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Author Topic: Need advise - Ex-employer sent letter to pay contract amount  (Read 768 times)

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Offline Kishor

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Need advise - Ex-employer sent letter to pay contract amount
« on: October 07, 2013, 09:56:01 PM »
I need expertise help in my scenario. I start from first....

As a fresher, I joined a company 15 month back. In appointment letter there was condition that if i leave the company before 2 years then as per the appointment letter contract I need to pay 60 thousand to the company. This is on company letter head.

Unfortunately, I decided to quit the company after 11 month as there was no growth prospect (I am avoiding to speak on work culture). There were many problems like salary was not credited on time, normally it was delayed 20-25 days.

I resigned and requested company to issue experience letter and reliving letter against my 2 month’s salary. My last drawn salary was 7 thousand per month. But company was not agreed to issue letters without 60 thousand. As I had worked for 11 months and had to give justification to my future employers about this period, getting letters was very important for me.

My company asked me to give in writing that i will pay 60 thousand in instalment in next 3 months period so they will issue me letters. As letters were important to me, I gave written note on white paper. The company hold my last moth salary and also taken 12 thousand cheque as first instalment and issued me reliving letter and experience letter without serving notice period.

After that I joined other company and stated working and not paid any further instalment to old company (as first instalment was not deposited by company). Now its 6 month’s past when i left my old company but they did not deposit the cheque (given as first instalment) during these 6 months period and suddenly last week they deposited the cheque which got bounce due to exceeded cheque validity period.

Now I have received warning letter from my old company to pay 60 thousand before end of month.

My Question is:

Is such clause legal in India, employee would have to pay the money before leaving the company at a particular time period? Although the company has not spent any money on staff training and development?

According to me, employers are taking advantage of need of employment by such clauses.

As per my understanding, I have paid reasonable compensation amount which is equivalent to my one month salary (7 thousand).

In my case, it is not worth to pay 60 thousand to old company. Please advise me on 1) how I will reply to old company to stop sending warning letters. 2) If old company approach to court then what next process need to follow by me. 3) What if old company send any letter to my current company to remove me from service.


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