• Reimbursement of notice pay at current employer

I left ex-employer company after service of 10 years.

I got offer from new company from another town when I was working at ex-employer. 

The new company urged me to buy notice period from ex employer. This cost me around 4 lac Rs. 

I was promised a reimbursement of same in 1st month salary after I join the new company.

I minuted the same on email and took their acknowledgement.

Later, I joint the new company.

16 days after I joint, I recieved my appointment letter.

Along with appointment letter, there was another document on company letterhead which mentioned details of reimbursement. In that it was written that if I leave the company in 1 year, the amount in full shall be recovered from me during full and final.

Pls note : Inspite of me clarifying, this vital information of bond was never informed to me in any form (verbally or textually) before my resignation at ex employer, and till 16 days after I joint the new company.

I was indirectly forced to sign it, as they said that if I don't sign it, I won't get my reimbursement.

I signed it, and later recieved the reimbursement in first salary after 60 days from the day I paid at ex employer. 

Now, I have resigned from new company within 2 months due to medical reasons of family member.

I have served complete notice period in new company.

Now, during notice period, the company is asking me for repayment of my reimbursement of 4 lac in full within 5 days.

I have informed them in writing that I was totally unaware and this vital information of bond was not informed to me till 2 weeks after joining new company. 

My whole family needed to be shifted from one town to another, my wife had to leave job, my sister is handicapped, parents retired. 

I had also requested the new employer to allow me to serve notice period at ex employer as I didn't have so much money to buy notice period at ex employer end. But, the new employer pressurised me so much that I had to take a loan and buy my notice period. 

If this information was provided to me at right time, I would not be deprived of my right and opportunity to decide on buyout of notice at ex employer or not.

I am also aware that the HR systems in my ex employer and my new employer, follow a process of informing the employee of any binding before the employee resigns from old job. 

Inspite of me asking new employer twice,I was never furnished with this information of 1 year claw back.

1) To what extent can the company harm me?

2) Is it right or legal for a company to hide from employee that there is a bond, and after the employee leaves old company and joins new company, they ask the employee to sign the letterhead or loose the reimbursement of 4 lac? At that point in time, they could write anything in the letterhead, and I would have to sign it. It could be anything from 2 yrs 5 yrs binding. Is this fair or legal? I feel hurt, cheated, harassed, with an unconscionable behavior from
Asked 4 years ago in Labour

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6 Answers

Let them file proceedings to recover it from you or send notice. You can take the stand that the said letter was forcibly taken from you by the said company. 

Prashant Nayak
Advocate, Mumbai
32301 Answers
191 Consultations

4.1 on 5.0

Once you sign the bond terms are binding upon you 

 

2) you have agreed that if you leave the organisation within one year of employment then you would pay reimbursement money 

 

 

 

3) if you fail to pay company can sue  you to recover the money with interest 

 

4) it is not fair on company part to have you kept in dark about the terms of bond 

Ajay Sethi
Advocate, Mumbai
96077 Answers
7724 Consultations

5.0 on 5.0

We need to go through the entire documentation the
company has made you to sign up at the time of your
employment.
Based on the specific terms of your engagement with the company, we can give an opinion with respect to the of these agreements in a court of law. 

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

4.7 on 5.0

1.  The new company's employment offer conditions is clear hence you may be liable to reimburse the reimbursed amount besides observing or complying with the other condition on resignation from the company within one year of appointment.

2. Ignorance of law canot be claimed as an excuse would be their reply even if you initiate any legal action on this and you would be the ultimate sufferer, hence you may arrive at a compromise with the company to return the amount in some easy installments instead of fighting against the organisation.

 

T Kalaiselvan
Advocate, Vellore
86278 Answers
2290 Consultations

5.0 on 5.0

1. The company cannot harm you in any way as they have suppressed the material facts about joining the new job and any contract by way of misrepresentation force or fraud is considered as null and void. 

2. If they file case against you even Then they cannot claim any money from you as they did fraud with you by not disclosing about bond period before joining new firm. 

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Bond executed under force is not maintainable neither it was informed your in advance, so bond got executed by taking undue advantage cannot be enforce though court. No harm to you.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22886 Answers
31 Consultations

4.4 on 5.0

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