Service Agreement Validity & Enforceability
I have an employee service agreement signed with my current employer which has 2 clauses –
1. If I leave the organization with a period of 2 years from my joining, I will be liable to pay the company any additional cost they have incurred on me like, trainings, visa processing etc..
2. If I breach the agreement before completion of 2 Years the company will not provide me with relieving/experience documents.
I have completed 1 year with this organization and recently received a better job offer which I would like to pursue. Now the company is refusing to provide me with my relieving documents based on the signed agreement. I would like to highlight that –
1. I have not been provided with any Trainings etc.. so no additional cost has been incurred on me.
2. I am on bench for last 4 months with no projects and no career growth. Hence, I am justified in looking for a better job offering me growth and work.
3. When the present company made me the offer there was no mention of a 2 year service agreement. However, on my date of joining they made me sign the 2 year service agreement under the pretext that it will only be applicable if additional expenses are incurred by company. In a way, they made me sing a 2 year bond which is not legal as per Indian Labour laws.
4. My notice period is of 3 months and I am also ready to serve out the entire notice period and follow all exit protocol.
5. I am also not joining any company which is a competitor of my existing employee.
Please let me know if I take legal action against the company to provide my relieving and experience documents, which are important for my future jobs, would the same be justified.