Signed contract with employer
I am an Electronic Design Professional and I stay in Bangalore. I have around 10 years of working experience.
An Indian company wanted to send me to the USA. There were three rounds of telephonic interviews which I cracked and slowly got interested in this opportunity.
One day they called me to their office and made me sign two contracts (one for US and one for India). The Indian contract imposes a 6 lakhs rupees obligation, if I refuse to travel to USA. I was in a dilemma to sign them or not but it was told that, it had to be signed immediately to start on the Visa processing. I was also given a US offer letter where they had compromised with my US salary too. Was a bit carried away at that point of time and signed the contracts.
Later, as I thought back, I am not really interested to get into an employment with this consultancy. What can I do now ? Is there a way to get a waiver from this ? Their expense for Visa would be at max ~3000USD (2 lakhs INR). And even after making request, they didn't provide me a copy of the employment contract.
Asked 3 years ago in Business Law from Bangalore, Karnataka
1) it is necessary to go through the contracts signed by you to advice .
2) send email to them requesting the company to furnish you copy of employment contract signed by you for your record
3) also inform the company that you would be unable to travel to USA unless copy of the contract is forwarded to you .
4) on obtaining copy of the said contracts consult a local lawyer
Thanks Ajay, I'll try to get the contract from them. As, I have recently signed them, its fresh in my mind, as follows -
India Contract -
The contract is enforced from the date of signing it.
This contract becomes void in either of the following scenarios-
1. On reporting of the employee at US job location
2. Completion of 18 months from the day of signing
3. On receiving rejection letter of the H1B Work Permit application
Otherwise, If the candidate refuse to travel to USA he will have to pay 6lakhs INR as damage caused. (Please note that No Breakup of cost given here)
This contract is enforced upon arrival of the employee at US job location
If the employee leaves the employer before 2 years he will have to pay 15000USD, incurred by the employer in training the employee.
Asked 3 years ago
1) as far as US contract is concerned it contains provision for recovery of liquidated damages . it can be enforced in court of law as company has pent money on your training and if you leave the organisation before expiry of 2 years company would suffer great loss . it would have to incur expenses on recruitment and training of employee
2) as far as indian contract is concerned you have duly signed the contract . sum of Rs 6lakhs sought to be recovered is indeed steep particularly so when visa fees are around Rs 2 lakhs only . the company would have to prove that on account of your failure to join it suffered loss of Rs 6lakhs .
3) it is in your interest to honour the contracts signed by you if you dont want to be drawn into lengthy litigation
As far as contract is considered they can file a case for breach of contract and for cheating. They can recover the amount and the damages and file a criminal case for cheating and it may effect your career.see whether You get H1 B.if it is it is gone.or you will of think of they rejected you from going
1. Immediately arrange for a medical certificate with advice of not to travel or some thing like this,
2. Based on the said medical certificate/advice write a letter to the employer cancelling the contract and asking them not to initiate VISa processing exercise,
3. You will be able to escape maximum by paying the amount they have paid in processing your VISA upto to the date of your cancelling the contract.
1. take copy of contract from co asap.
2.send letter to co. informing them that you want to cancel contract for some problems in family.
3. ask them to stop visa making process.
4.pay the amount which co.have spent in processing visa formalities to avoid legal problems.
Advocate, New Delhi
It is an after thought by you not to join the Company in USA after fulfilling the preliminary obligations set out by the company. Send a registered post to the company asking for a copy of employment contract, which you have signed and inform the company that due to change in circumstances in your personal life you can not take up job in USA and inform them to stop visa processing of your application and at the most you may have to shell down the money the company has spent for your visa processing.
1. A contract once signed binds the parties to it in totality. The clauses of the contract are sacrosanct which ought to be honoured. In the event that either party deviates from the contract the other party is normally vested with the right to bring legal proceedings against the violator.
2. You signed on the contract out of your own free volition. The Indian contract binds you to pay to the company liquidated damages of Rs.6 lakhs. Although without perusing the impact of other clauses in the contract on this clause it is not possible to say anything with exactitude, nonetheless when the maximum expense incurred by the company on visa processing is 2 lakh INR it cannot justify recovery of an amount equal to thrice the amount incurred by it.
3. As regards the US contract, the clause of recovery of 15000 USD from you in the event you leave the company before 2 years will certainly be enforced in a court of law. Furthermore, the company may also recover from you the legal expenses incurred by it on the court process.
4. You should honour the contracts in order to avoid being entangled in the legal process which will be a costly affair.
first of all claim the copy of contract which you and company signed in writing, if they refused in writing then file a civil suit for declaration for this contract as null and void due to the refusal of providing the copy of the same.
Advocate, New Delhi