Navigating Probation and Penalty Clauses as a New Intern During COVID-19: What Are My Options?

Hope you're all doing well. This would be my first post on CiteHR, so bear with me. I am a CS graduate of this year (2020) and was hired during campus placements at an MNC (not named here for privacy purposes), initially for an internship that lasted 6 months and started in January of this year and concluded in June. After a brief break due to COVID-19, the interns, along with me, were onboarded at the beginning of this month, i.e., October (which was initially supposed to happen in August in the absence of the pandemic).

Career Plans

My career plans are to pursue a Master's and I want to do that in the fall of 2021, i.e., September 2021.

Offer Letter Clauses

The offer letter lists the following clauses:

1. You will be on probation until your successful completion. The normal probation period is 1 year but may be extended or confirmed earlier based on performance. At any time during your probationary period, either you or the Company may terminate your service by giving 30 days' notice or basic salary in lieu thereof.

2. Upon completion of the probation period and confirmation as a regular employee, you or the Company may terminate your service at any time by giving 90 days' notice or basic salary in lieu thereof.

3. Your offer is contingent upon you agreeing to authorize the company to recover a sum of INR 100,000 as the cost incurred towards your training during the course of your employment, in the event your services with the company are terminated for whatever reason, including your resignation from services, within a period of 12 months from the date of your joining the company or if you are absconding from work for a period of 8 days which will lead to eventual termination of your employment.

Penalty and Legal Considerations

Am I required to pay the penalty? How do I proceed in a way that is in the interests of both me and the company? I want to handle this genuinely because of my legal situation.

Please reply to me earlier or direct me to further resources or platforms. Thank you in advance.

Hello,

Firstly, congratulations on your graduation and securing a position at an MNC. Your query is quite specific and crucial, so let's tackle it step by step.

1. 💍 Understanding the Contract: The clauses in your contract explicitly state that if your services are terminated for any reason, including your resignation within 12 months from the date of joining, the company can recover a sum of INR 100,000 towards training costs.

2. 🎓 Pursuing Masters: Since you intend to leave for your Masters in September 2021, it falls within the 12-month period. Therefore, if you resign to pursue your Masters, the company is within their right to enforce this clause.

3. 🚆 Resignation & Notice Period: As per your contract, you can resign by giving a 30-day notice during your probation period, and a 90-day notice once confirmed as a regular employee. Ensure you adhere to this to avoid any extra complications.

Here are some steps you should consider:

1. 📡 Discuss Your Plans: Start by having an open discussion with your HR representative about your plans to pursue further studies. They can provide guidance on how this might be handled, given your specific situation.

2. 🚪 Flexibility for Studies: Ask if the company has policies for employees who want to pursue higher education. Some companies may allow a sabbatical or study leave.

3. 💶 Negotiate the Penalty: If a sabbatical or study leave isn't an option, try to negotiate the training cost recovery. Given that the pandemic has affected everyone's plans, they might be understanding.

4. 🚔 Legal Consultation: If the situation becomes complicated, consider consulting with an employment lawyer. They can provide advice based on local Chicago labor laws.

5. 🚀 Return Post-Studies: If you're open to the idea, propose returning to the company post your Masters. This might make the company more likely to waive the penalty or provide a sabbatical.

Remember to keep all communications in writing for future reference. It's crucial to maintain a professional and transparent approach throughout this process. It's a challenging situation, but with the right steps, you can work out a solution that suits both you and your employer.

Good luck with your career and your pursuit of higher education! 🎓🚀