• Recovery of fees for corporate MBA program

I have been working in reputed company since 2015 and enrolled in corporate 2 years full MBA program in 2016 sponsored by company with no bond and Program will be ended on March 17 2018. As per company policy there is no bond but there will be recovery of fees funded by companies recovered by employee if he/she left the program in between and resign the company. There is no obligation or locking period to stay in company after completion of program. I submitted my resignation on Feb 12th 2018 serving 90 days notice period, in this period I will complete the MBA program and will get certificate in April from Institution. Now I have been obligated to pay the entire fees of 250,000 for the program and recovery has been initiated by blocking my all 3 months Salary and rest amount by cheque, because I resigned before completing the program. I want legal advice on this matter in policy it is nowhere mention that employee could not resign before completing the course it is only mention that fee will be recovered in case employees left the program. Though I am serving notice period does not mean ex employee of the company. On my last day I am proving that I have completed the program and leaving the company. Can I file legal suit against my recovery and what could be the consequences. Please advise someone, I am so nervous, stressed and no idea to proceed further.
Asked 6 years ago in Labour

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10 Answers

1. The contract states that the employee shall be liable to refund the fee if he leaves the program. If the program itself has ended then the employee is under no liability to refund the fee.

2. It is necessary to peruse the contract for unambiguous advise, so consult a lawyer with a copy of the contract.

3. If the recovery of fee is illegal then you can surely file a civil suit to declare the said recovery illegal and seek a mandate to the employer to release your salary.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. Well, if there is no clause of recovering your fees at te time of leaving the company on serving te notice epriod then the company is stipulated not to initiate any coercive measures to recover the same.

2. So the measures of the company to withheld your salary or keeping the cheques to be used as security cheque is purely illegal.

3. I would though again check the job contract on this issue. if there is absolute no reference of recovery of fees on leaving the company after service of notice period of 90 days then you can initiate both civil and criminal proceeding to get your dues.

4. Inform the police about withholding your cheques so later of they file any cheque bouncing case you can counter the same in court.

5. Since you seem to be fresher in the profession it is advisable that you resolve the dispute amicably. Any litigation in court filed by either side may not augur well for your career.

All the best.

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

Sir, if you have not signed any bond or contract in relation to same, than you have remedy for this as this recovery is illegal.

But you stated it is a company policy for that if that applies on you or not you contract and appointment terms has to be persued.

If there is no mention of adherence of such policy than the recovery is illegal and fructuous and civil suit for same can be filed to recovery salary.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Since you have resigned from the company it would seek to recover fees paid by company for the 2 years course

2) you have submitted your resignation before completing the 2 years programme

3) itvis necessary to peruse terms of company policy to advice further

Ajay Sethi
Advocate, Mumbai
94720 Answers
7532 Consultations

5.0 on 5.0

Without going through the contract and relying on your words, the act of the management is unwarranted and can be challenged. It is an act of harassing an employee and a tactic as part of retaining employees. You may have to approach a lawyer nearby along with the documents and reply to the notice.

Rajaganapathy Ganesan
Advocate, Chennai
2132 Answers
8 Consultations

4.9 on 5.0

You can send them legal notice for the same. You can also file appropriate proceedings in the civil or labour court for the same. If you have completed the program they can't charge you.

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

Hello,

If the said clause of recovery was not there in the terms of the contract then definetly you may protest against the recovery issued by the company.

Instead of filing a case you may wait for them to file the case and then as and when you receive the notice, you may contest the same in the court of law

Regards

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

If the Policy just mentions that only in case when one abandons the MBA programme in the middle and resigns the co., it will be recovering the FEE from the concerned person, there's no trouble for you. That's because:

a. You are completing the entire programme.

b. Also, you will be relieved post serving the 90 days of notice period and by this time you'll get your certification too.

Send a legal notice to them in the instant matter and seek release of your salary that has been withheld.

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

Dear Client,

Above act is absolutely illegal and arbitrary.

No violation of appointment letter. Better approach Labour commissioner.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

The condition is that you should not leave the program before completion.

The fact is that you will be leaving the company only after the expiration of the notice period and you will be practically relieved from the company only on completion of notice period and you will be deemed to be the company's employee till the last day of working.

Therefore the company's decision to recover the amount from you is nothing but an act of harassment against you. It is illegal and invalid in law.

You may file a recovery suit by first issuing a legal demand notice

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

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