee cannot be prevented from utilizing the knowledge and experience that he has gained while being in employment.
Regards,
Madhu.T.K