2 Answers
Dear client, as per your query, the concept of forcing you to pay 1.6 lakhs, which is your salary for one year, as a penalty for leaving during your probation period is not legally valid in India. According to the Indian Contract Act, under Section 74, the company cannot claim more than reasonable compensation for the loss. Since you are not being provided any special training, you are willing to pay the one-month notice period buyout fee, which is mentioned in your contract, but you cannot be stopped from leaving against your will, as this would be against your basic human rights. To protect yourself from such a situation, you should send an email stating your willingness to pay the one-month fee mentioned in the contract and request the company to provide a breakdown of how they arrived at the figure of 1.6 lakh. I hope this answer is helpful. In case of further queries, please do not hesitate to contact us.
Thank You.
Dear client
First, try not to panic. An employer cannot obligate you to pay an entire year’s salary unless there’s a very clear and valid bond agreement with your signature—and even then the amount must be reasonable.
If your appointment letter specifies that you are only required to give one month’s notice or pay one month’s salary in lieu of notice during the first three months of your probation period, this clause should apply in most cases. Since you have offered one month’s pay for notice, you have acted in good faith. To demand ₹1.6 lakh (or one year’s salary) without any supporting evidence indicating that you’ve received specialized training or signed a specific bond is generally going to be considered unreasonable and not upheld in court.
Under the Indian Contract Act of 1872 (ICA 1872), any penalty can only be imposed if it is connected to an actual loss. Since no money has been spent on your training or no verifiable loss has occurred; the former employer cannot just demand a large sum of money.
Threatening you is also inappropriate behaviour. Keep copies of all communications (such as emails or WhatsApp message screenshots) in writing. Do not react to them emotionally.
If a legal notice is served, you should send a reply through a lawyer indicating your willingness to pay one month’s notice pay per the terms of your contract. Generally, companies do not pursue such exaggerated claims through the courts.