Service agreement Service agreement

2 years ago

Hi team,
I signed an agreement, (on paper not on stamp) to serve my present company for the duration of 2 years from the date of joining.

I served my resignation on 15th May and it is scheduled for 2 months. As per the policy it will complete on 15 July so is my commitment to the service agreement.

The agreement mentions:
Service agreement to serve company for 2 years from the date of joining. The agreement seeks your reciprocation to company's investment in your training, and its commitment to your professional development. Our offer to you is for designated position is subject to you for the necessary service agreement. A breach in this would involve payment of 75000 INR towards damage of company. Please note that you do not need to pay any amount upfront. If you leave the company before 2 years, you need to still serve 2 months notice or pay two month salary depends on the company's discretion.

My queries are as follow:
1. Validity of the same as it is not notarized and only I have signed on it not the company.
2. If I leave on or after 15th July whether they can ask for 75000 rupees.
3. Whether the organisation can refuse to accept the resignation.
4. I got an appraisal in October, for that also they are asking us to refund the difference amount if leaving organisation before 31st July, is it legal to ask the employees for this difference amount.
5. If I leave before 15th July, what amount should I pay, considering salary Rs 25,000?
6. If I leave after 15th July, what amount I owe to them?
Thanks.

Anik

Responded 2 years ago

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A.Hi,
The agreement turned to a contract as soon as it was signed by you. In order to understand the situation you need to inform me of the date you joined the company. furthermore, if the resignation is accepted then the company can only seek the compensation provided in the agreement. The refund policy differs from company to company and can be asked by the company in any circumstance. If you decide to leave before 15th July, which is the scheduled date then you have to pay the amount that the company seeked at the time of formation of the contract. Once the period of 2years is complete you will not be required to pay any amount to the company however, it is best to give the resignation to the company after the completion of the said tenure.
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Ayantika Mondal @ Prime Legal

Responded 2 years ago

A.Hi,
As soon as you signed the agreement, it became a contract. To help me comprehend the problem, please tell me when you started working for the company. Furthermore, if the resignation is accepted, the corporation is limited to seeking the remuneration stipulated in the contract. The refund policy varies from company to company and can be requested at any time by the company. If you make the decision to leave before 15th July, which is the scheduled date then you have to pay the amount that the company seeked at the time of formation of the contract. You will not be compelled to pay any money to the company once the two-year period has ended; nonetheless, it is better to resign from the company after the two-year time has ended.

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Abhimanyu Shandilya

Responded 2 years ago

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A.Yes it is a valid agreement and it need not be notarized.
They can ask for 75000/-any time as the agreement/bond has already been executed by you.
Any organization has the policy to either accept or reject the resignation depending on the working scenario.
They can ask for it whether you want to refund or not is your choice. Yes you can fight it out - legal or illegal can't be decided just like that and needs to be debated and argued upon.
What amount to pay - you will have to discuss with the HR of the company and settle it down it them.
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