Hi,
Request you to please guide me on the following clauses of employment contract and their implications in India and US.
I came to US on H1B which was sponsored by my Employer to work at Client site. Before travel, i was asked to sign two undertaking named as:
1. H1B Undertaking - This states that i have to serve the Company for at least 22 months from the date of signing the undertaking. Non fulfillment of the undertaking requires a payment of Rs. 1,20,000 (INR) as pre-estimated liquidity damages that company has incurred substantial expenses in applying H1B for its employee based in India.
I don't worry about this undertaking as i have already served more than 22 months.
2. Foreign Travel Undertaking - This service undertaking was signed just before travel and has following clauses:
Employees are not permitted to accept any other employment, assignment or engage themselves in any other business activity while they are on overseas deputation and till the time they return to India.
On completion of their overseas assignment, employees are required to report for duty to their base location in India.
From the date of reporting for duty at the base location in India, employees are mandatory required to serve the company for a minimum period of 3 months to ensure transfer of knowledge to the offshore team members.
Employees are not permitted to take up employment with the client for a minimum period of 3 years after the completion of the assignment.
Breach of any of the terms of the service undertaking would entail payment of pre-estimated liquidated damages of Rs.5 Lakhs to the Company.
Apart from the above damages, breach of the undertaking would entail an additional payment of pre-estimated liquidated damages of Rs.2 Lakhs to the Company against any claim that may be raised on the Company by the client.
My employer is engineering service company headquartered in India. My employer placed me here in US at client site just like any other staffing company. Even the purchase order was issued mentioning my name on it. I am working on various projects as full time - contracted employee. As of today (in 2 yrs), Employer has been able to place 2 more resources with client.
I have few questions related to the second undertaking:
1. As there is no offshore team of my project, do i really need to ensure transfer of knowledge to the offshore team members working on other projects with different clients.
2. Do i really need to report to my base location in India if i quit here in US. (My Purchase Order gets renewed after every six months).
3. Can my employer file a case against me on Breach of Contract ask for liquidity damaged of 12000 USD.
I look forward to hear from you. Please let me know for any queries.
Thanks.