Regarding Agreement signed between Employee and the Employer
I am from a computer science background and had joined an IT company five months back straight out of college, with the intention that it would help me in my professional growth. But now after working there for 5 months I have realized that this company is not suitable for me. Now while joining I have signed an agreement (not on some stamp paper, just regular A4 sheets) which stated that if I leave the company before 2 years then I have to pay Rs 50,000 to the company. These are the exact conditions as stated in that agreement:
1. The Company may terminate Employee services by giving one months’ notice during the first year of employment, at any point of time, without assigning any reason. Instead of notice, the Company may give one month’s pay in lieu thereof. Similarly, employee can also resign by giving one month’s notice during the first year. After completion of one year, the Company may terminate Employee service by giving three months’ notice at any point of time without assigning any reason. Instead of notice, the Company may give three months’ pay in lieu thereof. Similarly, employee can resign from the services of the Company by giving three months’ notice after completion of one year.
2. If Employee resigns company within two years from the date of joining then needs to pay back Rs.50,000/- in lieu of initial training cost incurred by the company.”
3. Employee shall not absent from the duty without taking prior approval from the competent person.
4. Upon termination/resignation of Employee from employment with the Company for any reason, Employee shall promptly return to the Company all the properties provided by the company to Employee for performance of duties which includes laptop, computer or any other device etc, keys, credit cards, passes, confidential documents or material, all writings, files, records, correspondence, notebooks, notes and other documents and things (including any copies thereof) containing Confidential Information or relating to the business of the company or its subsidiaries or associates or client . The company reserves the right not to relieve Employee in the event that all the Company’s documents/property/Confidential Information in Employee custody have not been properly handed over by Employee to an authorized representative of the Company.
Now I would like to know if I leave the company without paying the Rs 50,000 then, can the company take any legal action against me, as the agreement that I signed was not on any stamp paper?