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[H-1B][Employment Contract] Buy-out provision

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  • [H-1B][Employment Contract] Buy-out provision

    Hi All,

    I have a couple of questions about my employment agreement.

    I'm on H-1B. Working with my original sponsor for last 5 months (first client). Signed offer letter, employment agreement and employee handbook(this one was signed in US). Looking to transfer the visa now, but the following clause from agreement is stopping me:

    Buy-out provision: Employee recognizes that the Company will have incurred cost and expense, both tangible and intangible, including but not limited to recruiting, training, relocation, education, visas, legal, accommodation, transportation, commission and insurances. Therefore, to cover these costs, should the Employee terminate this agreement prior to 18 months after the commencement of employment, Employee shall reimburse the Company, the sum of $1,000.00 per month for every month remaining in the 18 month term, plus any outstanding loans or advances the Company might have extended to the Employee.

    If I quit and don't pay them this money, can they challenge me in court of law and get it enforced???

    Is this an illegal clause?

    The employer gave me back my security deposit, reimbursed my air-fair, did not pay me for first 3 weeks on bench, did not give me a joining letter and I have all pay stubs with me.

    The employee handbook says that its an employment At-Will.

    Any advise, pointers or reference will be appreciated.

    Thanks in anticipation.

  • #2
    Employment is at will in any organization. That means you can call it quits anytime. If that has a violation of the contract, it is still valid.

    Your contract seems to be a fixed cost contract which I think has less legal ground than one that asks about liquidated damages.

    Yes, the employer can go to court. If it is valid or not, has to be seen. Talk to an employment/labor law attorney.

    Many small companies have such contracts written to prevent attrition and if one dares to eave, they make some calls and threats and let it go.

    I am not a lawyer and you need to consult with one to validate any info posted on the forum and discuss your case specifics. H1b Question? Read the FAQ first.

    Comment


    • #3
      where can i find a *employment/labor law attorney* ? any website? forums? any pointer?

      Comment


      • #4
        Call your local Bar association or look up yellow pages.

        I am not a lawyer and you need to consult with one to validate any info posted on the forum and discuss your case specifics. H1b Question? Read the FAQ first.

        Comment


        • #5
          aila.org website has a referral database for immigration attorneys. Most of them probably have a lot of experience with your employment issue as well.

          Comment

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