Can the employer impose a penalty on the employee for resigning during probation?

Hello Rajasree,

Thanks for the detailed answer.

A follow-up question to your query.

Can an employer impose a penalty on the grounds of leaving a company earlier than 12 months?

(Assuming that there's no breach of non-compete clause).

I did not understand your question.

What I was trying to say is if there is a non-compete clause or agreement which states a penalty, the burden of proof lies on the employee.

If there's no penalty clause, the burden lies on the employer.

If there isn't a non-compete agreement, the burden lies on the employer.

The breach of the non-compete clause or agreement means when you join a competitor during the given period.

Understood. And I am not joining a competitor so that's in my favor.

In my contract here's the line and I think I'll be charged a penalty based on this -

The minimum term for the contract is one year renewable. The company's penalty terms will be applicable if separated earlier than a year.

This is up to the discretion of the court. The court may ask the employer to prove the basis of the calculation of the penalty.

I see. But can the company charge the penalty only because I am leaving early?

I read somewhere that a company cannot if it's an unlimited contract.

Please contact me at my number after 6 PM to discuss further.