Hi
i have come acroos a situation in which the company has signed an agreement with the employee asking for two months notice pay. However the other conditions at the time of signing of agreement which that the salary will be enhanced after three months which was probation period was not honoured by the company. When the company not increased the salary after three motnhs and not even in forth month then in fifth month i left the company without any notice period.
There was a clause that in case of any dispute the matter will be refered to an arbitrator appointed by the chairman of the company.

Now when i have left the company they are asking me to pay the following amount: -
  1. three months notice pay
  2. amount paid to hr consultants for my appointment equal to one month salary.
  3. the full month salary of two employees in training me.
  4. other expenses misc.
i just want to know is that the clause of agreement between the company and me for two months notice pay in probation period is valid or not.
Secondly is the clause restricting an employee from taking further employment is valid in law or not.
On what ground can i escape my liability if my case goes to arbitrator.
Please suggest me with any decided case laws if any.

From India, New Delhi
Dear casundeep,

The clause of agreement between the company and me for two months notice pay in probation period is valid or not.- yes it is valid

Company can recover compensation amount as per given in appointment letter. Pls check exit clause of appointment letter? what it says... what will be damages in case of breach of contract? In most of the cases ... 1 month notice period or salary in lieu. In your case notice period is 3 months so i beilve company can demand 3 month salary but demanding amount related to consultant, training , and misc. is not right.(I hope these things are not mentioned in appointment letter)

the clause restricting an employee from taking further employment is valid in law or it is not valid.

Bonded labour is abolished in India so no one can force you to do the work But you have to pay reasonable compensation for breach of contract.

what ground can i escape my liability if my case goes to arbitrator.

Talk to HR and pay reasonable compensation(i.e Notice pay). Most HR can do is hold your reliving letter,FnF and give negative PE check. I don't think you will rec arbitrator or court letter so don't worry. If by chance you rec any letter than talk to your lawyer.

For more HR information: White Eagle: legal aspect for Notice pay

From India, Hyderabad
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