Balancing MBA and HR Trainee Role: How to Handle Service Agreement After Resigning Due to Hospitalization?

Prachi Bhalika
Hello all,

I was working in a software company as an HR trainee for 2.5 months and pursuing an MBA simultaneously. However, I found it challenging to manage both responsibilities, especially when I was hospitalized. Consequently, I made the decision to resign from my position without serving a notice period. I had signed a service agreement worth 2 lakh rupees.

I am seeking advice on how to avoid being held liable to pay this amount. Your urgent assistance in this matter would be greatly appreciated.

Thank you in advance.
nathrao
Service Agreements and Breaches

There are a large number of similar queries regarding service agreements, bonds, and breaches thereof. Use the search button.

Here in your case, you have a medical ground. Secondly, did the company spend any money on specialized training, etc.? If no such expenditure is incurred, the company can do very little.

Secondly, were you on probation? Was there any mention of a notice period? Did you submit a written resignation, and if so, on what grounds? More specific details like these need to be provided for learned members to offer help or advice.
Prachi Bhalika
Hello Nathrao,

I was on a probation period, and they haven't spent any amount on my training. I informed them orally and then sent an email as well. Although there was a notice period, I did not serve it.

Moreover, they have recently sent me a notice of breach of trust, and also mentioned to deposit money within 15 days; otherwise, legal action will take place.
nathrao
How much was the notice period?

The company will not be able to recover the bond money of 2.5 lakhs in any way. The maximum they can ask for is the notice period amount. You may not receive relieving papers, etc., from this company, but this small gap can easily be covered on your CV.
nathrao
The company is trying to frighten by sending a legal notice. Who has signed the legal notice? Have you got documentation regarding hospitalization and what was the nature of the illness? Seek advice from a lawyer to frame a suitable reply. You can probably put the notice for learned members to read (mask any detail that can identify the company, etc.). Do not get scared by this notice; the company is not in a sound legal position to recover anything from you (based on what you have written).
Prachi Bhalika
Hi, sir.

I don't have any hospitalization documents since I was given bottles at home only. The document is signed by the legal department head.
nathrao
Legal department head will not be a practicing advocate, I am sure. Do not get scared. From what I have read, the company does not have legal backing for filing a case. However, consult a local advocate on the issue.
Prachi Bhalika
Hello sir, I need your help again.

While signing the bond, I gave them a surety cheque. Today, they deposited it in the bank, but the cheque bounced. Will they be filing a case against me? And will they be deducting the bond amount from me by taking legal action?
Prachi Bhalika
Nathrao sir,

Need your help again. The company is in the process of filing a case against me under section 138. They will also be filing a case for the payment of the bond amount. What should I do now? Please help.

Urgent.
vmlakshminarayanan
Addressing Service Agreement Violations and Cheque Dishonor

Your case has two dimensions. One is a violation of the service agreement signed. The second is the dishonor of a cheque. The employer has every right to file a criminal case. You should not have left the company without a notice period or information. You claim you have been hospitalized, for which proof you should have submitted to HR to demonstrate your genuineness.

It is better for you to contact your HR and request an amicable solution. They may initially demand a lot, but present your case with medical records and try to negotiate for a maximum of 1 or 2 months' salary. Please do not issue a security cheque or sign a service agreement if you are not sure about continuing with any employer. Leaving aside the legal validity aspect, it will be harassment for you as they continue to serve legal notices repeatedly.
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