Feeling Trapped by a Job Agreement: Can I Escape Legal Trouble After Leaving Early?

I joined a company on May 21st, 2012. I have more than four years of experience in the industry, but at that time, I had no job in hand. This company asked me to join as a trainee for just 8K, and moreover, they forced me to sign a bond (agreement) for one year on the company letterhead. The agreement stated that if an employee leaves the organization, he/she will have to return three months' salary to the company. After signing that agreement, I started working there and realized that there was no opportunity for learning and no personal growth. I felt that by staying there, I would be wasting an important year of my career, so I left the company after just 20-22 days.

Now, after around three months, the company has emailed me to clear the dues within 48 hours as I have breached the agreement, warning that they will take legal action against me.

So, please guide me on what to do. I was with that company for not even one month, did not utilize their resources, nor received any training from them, and yet they are harassing me.

Is there any way out for me, or have I been trapped by them now?

Thanks,

Kulu

Just stop worrying about any possible legal action against you because two strong facts are in your favor:

1. What you signed with the company is called a one-sided bond/agreement and has no legal footing. A one-sided agreement is an agreement where one party agrees to all the conditions imposed by another party, usually under some pressure.

2. Any employer can't demand more money than what they spent on you (including salary, training, etc.). If they do so, it is considered exploitation and harassment.

So now you have a reason to be happy. Don't forget to reply to your employer, informing them that what they are doing is harassment, and if not stopped immediately, you will initiate legal action against them.

Enjoy,

Regards,
vverma01

Clarification on Resignation Process

The question arises: did you get your resignation duly accepted by the company, and were you formally relieved, or did you simply leave the company without serving any resignation notice? You have not mentioned anything about that aspect.

I informed HR via phone that I won't be able to continue further, although I didn't submit a formal resignation. I only worked there for 20-22 days.

Thanks,
Kuldeep

Clauses Says:

You commit to serve "Company name" for a minimum period of 12 months as per the policy of "Company Name". However, once accepted by you, it will be a binding contract. This agreement supersedes any/all prior agreement(s) and understanding with the employee.

The employee, before leaving the job, will serve a 45-day prior notice to the firm. You would be required to serve the stipulated notice period, and early release would be at the sole discretion of the management. However, under "Company's" disciplinary procedure, your services can be terminated without any notice period. In case of violation of the clause, we should be free to take any legal action or impose a penalty against the employee.

Failure to comply with any conditions mentioned above in clauses will result in an immediate termination of the Employee agreement, which is completely Management's decision and, as a consequence, will require the Employee to reimburse an amount of Rs. 24,000/- to the company.

Nothing to worry about. Please forward the email you've received and the agreement to the labor court. No employer or company has the right to take any employee under coercion. An agreement is valid only if it is made freely and is mutually beneficial to both parties. Please ask the employer not to give such threats again; otherwise, you will be taking legal action against him. The agreement you've signed is totally null and void. It has no legitimate validity. You can show it to any practicing lawyer.

Thanks,
Bhumi

Just want to comment on this point. By the way, as per a verdict of the Mumbai High Court dated 18.07.2012, all software companies are also covered under the Factory Act. To get complete details of the verdict, please Google "Software firms are factories."

This means that labor laws and labor courts are applicable in software industries as well.

Thanks,
vverma01

Please see the latest discussion regarding the service bond at https://www.citehr.com/423676-legali...#ixzz24kAuWayb. I hope this helps. Let me know if you need further information.

Regards,

Regardless of what your legal position is, I don't for one second accept your assertion that your employer forced you to sign a bond. Do you even know what 'forced' means? It means under duress, threat, or fear. Are you saying that your employer threatened you to accept the job and sign the bond? If that really did happen, did you go to the cops or any other authority to either report the matter or request assistance?

Come on mate - get real!

The truth is that you accepted a position knowing what you were getting into. When they 'forced' you into signing a bond, why didn't you simply walk away if it upset you so much? Why did you sign it? Was it because you wanted a job when nobody else was offering you one? If that is true, then you weren't forced by your employer - were you? Instead, you were forced into accepting and signing by your circumstances.

As much as you may have a legal remedy, this should be a significant lesson to you for life. And, that lesson is this:

Your Choices Have Consequences!

Unfortunately, in this incident, you made the decision, but now, don't want to confront the consequences.

I truly want you to find well-wishers on this forum who can help you out of your 'self-created mess'. But, more than that, I want you to learn from this incident that the next time you make a decision, ensure you do it knowing that you and only you are accountable and responsible for any consequences that follow!

All the Best!

I have gone through the link you provided on this issue in which you and Tajsateesh analyzed the problem from a practical standpoint and worked out the cost-benefit ratio of a "choice" or options to be exercised in such situations. Good analysis.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

If I am not wrong, either party can terminate the contract WITHOUT NOTICE during the probation, isn't it correct? If this remains as a clause, why does he need to worry? Moreover, I don't think an agreement/bond signed on a company letterhead is legally valid.

Kulu, you still have the situation in your favor and may approach the Labour Department. Of course, you should estimate the time and effort investment in doing so. I guess you should immediately approach HR and submit a formal resignation within the probation period. That might help you in some other way.

When your appointment and agreement were in writing, how do you feel that without any recordable document (resignation notice), the company would be obliged to presume that you intended to leave the company at your own will? As of now, you can claim that the company forced you to sign the bond. Why wouldn't you be expected later to take the employer to court by stating that you were dismissed without resigning?

The Importance of a Formal Resignation

The formality of a resignation letter should have been observed by the employee. If a company provides employment to someone, it is their moral responsibility to adhere to the norms and ethics of employment and not to leave the job abruptly at their own discretion without fulfilling the conditions and formalities of resignation. The way you have left the company may harm your career, as no company would provide you with an experience certificate. If you mention the experience of such companies in your CV, background verification by your new employer would reveal the facts, which could significantly impact your service.

Regards,
Kuldeep

Dear Kulu, nothing to worry about. Please forward the email you received and the agreement to the labor court. No employer or company has the right to coerce any employee. An agreement is valid only if it is made freely and is mutually beneficial to both parties. Kindly ask the employer not to issue such threats again; otherwise, legal action will be taken against him. The agreement you signed is completely null and void with no legitimate validity. You can consult with any practicing lawyer regarding this matter.

Thanks,
Bhumi

Legal Implications of Signing Under Coercion

Do you believe that Mr. Kulu can prove that the agreement was signed under coercion if he signed it before joining his duty? Also, do you think that any employment should be treated as a testing ground or a transit camp for just 20-22 days, allowing an employee to switch jobs at will without adhering to any ethics or terms of employment, and even without submitting a resignation before being absent from work?

Thank you for your responses. Just to inform you all that after that email, I didn't receive any notice from that organization. It seems they wanted to instill a bit of fear in their employees with their policies.

Thanks and stay healthy.

Wishing you all a happy new year and [Merry Christmas](http://www.homeharmonizing.com/2012/12/05/8-eccentric-christmas-decorations/)

Regards