Don't worry about it. They can't file FIR against you. Let them do whatever they want to do, if you not require experience letter or relieving letter from them.
Breach of contract as an intern (unpaid)
I work at a firm that has an overly rigid contract. Auor Studios expects its interns to give a 3 month notice period. It mentions a duration for a lock in period but also a notice period. Which are contradictory. It mentions that if an employee is absent for 3+ work days their contract will be terminated. And if the employee leaves without telling while having very integral information about the firm, due to breach of contract they will have to pay 3x the money given to them or 60,000 which ever is HIGHER I am a 21 year old unpaid intern. At the beginning of the month, I just stopped showing up to work and did not answer their calls. They resorted to calling my mother and then my college student coordinator. I have since blocked their numbers and even though I have no integral information and neither was any money or time for training ever spent on me they are asking me to compensate the money. They have told my college that they are going to file an FIR against me. What do I do??
Asked 5 months ago in Labour
15 Answers
- As per law, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.
- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.
- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.
- If you was unpaid intern then you cannot be considered as employee , and no notice period rule applied in your case
- If they are threatening you , then you can lodge a complaint before the police after mentioning that they are forcing you to work without any monetary benefit, and also threatening for implicating in false cases.
- However, no case maintainable on this ground , and if they send a notice to you then you can reply the same.
In the absence of any legally enforceable contractual agreement between you and them, you just do not worry about their threats in this regard.
They cannot lodge any complaint with the police in this regard because it is purely a civil matter hence police will not entertain any complaint.
If you receive any legal notice to your house address you can give a strong reply denying their allegations and can challenge them to proceed through court because they will not approach court without any base or documentary evidences to prove their cause of action
They will not file an FIR merely because you stopped coming to work .your services have been terminated if you failed to come for 3 days
no criminal case is made out at most they can sue you to recover Rs 60000
Dear Client,
Internship agreements must be reasonable and fair. Check for any clauses related to breach and penalties. Communicate your stance formally via email or letter. Keep records of all communications with the firm, including emails, messages, and call logs. Inform your college about the potential illegality and unfairness of the internship contract. Consult a lawyer to send a legal notice if the firm persists with unreasonable demands. Should you require any further clarification, please do not hesitate to contact us.
It was your mistake to join as intern in such a firm which has such an atrocious terms of contract.
Ignore them and move ahead with some other work.
This firm will do nothing to you.
Rather you can lodge complaint with Police for harassing you with threatening calls.
Thank you for your responses! A few more doubts: Is the contract I signed legally enforceable if it was an unpaid internship? And can they force me to pay the penalty for leaving abruptly? For the FIR, I was told it will be registered because I have access to confidential information and was advised by my college to do a handover. I'm going to send them an email saying I haven't accessed any company data since my last working day (also, they have the ability to restrict my access from all company information like my email/whatsapp). Is this the right move or should I say/add something else?
Asked 5 months ago
It is legally enforceable
2) you would have to pay the penalty
3) visit company personally and try to reach an amicable settlement
Dear Client,
Regarding the enforceability of the contract, as the Internship is unpaid, the enforceability of the contract terms might be questioned. In many jurisdictions, labor laws generally restricts severely obligatory clauses in unpaid Internships agreement. As you have mentioned that the agreement mentions both lock-in period and notice period, both contradicts each other. This clause might be challenged. Also there is penalty clause, which is unreasonable. Regarding the FIR threat, you can only be charged, if you have confidential Information, If you can prove that you do not have any confidential Information or you did not exploited any Information, you do not have to get bothered about the threat. Though you can send an email saying that you have not accessed any company data since your last working day, but that might not be sufficient. Appoint an advocate, who can act on your behalf to resolve the issue and defend you under any circumstances. Should you require any further clarification, please do not hesitate to contact us.
If you have not got any training and laptop and client project for live working than no need to worry about it.
The company may implicate you in false criminal case for data theft or theft or intellectual properties.
Though the company knows that they are false and when you challenge the same properly you will come out of it but it will take time, and their intention to harass you will be achieved.
If you want to avoid embarrassing situation you may negotiate with the company instead of being very rigid otherwise you can decide to fight if you have sufficient time and energy to fight back.
- Yes, you can send email for explaining and informing the true facts
The firm has sent me another email, this time saying that because I am just starting my career they've chosen to be lenient and demand that I do an immediate handover and pay them 60k for trainings/resources spent on me or they'll take me to court and demand that I pay them the full cost of damage they've incurred because of my departure. The third option is I return to work and complete 180 days as my contract states. They say that they're being lenient and want to reach an amicable solution but they are still demanding the same amount as before, the only difference being they've stated that it is an reduced amount than the actual cost of damage and that they're reducing it because I am just starting my career. I left the internship with only one month remaining of my 6 month internship, why are they saying that I'll need to work for 180 days then? But most importantly, do they have a substantial case to take me to court and win? How do I proceed now?
Asked 4 months ago
Litigation against a long drawn and expensive proposition
2) if you have committed breach of contract better to reach an amicable settlement
3) pay 60 k
The company cannot sue yo for the recovery of the said amount.
Now since the company has committed with options, their intention to recover is very clear hence even if they are planning to initiate any criminal action it will not be maintainable therefore you can refuse to oblige to their demands
Dear Client,
Since your internship is unpaid, the contract terms, especially those related to financial penalties, may be unenforceable. The contract’s conflicting terms regarding a lock-in period and notice period could render it ambiguous and legally questionable. Contracts with unclear or contradictory terms can be challenged in court. If no substantial training or resources were provided, the demand for 60,000 INR could be seen as arbitrary and unfair. The firm would need to prove that they incurred actual damages due to your departure. If the contract appears unfair, especially to a young, unpaid intern, the court may rule in your favour. You can first give a formal response stating that you did not receive substantial training or resources, making their demand for 60,000 INR unjustified. Highlight that you only had one month remaining and question the logic of now asking for an additional 180 days. Keep your college informed about the situation, particularly if the firm continues to make threats. Consult a lawyer if the dispute goes to court. Should you require any further clarification, please do not hesitate to contact us.
- As per law, no notice period is applied in your case , as there is no offer letter was issued to you
- You can send him a reply for the said email , and which is against the law and for extort amount from you.