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In an offer letter offered to me by an organization it states that:
If the trainee leaves the service of the corporation before expiry of the bond period, he shall pay damages to the corporation proportionate to the period of service yet to be rendered out of the total bond period(4 Years) in terms of Remuneration OR rupee 4,00,000 ,whichever is higher.
Say I leave after 2 years. Does that mean I have to pay salary of remaining 2 years to the corporation? if it exceeds 4,00,000
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Say I leave after 2 years. Does that mean I have to pay salary of remaining 2 years to the corporation? if it exceeds 4,00,000
Yes, that's what it means. At the outset, I'll point out that four years is too long for a traineeship (apropos of the clause's reference to you as "trainee"). Thus, in digressing from your precise inquiry, I strongly discourage you from consenting to that clause.
Since (1) you speak in terms of salary; (2) you use the SE tag employment; and (3) the so-called "bond period" is four years, the "corporation" evidently is abusing the notion of traineeship to tie your hands for that multi-year period (and, of course, with the low salary that is typical of a traineeship). Akin to my answer and comments in this recent inquiry, it seems that the "corporation" seeks to secure its supply of [underpaid] workforce.
Edited on 8/6/2018 to remove last paragraph (misreading of term "service of the corporation"). Per richardb's observation.
