Feeling Stuck in a 3-Year Commitment: Can I Resign Without Paying Penalties?

harikrushna-vasani
Hello, I am working in a private IT firm for the last 2+ years in Maharashtra. One year ago, I received a good offer, but my company retained me with an 8-9% higher salary than the available offer. In return, I signed a 3-year commitment (on scanned company letterhead). I received verbal confirmation that my appraisals would occur according to the company's processes every year.

Among other clauses, there are two important points:

1) It is agreed by you that for any changes, an appraisal will be conducted at the discretion of the company, and the company's decision will be final.
2) You agree that a violation of the above would result in a direct loss to the company, and you will be required to pay the difference between the previous and current remuneration for the remainder of the 3-year agreed period.

Now, having served for more than a year and with the salary cycle passed, they informed me unexpectedly that the company will not provide an increment for the next 2 years. No one had informed me at the time of the agreement, and I was told otherwise.

In this situation, I am feeling highly demotivated and do not wish to continue any longer. If I resign with a notice period, do I need to pay anything to the company? Are there any alternatives? Can the company withhold my relieving or experience letter?
saswatabanerjee
If you have signed the agreement promising to pay back the differential salary in case you leave, then obviously they have the right. Why did you sign such a clause? The enforceability will depend on a number of things. You may need to speak to a lawyer.
KK!HR
To clarify further, an agreement made on a piece of paper is as valid as signing it on stamp paper. So it doesn't matter that you signed the scanned copy of the agreement prepared on letterhead.

Legal Advice on One-Sided Agreement
The agreement terms are one-sided and hence inequitable. Take legal advice from a good civil law practitioner regarding your chances.
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