Contract of Employment?

Question

Need advice but cannot afford a lawyer.

This company's contract of employment goes this way. You join them, u sign a contract and u r bonded to them for 2 years. Why? Because they promised to give u training in the first 10 months.

If u leave within the 10 months, u have to pay back ALL the salary they have paid u so far and some other amount of $$. after then 10 months, but not exceeding 2 years, for every month u don't serve them, u r required to pay them $4000 while your monthly salary is only less than $3000. If they fire u within 2 years, u have to pay too.

In the contract, the employee is specified as an employee, with contribution made by company to the employee social security fund and pension fund. The payment made monthly to the employee is specified SALARY.

It is also specified that the amount owed if one leaves b4 2 years is "expense expended on" the employee.

Is such a contract legal?

after 1 month, the employee felt the contract is unfavorable, can he back out? Is there any law that law on employment that forbid such kind of terms and conditions?
If there is written law that forbid such practice, would it still applies AFTER the employee signed the contract?

Regarding the first answerer's answer... Can they claim working for them is a sort of training?
The program is supposed to start with 2 months of classroom intense training, followed by placements in different departments to gain exposure. However, they started by placing the employee in the department without training, doing work like any other employee. Can that still be considered training?

Yes, I have signed the contract. Stupid me. But I was desperate and is pushed by other dealines, and made a hasty decision. However, after giving it much thought, I find the contract unreasonable and hence decided to quit. Now they are claiming an amount slightly larger than my total salary from me.

And because I have to give 2 week notice of resignation, i have to work 2 more week, and at the same time (they claim in the contract) "incurring slightly more than 2 week worth of salary's cost" and hence i my net salary is actually negative for this 6 weeks.

Answer 1

The contract is allowed because of the training given to the employee. Thus, it can bind the employee for a number of years which is the cost of the training. If you really wanted to question the contract, you can file a complaint with the Department of Labor. Further, if you realy do not want the contract, do not sign it and look for other companies that will suit your plans.

Answer 2

In the USA

It depends on the state in which the company is incorporated. Many states are employment at will states and such contracts are not binding.

If you have not already signed the contract don't do so without crossing out the verbiage you find unreasonable. Be sure to initial any line-outs you have made. Many companies are willing to compromise on their contracts.

Companies have to pay you for hours that you work, you never have to give that money back.

If you have already signed the contract and want to leave this company consider that in the US the only way they can hope to collect the funds from you is to take you to court, sue you and win, then they only have a judgment against you. You can pay them back at $1.00 per month. Most companies do not bother even trying to collect on these types of unfair practices it is too expensive to try.