Legal Question in Employment Law in India

Hi

I am an indian working abroad on deputation. I have signed tricky service agreement with my employer. That is one section of agreement asks for 2 months notice incase of resignation(see below).

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1 2 ) On completion of assignment

i) You are aware that in order for you to fulfil your assignment, it will be necessary for the company to make substantial effort and incur expenses towards various actions,including retaining and paying services of attorneys to obtain the VISA , necessary resident permits for you, transportation costs, airline fare,immigration and moving/relocation costs, etc.

ii)In recognition of these costs incurred by the Company,the Company requires that you will give at least two (2) months of notice [or one month, in the case of a probationary employee] of your intent to resign from your employment. This advance notice requirement only applies in the case of a resignation.

iii)(a) On completion or termination of your assignment (for whatever reason), you shall be required

immediately to return to India.

(b)On your return to India (after completion of your assignment), the terms & condition of your

employment as applicable for your grade in India will apply.

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And another section states employees on long term assignment has to serve 6 months notice at abroad or in india basing on his manager requirement or partially. Failing to serve this 6 months notice to pay 4,50,000 Rs for the cost/expenses incurred for visa,travel etc...

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3. Further, the Employee acknowledges and agrees that post completion of Deputation, the employee commits to return to India and serve the Company for a minimum period of six months("Committed Service Period") from the date of his / her return to India after completion of the overseas deputation, for the purposes of imparting amongst other employees, the specialized knowledge, skills, training and experience gained during Deputation. However, the tenure of six months can be served at either location (overseas or India or both in part) based on the requirement of the reporting manager.

5. Liquidated Damages:

a) Subject to (c) below, in the event the Employee does not wish voluntarily to complete the Deputation and/or the Committed Service Period, he/she agrees that he/she shall (unless otherwise approved by employer) pay liquidated damages equivalent to Indian Rupees Four Hundred and Twenty Thousand (INR4,20,000) (or its equivalent in foreign exchange, based on current exchange rates). The liquidated damageshave been determined taking into account the training, orientation, replacement and other costs of the Employee. The same may be reviewed by from time and may be changed upon notice.

b) Subject to (c) below, the liquidated damages will be reduced on a monthly pro rata basis for the period of the Committed Service Period served by the employee post his/her return from the Deputation. If theEmployee wishes to separate from compnay while being overseas on Deputation, the Employee will be liable for the full amount irrespective of the duration of the notice period served while being overseas, unless a part of or the complete notice period of six months is required to be served overseas based on the requirements of the reporting manager.

i. Pro rata basis calculation: based on duration of notice served:

ii. Liquidated Damages value = (6-No of months actually served) /6*4,20,000

Eg.If an employee resigns after spending one month post his return, he or she would be liable to pay 5/6th*420000.

c) If, however, the Employee is separated by company before the expiration of the Committed Service Period or if the Employee's services are terminated before the expiration of the Committed Service Period for reasons of Misconduct or Breach of Integrity on the part of the employee, the Employee shall pay to company the entire liquidated damages as mentioned above.

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My questions

1) is this service agreement one sided !! is it valid !!

2) do i still come under indain labour law while working in russia !! where my visa/workpermit is issued after signing destination country (russia)labour law agreement that has section to serve notice period of 2 to 4 weeks.

3) Can I leave company with 2 months notice without any negative cnsequences.

4) This service agreeemnt was not signed by me before coming to abroad, but my company releases the letter and asked me to sign and send it only after arriving abroad. This means that i was not aware of penalties laid for not serving 6 months before coming to abroad.

Thank you for help...

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