What can I do if someone Illegally demand to pay money as Employment bond?
My company ask me to pay 2 lakh rupees as penalty for 2 years employment bond break ( already worked 1.8 years ). In my offer letter, it is clearly mentioned that after 1 year, penalty is calculated as proportionate amount for remaining employment bond period which is almost 4 months. They were forced me to pay 2 lakh rupees otherwise they will not provide my relieving letter and experience letter. Actual proportionate amount is 33k approx.
Since your offer letter explicitly states a proportionate calculation after 1 year, the company's demand for the full 2 lakh penalty is illegal and amounts to coercion under Section 15 of the Indian Contract Act. You can file a complaint with the Labor Commissioner or send a legal notice to the company citing the offer letter terms, and demand release of documents with the correct proportionate penalty (33k), as withholding experience/relieving letters against inflated penalties is considered an unfair labor practice under Industrial Disputes Act.
Sir, you can file a complaint to the labour commissioner or appropriate labour authority in your area and you should hire an expert lawyer to understand your rights and perform further procedures. For further legal assistance contact us on our helpline number.
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