Leaving My Job Without Training: How Can I Challenge the Service Agreement Demands?

I got mapped to a project within a week's time of my joining. Now that I have to leave the organization, they are demanding money as I have signed a service agreement. As per the service agreement, the company will invest in my training, and in turn, I have to work for 24 months. However, I have not attended any training to date, only Knowledge Transfers (KTs). I have sent them many emails asking how they can demand money without investing in my technical training, but I have not received any replies. Instead, I have been invited for a discussion with my manager.

An optional internal project training (50 hours) was provided after office hours to many in my project by one of our colleagues, but I did not attend this training due to a busy work schedule. Many new joiners from my batch received training from external vendors for at least a month before starting on projects. Can I argue that I have not attended or used any of their training services, indicating that they have not invested in me? For your information, it has been a year since I joined this MNC, and I am a manual tester.

Please provide some valid points.

You have been in this employment for 1 year. You are bound by a service agreement of 24 months, which equals 2 years. As per the bond, you are to serve them for 2 years in exchange for the training they'd provide you with. You claim you have not attended any training sessions during the served period.

Understanding the Liability

Now, in order to understand the liability part, we would need the following information as well:

1. When does your bond come into effect? Is it from the date of your joining, from the date of your confirmation (if you were hired on probation), or after the training has been given and you are fully into service?

2. What is the bond amount to be paid?

3. What is the payment clause stated in the bond? Do you have to pay the bond amount even if the company terminates your employment?

4. Have they taken any form of money from you in advance against the bond?

5. How is your relationship with the manager who is to be sitting with you for further discussions?

6. What is the separation policy of your company?

7. Do you know if someone was under a similar employment clause and if they broke the bond, what were the consequences?

Just an insight so that we can understand your position better and hence suggest relevant things.

Bond Effectiveness

1) When does your bond come into effect? It comes into effect from the date of your joining, the date of your confirmation (if you were hired on probation), or after the training has been completed, and you are fully in service. Bond comes into effect from the date of joining.

Bond Amount

2) What is the bond amount to be paid? Rs 1 Lakh.

Payment Clause

3) What is the payment clause stated in the bond? Do you have to pay the bond amount even if the company terminates your employment? No, I don't have to pay money if the company terminates my employment. As per the company policy, we will be providing you with further training to equip you with technical competence. We believe it is important for you to understand the commitment the company is making to train you, which involves a considerable investment by CSC India. Consequently, as a condition of your training, we have proposed the following: Should you voluntarily leave CSC within 24 months from the date of joining, you must reimburse the company a sum of Rs 1,00,000 as liquidated damages.

Advance Payment

4) Have they taken any form of money from you in advance against the bond? No advance money has been taken.

Manager Relationship

5) How is your relationship with the manager who is to be sitting with you for further discussions? I have no close relationship with the manager. We smile at each other all the time.

Separation Policy

6) What is the separation policy of your company? As per the company policy, we will be providing you with further training to equip you with technical competence. We believe it is important for you to understand the commitment the company is making to train you, which involves a considerable investment by CSC India. Consequently, as a condition of your training, we have proposed the following: Should you voluntarily leave CSC within 24 months from the date of joining, you must reimburse the company a sum of Rs 1,00,000 as liquidated damages.

Consequences of Breaking the Bond

7) Do you know if someone was under a similar employment clause and if they broke the bond, what were the consequences? No, I don't know any such person.

I just spoke to a person from the training department; the person mentioned that the company will not consider case-by-case analysis for service agreements. We understand that you have not undergone training. The person further mentioned about return on investment as follows: You would have started contributing to the company only after three months of joining your project, and within a year, you will have learned something from the project - all of which will be considered as training. The person also mentioned that even though your queries are fair, the company has to go through various levels (global level) of approval to excuse you from paying money.

Concerns About Training and Cost Validity

My HR and manager know that I have not attended any technical training to date. HR questions the validity of the following costs:

• Recruiting cost.
• I would have learned from the project and hence acquired knowledge, which I can put on my CV.
• Computer usage, pantry, toilet, etc.
• I was non-billable for one month; please note that even during this time, I was not given any technical training.

During a previous discussion, he said he has nothing to do with this and he cannot interfere. It all relies on HR. Kindly let me know what I can reply if they show irrelevant costs in place of the actual training cost.

Yes, all these costs are applicable, but the argument is...

Usage of the computer, pantry, learning from the project, etc., will continue to happen even if you are resigning after the completion of your bond period. So how is this included in the bond breakage amount?

Secondly, there is always an opportunity cost. Tell them if they will recruit an experienced person, will they buy these similar arguments? Tell them that you are aware that service agreements are not viable if no training is given. So, there is no question of you paying any amount. But you do not want to have problems for both parties; you would appreciate a smooth exit.

Hence, it is really important to negotiate the situation. Tell them that you have consulted a few people in the HR industry and they claim the same.

I hope a legal advisor can shed some light on the legality of statements in the bond and how viable it would be in the court of law.

I have already spoken to HR. They know that I am not liable to pay the money, but the problem is they do not want to make an exception as they are afraid that many more could turn up asking for the same. They know my case is genuine, but they are concerned about setting a precedent.

Regards,

[QUOTE=parietal123;2066688]I have already explained this to HR. They also know that I am not liable to pay the money, but the problem is they do not want to make an exception as they are afraid that many more could turn up asking for the same. They know my case is genuine.

Seek Legal Aid

Then you will have to seek legal aid. It is understandable that a certain amount of demotivation is necessary so that employees do not just take the training and run away. However, genuine cases should be considered. Besides, the bond is not viable for you at all as no training was taken. You can approach the labor office nearby. But before you do that, I believe you should wait for a day to see if a legal advisor can be of some help.

Court Decisions on Service Bonds and Training

This matter has been dealt with in detail by courts and has been discussed repeatedly in this forum. On-the-job learning, being taught by existing staff, etc., does not count as training with reference to the service bond. Only the amount actually spent on training will count.

Since you have had no formal training provided by the company, the service bond is invalid. Your bond itself speaks of training. Since the training was not given, there is no consideration for the bond, and it cannot be implemented.

Google and you will get details of court decisions on this.

Dear Ankita/Saswata Banerjee,

Today, I had a discussion with my senior HR who said that we have consulted our legal team. They informed us that training refers to "the domain knowledge and skills I would have acquired by working for the past one year" and it does not specifically mean classroom technical training. They mentioned that I would have become productive and billable only after a month, and hence that one month would be considered as a training period.

My response was that I did not receive training even during the non-billable time but only had two or three short knowledge transfer sessions. They did not provide me with straightforward answers. Finally, my HR said, "I am telling you this for your own good; you may go to court, but it would take time and it's not beneficial for you as you have just started your career." He added, "Send an email to your manager, and he shall bring it to us; we cannot talk directly to you."

Can I file a case in the labor court?

Thank you.

Discussion with Senior HR

Today, I had a discussion with my senior HR, who said that training refers to "The domain knowledge and skills I would have acquired by working for the past one year." It does not specifically mean classroom technical training. They mentioned that I would have become productive and billable only after a month, and hence, that one month would be considered a training period.

My reply was that I did not get trained even during the non-billable time but only received two or three short-timed knowledge transfers. They did not give me straightforward replies.

Finally, my HR said, "I am telling this for your own good; you may go to court, but it would take time and it's not good for you as you have just started your career." He added, "Send a mail to your manager, and he shall bring it to us; we cannot talk directly to you."

Filing a Case in Labor Court

May I file a case in the labor court?

What is an Employment Bond?

The employment bond is basically an agreement that the company and the employee enter into, which, among other terms contained therein, states that in consideration of the training given to the employee and the money spent by the company in imparting such training, the employee will remain in the services of the company for a particular period.

Source: Employment Bond: Enforceable Or Unenforceable? | Law Teacher

For such a case, I believe if your company states they've trained you and hence you're liable for the bond breakage charge, ask them to share with you copies of the training costs that they've incurred.

Further in the said source, it is added that: "A case where the company has spent a lot of time and money in training the employee in return for which the employee signs a bond for a period of 1 year would be seen as a reasonable restriction. The same, however, cannot be in a case where the company, without giving any consideration, requires the employee to sign a bond."

I believe this clarifies further that since you have obtained no training from the company, and as your manager or trainer or whoever is responsible told you and can further endorse that you've been productive in a month's time unlike others who were given training and can give you in writing that you have received zero training, your case is strengthened further.

Steps to Take

1) First, ask the person who ensured you that you were productive in the least time without training. Convince him to share the report or data of your performance over the period of time and how many training sessions were given to you.

I do not think there can be an argument on sharing of data. You are seeking performance and training data of your own, which I believe you have the right to.

2) Ask a legal person to draft you an email so that it legally complies and is a warning to the company stating you can proceed further with the matter.

3) Of course, being the start of the career, it is difficult to manage a case and give an explanation to the next employers regarding this. However, tell them you are not interested in suing or filing a case. All you need is a peaceful exit. When the bond is not valid in your case, you are not obliged to pay even a single penny as no training is enforced on you.

4) Do not forget to include towards the end that you wish not to disturb the peaceful proceeding of either them or yours if they are willing to relieve you peacefully and agree to the fact that you are not bound by the agreement that you signed. If, however, the company forces you to pay the bond amount, you have no other option but to seek legal aid.

I am sure the lawyer will draft you a letter in the proper language, taking into consideration the legal obligations as well as liability.

All the best.

Regards

No, why should you file it in our court? Just send them a legal notice from a lawyer who is good at this work, warning them that you will take up the matter with the labor court for harassment and false claims. Let them approach the court if they wish. When they do so, your lawyer will need to handle it. I would like our seniors - KK or TS - to give a response to their comment that it does not only refer to classroom training.

I sent an email including all your points and received a reply from one of my senior managers. We have provided sufficient on-the-job training to all the resources in both Domain and Technology. Training doesn't only mean classroom training; that is just the basic information. He himself has acknowledged that it was solely on-the-job training.

I responded, "I believe I am an exception because I have not undergone any such training to date. Perhaps that's why I do not possess any certificates in my learning portal. How should we proceed further?"

I discussed with HR and received the following reply.

HR's Response

HR: We have already updated our legal team and checked with them regarding all your points. Their reply is the same—you have to pay the amount before you leave the organization; otherwise, you won't receive any relieving documents.

Me: Does that mean I have to pay Rs 1 lakh even if I have not attended training?

HR: Yes.

HR: It's not that you have not attended the training. The work you are currently doing, for which we provided the training, is what you worked on. Also, we utilized our billed resources to provide you with the KT and training for your work.

It's very clear that I have only received on-the-job training. I am leaving abroad in two weeks for higher studies. Hence, is it advisable to file a case against the organization?

I received an official email from HR regarding the exit formalities. The email mentioned that the liquidation amount in the service agreement is Rs.1,00,00, but in the agreement, it is stated as 1 lakh. What should I do now?

You want to risk paying them $10,000 and then find that they are still not releasing your documents because they want the balance of $90,000?

Look, here on this forum, we can advise you on the legality and procedure. We also discuss ethics and what should have been done. However, the decision and its consequences are entirely up to you. If you were paying me for advice, then I would need to see in detail all documents, their wording, and the impact on all stages. But as things stand, you have to make your own decision. This forum has provided you with a lot of feedback on which you can base your choices.