I want to leave my company before the specified contract period
I desire to resign from my present company. I had signed a contract for 2 years, but I'll be leaving the company before that ( 1 year to be specific). Can the company take any legal action against me.
This is the exact format written in my contract.
This is exactly the thing written in my contract: 14 (d)You would be liable to pay a minimum pre-estimated & pre- determined damage to the tune of gross-salary for the unexpired contract period of two years, whichever is higher e.g. if a person quits on 31st October of any given year after completion of two years, he/she will be required to pay 7 x Y rupees as damages (the value of Y will be gross monthly salary). Such liability would be automatically incurred once the breach is committed by the employee & no notice in this regard would be served upon you to claim the said pre- determined & pre-estimated damages. You would be severally liable to pay the same within (seven) days of your leaving. If the company does not receive the payments within 7 days of leaving towards the damages as stated above, the company shall have the right to recover the same along with interest @ Z p.a. through legal process (Z=PLR + 3%; where PLR is Prime Lending Rate of the company Bankers. The above damages are not punitive but only a part compensation for the huge loss of face, reputation, brand equity, mind equity, future business losses due to your quitting without completing the year . The damages are payable at the sole discretion of Centre Director of the Company. You will submit one undated cheque in favour of the company. You hereby authorize the company for the filling up of the date and thereafter to encash the said cheque. In case of non- compliance of the contract terms contained in this manual, the cheque becomes payable immediately. That the said cheque shall not be treated as a security cheque(s) for legal or any other purposes as it is issued by you in order to discharge of your liability which may occur on account of damages as mentioned under clause 14(d) of the agreement.