Facing Legal Threats Over Contract Terms: Can My IT Firm Enforce This Clause?

Hi, I need legal advice on the conditional statement written in my offer letter. The statement is: In the case of relocation (prospective employees joining from locations other than Pune), the employee will be required to serve a minimum of 24 months in the organization from the Date of Joining (DOJ). Failure to comply may result in the recovery of gross CTC equivalent to 3 months, regardless of serving the notice period.

Now, I am leaving the company due to XYZ reasons in 4 months, and the company is insisting that I pay 3 months' gross salary. They are threatening legal action if I do not comply and are refusing to provide me with a relieving letter, which was agreed upon when I joined the company.

Please advise me according to Indian labor laws for software companies: Can my company take legal action against me if I do not pay the conditional amount (3 months' gross salary)? Also, please let me know if there are any alternatives to avoid paying the 3 months' gross salary.

Thank you,

Tushar

You are bound by the contract. Breach of contract can result in legal consequences. Probably you can negotiate with the company to pay back relocation expenses incurred by them during your transfer to Pune.

They are not ready for negotiation or for increasing the notice period. They are strictly enforcing payment as per the conditions.

The company may take the legal route as it is a breach of contract. The legal system is so slow that remedies will take a long time. However, one has to face the consequences of one's actions. Try to mitigate the amount they are demanding.

Have you signed an offer letter, an appointment letter, or both?

Please seek proper legal opinion from a lawyer before proceeding.

Regards,

Hello Tushar,

Please clarify the following points:

1. Is the out-of-Pune entity/Company the SAME as that in Pune? Meaning, branch office/center, OR is the transfer from one Group Company to another Group Company?

2. Is this a takeover issue/situation?

A hint to handle the 'from DOJ' point: DOJ where? At Pune OR the other entity... it's not mentioned clearly. So can be interpreted by convenience.

Regards,
TS