Can My Employer Legally Enforce This Breach of Contract Notice Against Me?

Hello all, I want to know the consequences of a breach of contract. I am a fresher and had joined a company, and the tenure of service was from 30th July 2014 to 13th October 2014. It had no legal bond. However, I was appointed as a confirmed employee within 15 days of my working days, where they mentioned in the offer letter a 4-month notice period to be served if confirmed, which I had signed during my joining. On 14th October 2014, I sent them a resignation letter stating that I will not be able to render my services since my mother is a cancer patient, as discussed earlier with them. After her monthly routine checkup reports, doctors have recommended an operation in the next 15 days, so I am unable to continue. Now they sent me a notice saying:

1. That as per the said contract, you were bound to serve our client for a minimum period of two years but left our company before completing the minimum period of two years. As per the said agreement, it is a serious breach of the said contract by you. Hence, you are liable to pay 2,00,000 as indemnification cost to us.

2. That as per clause 8.1 titled "Employees Duties/Responsibilities," in misbehaving activity during the official hours, "during such reasonable hours as the company business requires; activity done every hour worked for, shall be recorded on a single sheet," it is a serious breach of the said contract by you. Hence, you are liable to pay 1,00,000 as indemnification cost to us.

3. That as per clause 8.10 titled "Employees Duties/Responsibilities," you were not reporting to your reporting person on a daily basis as nominated by the company from time to time.

4. That as per clause 9, "Working Hours Policy," you were not reporting as per company policy and were taking habitual leave without informing the HR team many times.

5. That per the agreement part Annexure 3 "Job Responsibilities & Key Result Area," you did not follow daily work guidelines as per the agreement, which is a serious breach of the said contract by you. Hence, you are liable to pay 50,000 (Fifty Thousand Only) as indemnification cost to us.

6. That per clause 3, after confirmation, you must serve the notice period. This is a serious breach of the said contract.

7. That per Clause 17 Sub clause 11, "In the case of your resignation, the company should not relieve you until..." (Please refer to your appointment letter).

It was not on any bond paper; I had signed just the offer letter in which no bond was mentioned except for the 4-month notice period. I want to know whether the company can take any legal action against me for breach of contract.

Regards

Assuming that you have not signed any bond, you are on the safe side. Have you been given an appointment letter? If yes, please go through it carefully. Have you signed your acceptance of the appointment letter? As you have agreed to the notice period, you will have to serve it professionally.

Due to your personal issues, you can request the management to either grant you leave, decrease the notice period on humanitarian grounds, or find any other amicable solution. You mentioned that you received a notice from the company. Was it from the company personnel or a legal notice from an advocate? If it's from company personnel, kindly draft a detailed email in response. If it's from an advocate, you will need to consult with one.

Whatever the situation may be, I don't think you will be required to pay any amount. Wishing you all the best, and I hope for a speedy recovery for your mother.

Regards,
Alex

Since there is no bond, the company cannot force you to work for a period of 2 years. Fixed-term contracts are enforceable only in very specific circumstances. However, your notice period is generally enforceable. Even with that, the courts enforce a "reasonableness" clause. Any period of more than a month is generally looked at as excessive unless it is a general practice in the industry, meaning, in general, employers wait for that period for employees to join.

At best, the company may be able to enforce an amount equal to the notice pay not served. The rest is just posturing. In fact, if they go to court, the court is likely to throw the case out with costs. There is a rider to all the above: that we have correctly understood your issues and that you have disclosed all facts, not just what you think is important. Best you consult a lawyer who can review the matter and guide you.

Legal Implications of Breach of Contract

The person who drafted the letter to you seems to be an immature HR person who does not understand the law of the land. Meet a lawyer and send him back the reply. They will not respond back since all the claims made by them are not part of the contract. In any case, a 4-month notice period will not stand scrutiny in the court of law, since, as per the principle of natural justice, even if it is mentioned in the appointment letter.

Notice and Allegations: A Legal Perspective

Negative views brought through notice are an afterthought version only coming out from resignation. The same has not been proven on paper, nor has any opportunity been given to defend. Hence, the same will not pass through the scrutiny of the law. Any notice or pleadings are to be proved by the management. The notice seems to be vague and without any base.

Any allegation raised against the employees is to be proved by the management while affording full opportunity for a hearing, as per the principles of natural justice. I understand that only the notice period can be claimed.

Thanks,
V K Gupta

Understanding Offer Letter Terms and Legal Implications

If the offer letter mentions a duration of 4 months, then it is only for 4 months. The company cannot unilaterally extend it to 2 years or the bond amount. If nothing of that sort is mentioned, their demand won't stand in the court of law.

Even if they have mentioned that you need to serve for 2 years or else pay 2L in the offer letter, I doubt whether a mere acknowledgment would find merit. Legal experts need to answer this. As per my understanding, the terms need to be fair for both parties (employer and employee), which is absent here. An agreement that is completely loaded in favor of one party is void.

An agreement should also outline the circumstances in which the conditions can be waived. In your case, your mother has been diagnosed with cancer and needs your attention, which is a 100% valid reason. If the company goes to court demanding 2L or 3L from you, the court would likely dismiss the case and might even reprimand and penalize the company. Again, this is my understanding. I suggest consulting legal experts, showing them the offer letter and the notice you received.

Regards