Facing a Contract Breach Dilemma: How Should I Handle This Legal Threat?

Hi All, I need an immediate response from you.

I worked for an XYZ company in Baroda. I signed a bond of 1 year while joining. The bond states that if I breach it, I have to pay the training costs incurred by the company. I worked with the company for almost 11 months. Then, I received better opportunities and discussed my resignation with my manager. I informed him that I couldn't wait as I had another opportunity. He agreed and asked me to send the resignation directly to him, not to HR. He mentioned that once the salary is credited to my account, he would forward it to HR. I was not concerned about the salary and was willing to pay the notice period. However, the concerned person informed me that if I breach the contract, I would have to pay 6 months' salary, which could amount to around 50,000.

The company did not provide me with project-specific training. They only conducted basic training on communication skills and email etiquette for a week, which was common for all employees. My employer warned me that if I do the same, they would take legal action against me.

Seniors, please advise on what steps I should take. I am looking forward to a speedy response.

As per my information, if a contract breaches within the designated period, there will be charges the company can impose in accordance with its policies.

Another point to note is that you can search online to find out more about what liquidated damages are.

Training and Legal Implications

If no training worth the name has been given, then no court will go out of its way to compensate the company for the cost of training. You will have to prove that no training was given in court.

In my opinion, the company cannot get any substantial relief from the court. What does your offer letter say about leaving the company? Just follow that.

Clarification on Communication

Secondly, off-topic - "I need immediate response" should be "I request urgent or early response." You cannot demand responses.

Financial Clarification

Is it 50,000 thousand or is it 50,000 only? Due care is necessary when posting on a professional forum.

Dear Prashant,

Since you have a bonded appointment, I believe this is your first job, and there is a wide career waiting for you. In my opinion, you should handle the situation very tactfully and be polite with HR. You are not the first nor the last person to leave a job or breach the bond by resigning before the completion of the bond period. Please remember that currently, your hand is under the stone, and if you try to force your way out of it, it will harm your future. It is undoubtedly unlawful, but for the sake of your better future, if your approach is polite, you will definitely achieve fruitful results.

A. Prakash