Legal Question in Employment Law in India

I have entered into agreement with one Hospital as the Hospital was desireous to utilize my services as Consultant Radiologist on a monthly salary of Rs2.50/=Lakhs on retainership basis.The terms of agreement are as follows:-

Term and Termination:-The term of this agreement shall be for a period from 25th February2013 to 31st March 2014.unless otherwise terminated in accordance with

Clauses (a),(b) and(c):-

(a) This Agreement shall automatically terminate if either party ie Dr or Hospital breaches any of its obligation under this agreement, which breach is not cured within 30 daysafter the other party provides notice thereof to the breach in party,or,with respect to a breach that is not capable of cure within 30 days,the breaching party has not commenced remediation as promptly as practicable(and in no event less than (15) days , and does not continue to use diligent efforts to effect a cure of the breach.

(b)This agreement may be terminated by DOCTOR in consultation with Hospital by

giving 90 days advance written notice..In lieu of 90 days notice by doctor 3 months retainership fee will be paid by the doctor to the Hospital.

(c)The Agreement may be terminated with immediate effect by the Hospital without assigning any reason by giving a notice

Now I have received a job of teaching undergraduate medical students with a pay almost 3 times the pay of the present hospital.Now I want to flout the agreement clauses. What are the implications .Request pl advise so that I may leave this hospital peacefully and without arbitration


Asked on 7/11/13, 8:44 am

2 Answers from Attorneys
Setu Niket Curare Legal

To give any opinion the compete contract has to be examined. Merely the termination clauses cannot be relied on isolation to give you any opinion.

Feel free to contact with copy of contract for assistance.

Kind regards

Setu niket

Advocate

9873190672

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Answered on 7/11/13, 8:51 am
Fca Prashant Chavan Expert Edge LLP

11.07.2013

Dear Sir / Madam,

As per your query, Clause (a) refers to minimum time limits on either party for rectification of defects if any in the service delivery . Clause (b) simply says that you are required to give 90 days prior notice to the hospital, if you terminate the retainership contract, or return retainership fee for 90 days or the pro-rata duration period that you do not serve in the hospital from the date of you giving the hospital notice of termination. Clause (c) is to be read with the remediation Clause (a) above, which means the hospital has to give you minimum 15 days termination notice or retainership fee in lieu thereof.

Since you have received a teaching offer elsewhere and the salary there is three times your present emoluments, you should confirm that the offer is genuine and not hoax and only then :

you may give the termination notice to the hospital, serve the remediation period of 15 days to a month thereafter in keeping with Clause (a) and (b) above, and on the last day reimburse 75 days or 60 days retainership fee as is suits you to the hospital Management. To play safe, make sure that your new employers undertake to cover you and guarantee that they will employ you for a minimum three month period, so that you earn around 19 lakhs in the new assignment, so you do not feel the burden of repaying the balance unserved notice period amount to the hospital.

Regards,

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Answered on 7/11/13, 9:25 am


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