Work from home - pay charges

Dear Client,
In India, the Government has yet to introduce any labour laws or guidelines around remote working. Section 27 of the Indian Contract Act,1872 prohibits any agreement/contract in restraint of trade and profession. The law states that an agreement/contract will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. 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. In the case where the employer can 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 un-liquidated 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. So, even if the company takes any legal action, you should defend your case suitably to nullify the claim of the company before the Court. If required, hire an Advocate experienced in service matters to navigate the issue in the right way.

Dear Client,

First check if there was a valid, signed contract that clearly mentions penalties or charges for non-completion of work. Look for clauses that mention damages, penalty or breach of contracts. Verify whether the contract was legally enforceable and signed digitally or physically.
Now a days many work-from-home scams threaten individuals with legal notices to extort money. So, if the company is threatening to take legal action, ensure they have valid grounds for doing so.

Now what you can do to safeguard yourself from any legal consequences.
- If the company is acting in bad faith, filing a consumer complaint may be an option against misleading or fraudulent practices.
- Send a Legal Reply/Counter Notice.
- Deny liability if the charges are unreasonable.
- Request proof of damages incurred by the company.

You can contact with a lawyer to understand the legal process and proceed accordingly.