Hi all, I need your advice. I was working in a state PSU in the Odisha government. I signed a service agreement bond for 1+2 years with terms and conditions that if I leave the organization during the first year, I have to pay 2.16 lakh, and if in the subsequent 2 years, I have to pay 3 lakhs for breach of contract. I was getting 28k per month as a stipend during my first year of training.
After working for 6 months, I submitted a resignation letter and resigned due to very poor accommodation, no medical benefits, and no growth prospects. They sent me letter after letter, including a legal notice for recovery due to a breach of contract. From my circle of friends, I learned that some 10-15 people left without paying a single penny to the organization.
They are discriminating against me. Also, they threatened my parents and sureties to drag them into court if they don't give the money. What should I do in this situation? I am quite worried.
Thank you, Rajendra
From India
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After working for 6 months, I submitted a resignation letter and resigned due to very poor accommodation, no medical benefits, and no growth prospects. They sent me letter after letter, including a legal notice for recovery due to a breach of contract. From my circle of friends, I learned that some 10-15 people left without paying a single penny to the organization.
They are discriminating against me. Also, they threatened my parents and sureties to drag them into court if they don't give the money. What should I do in this situation? I am quite worried.
Thank you, Rajendra
From India
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Validity of Service Agreement Bonds
Mostly, this agreement is not valid. It would be valid only if there is training provided by way of proper classroom training, conducted by external trainers for which the company has spent money. Even then, the bond amount can be equivalent to the expenses incurred for training and not for the salary paid to you.
Furthermore, the amount should decrease from the time of training and not increase. You may need to consult with a lawyer regarding this matter.
From India, Mumbai
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2508Mostly, this agreement is not valid. It would be valid only if there is training provided by way of proper classroom training, conducted by external trainers for which the company has spent money. Even then, the bond amount can be equivalent to the expenses incurred for training and not for the salary paid to you.
Furthermore, the amount should decrease from the time of training and not increase. You may need to consult with a lawyer regarding this matter.
From India, Mumbai
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Legal Notice for Breach of Notice Period .docx
06b-Form VI-B (Notice of Commencement of Contract Work).pdf