Is My Service Agreement Valid Without Training? Seeking Legal Advice on Breaking It

Dear Experts,

I am working in a reputed company in India. This year, they have sent me onsite under the pretext of training and have taken a service agreement for this. Even though I orally requested them not to send me, there was never any training onsite. The service agreement has a lock-in period of 2 years. If no training was provided to me, is the service agreement legally valid? Can I come out of the service agreement without paying a violation amount? I acknowledge that the company has spent on air tickets for my travel. I was made to work during this training period onsite.

What legal actions can the company take against me? Please kindly guide me on this topic.

Thank you.

Have you ever tried to speak to your immediate supervisor and the HR personnel regarding this? Are you from an engineering company? What kind of training are you talking about? Please share more about your qualifications and experience. How many months have you been working with them?

Thank you for your response. I am from an engineering company that specializes in automotive components. Training is mentioned as "specialized technical training." I did speak about not receiving any training to my supervisor. However, it seems he chose not to take any action on this.

My Qualifications and Experience

My qualifications: BE.
Experience: 7 years.
I have been working in my company for the past 2 years.

Regards.

Understanding Specialized Technical Training

For your information, I have worked with one of India's biggest automobile industries and am now working with a multinational EPC company. Seven years of experience is indeed significant, and having worked with them for the last two years indicates that you are not a fresher and should not have expectations like a fresher.

So far, you have gained good experience, are educated, and are well aware of your work and situations. If you really think that your employer should teach you more about your work and you are there just because of agreed terms on providing you with specialized technical training, it may not be beneficial for your career. You need to have a spark and an appetite to learn; you will automatically grasp the things that can help you do a lot.

You seem worried that you have not been provided any training by them. Now, I want to ask you a question: what have you learned in these two years that you have spent with them and with your total seven years of experience?

I beg your pardon, but I just want to say that you should not be worried about service agreements or anything like that. Instead, you need to be more effective and efficient in your work so that you can be an asset for them and for your future employer. Standing on these terms will automatically make you a more successful individual, and every employer wants the same and always demands it.

Secondly, you mentioned that you have already spoken to your supervisor but found no positive response. What did you do subsequently? What about proving yourself as a learner?

Let me share something that I personally strongly believe and often say: "If you want to learn something in this world, there is no need to find a teacher for that; the teacher will find you himself."

Have you ever tried to enhance your skills with your own efforts? Do you know why I am saying this? One needs to take immediate action when faced with a negative response in such cases and should not waste time. First, you have to realize it and then take action.

Regarding the service contract, which seems meaningless to you now because you have already completed two years (or less) of your service contract as you mentioned above, it doesn't make any difference to you now.

You have spent seven years of your working life, which is a good thing. You are experienced, mature with your work, and knowledgeable. If you are still seeking training from your employer, you might be on the wrong path and need to make your own efforts for this. Let me reiterate, two years of your service contract are over, so move on to the next level.

Hope you take this positively, and I am able to convey a message.

Best of luck with your bright future.

Analyzing the Service Agreement and Overseas Training

First and foremost, you seem to be attempting ways to beat the bond—plain and simple—just because you seem to have got a better offer (could be in terms of salary or designation or both).

You mention that you were made to work during this training period on-site. Obviously, you would have been paid some on-site allowance—in US dollars—in addition to your salary in India. Yes or No?

You haven't mentioned the period for which you were abroad—how long was it?

You also mentioned 'you have requested them not to send me'—can you please mention why? When many professionals would grab such an overseas opportunity (be it for training or work-related), why didn't you want to go?

Also, please note that many companies use the word 'training' as the reason for the overseas travel of employees—especially if such travel is of short duration—in all written documentation for various reasons. So it may not be appropriate to make judgments/conclusions based solely on this premise.

Regards,
TS

I would like to answer your questions.

1. Could you please let me know what you mean by Specialized Technical Training?

Ans: There is no further definition of "specialized technical training" apart from the word itself in the service agreement. There is no such training provided for me onsite.

2. Well, 7 years of experience is really good, and you have been working with them for the last two years. It indicates that you are not a fresher and should not have expectations like a fresher.

Ans: You are absolutely right. In fact, I discussed with them not to send me onsite since I have experience and am capable enough to learn in India itself. But they were adamant about sending me onsite and binding me to the contract. They told me there is no work for me in India until I go onsite. (Regarding the discussions in point 2, there is no email proof; it was all oral discussions.)

The fact is that there has never been any kind of specialized training. Forcing an employee to go onsite simply to bind them for a period of two years is really unfair.

3. You are concerned that you have not received any training from them. Now, I want to ask you, what have you learned in these two years that you have spent with them and with your total 7 years of experience?

Ans: I signed the service agreement 5 months ago.

4. Secondly, you mentioned that you spoke to your supervisor but did not receive a positive response. What did you do next? What about proving yourself as a learner?

Ans: As usual, I am still productive and always strive to work efficiently for the company in the best possible way. I believe negativity should not affect my performance towards the company.

5. As far as the service contract is concerned, it is irrelevant now since you have already completed 2 years (or less) of your service contract, as you mentioned earlier. It does not make any difference to you now.

Ans: Point no. 3 addresses this question.

My view: The reason I raised this topic is that they have withheld my promotion this year without any justifiable reason. They have promoted my juniors, which made me feel humiliated when I inquired about it. They claim I am among the top performers, but they are not reflecting this in my HRD cycle. This is what truly concerns me. I feel like I am being targeted for receiving a lower hike and being skipped for promotion just because I am bound for 2 years.

Regarding your points, below is my clarification (answers from me):

1. First and foremost, it seems you are trying to find ways to break the bond simply because you may have received a better offer (in terms of salary or designation).

Ans: Frankly, I don't have any other offer. I do not intend to mislead the company or abandon them. The reason is as explained in point No. 5 (responded to Anil).

2. You mentioned that you were required to work during the training period onsite. Presumably, you received an onsite allowance in addition to your salary in India. Is that correct?

Ans: Yes, I received an onsite allowance in addition to my Indian salary.

3. You also stated that you requested not to be sent onsite. Can you clarify why? Many professionals would eagerly accept such an overseas opportunity for training or work-related purposes. Why did you not want to go?

Ans: For the reasons mentioned above, and because I believe I do not require any training. I am content working in India.

I sincerely thank both of you for your insights and understanding.

If you signed a service agreement, it is valid. The training need not always be in the form of a classroom. It can even be exposure to a particular situation, plant, assembly line, manufacturing process, etc. So, the company has a lot of flexibility in this case. Yes, your service agreement remains valid.

As per the Indian Contract Act of 1972, your service agreement on SPT abroad is valid. However, please clarify whether you have submitted any feedback report to your employer stating that no new training skills were provided. If so, was it acknowledged by them or not? If you have evidence of this, you can take legal action against them. This is based on my understanding of your case.

Thanks,
Jana

Hi friend, thanks for your kind reply. See this from the employer's point of view. If they say that "the course design was good, but you failed to grasp the training knowledge. Hence, it's your failure." My suggestion is to settle amicably after discussing with your HR. Alternatively, if you are willing, you can ask them to send a legal notice. You may reduce their actual claim through negotiation in court.

Such cases have occurred between a leading construction company in India and their graduate engineer trainees.

Thanks & Regards,
Jana

If onsite training can expose you to more knowledge, experience, and enhance your overall professionalism, please go ahead and have additional training experience. If you feel that it is an attempt to blunt your progress and waste your time, you are the better judge. With your experience and exposure, you can probably judge what is good for you.

Best wishes.

Regards

What does your contract say about the penalty if you do not comply with the service bond? Is there liquidated damages, and how much?

In general, liquidated damages are enforceable if reasonable and not excessive.