Training Cost Repayment
5 months ago
I previously asked a question and got the reply that I may need to discuss with HR. I discussed with HR and today also they showed the employee handbook clause.
Clause in appointment letter - The company will provide you extensive training during your employment with us and expects you to return the investment made on this training in the form of personal value
addition to the company.
Clause in Handbook - Incase, a new joiner leaves the company before completion of one year then the company will recover the training cost on company’s discretion. This is ensured as the company needs to follow the entire hiring process again.
My gross salary is 34k. I worked for them for 1 month. The training repayment cost they quoted is Rs. 60,000/- which they are saying include training (Data team), HR costs, and operational expenses, all of which contribute to the overall onboarding and training process.
What shall i do now? I feel this cost is quite high compared to my inhand salary of 1 month. While I joined company as a full time employee in Appointment letter- Data Engineer they are now saying you are also needed to payback your salary. What shall i do? Shall i go to court or shall i go to any grievance portal?
The company's claim of Rs. 60,000/- as training repayment cost seems unjustified and excessive compared to your one-month employment and gross salary of Rs. 34,000/-. The company's argument of including HR costs and operational expenses in the training cost is not reasonable as these expenses are part of the company's overall business operations and should not be borne by the employee. You can approach the Labor Commissioner's office in your area. They have the authority to intervene in labor disputes and ensure that employees' rights are protected. You may also consider filing a legal case against the company in the labor court. The labor court will examine the evidence and make a binding decision on the matter.
The training cost for one month employment as claimed by the Company, prima facie, appears to be arbitrary and exorbitant. So, Co's claim deserves to be challanged before the Court. As regards demand of one month salary that too required to be litigated before the Court because in the absence of terms in the offer letter/Hand Book specifying and supporting the Co's stand, Company cannot demand it from the employee on his resignation. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. Reach out to an Advocate for guidance and steps for filing a civil suit against the Company for appropriate relief in the matter.
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