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  1. #1
    Join Date
    Apr 2011
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    Default Penalty Clause in H1B Employment Agreement

    My question involves employment and labor law for the state of: Texas
    2 months back I got a offer from a company xyz. I accepted and signed the employment contract which says employment agreement starts the day I signed the employment agreement. After 2 weeks before the file the h1b transfer petition, I decided to join a different company abc and informed xyz that I'm not willing to join xyz. They(xyz) didn't respond me for week (looks like they were waiting for something from client) and after a week now they called me and saying I have to join the company otherwise I have pay the penalty as per employment agreement. Note still haven't filed the h1b transfer petition. For h1b employee before filing h1 transfer, is the employment agreement is valid?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Penalty Clause in H1B Employment Agreement

    It may well be. I cannot see the agreement from here, however, and don't have enough details to know. Run it past a lawyer.

  3. #3
    Join Date
    Apr 2011
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    2

    Default Re: Penalty Clause in H1B Employment Agreement

    Quote Quoting Mr. Knowitall
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    It may well be. I cannot see the agreement from here, however, and don't have enough details to know. Run it past a lawyer.
    The contract says if I terminate job then I have to "cost to cover primarily but not limited to relocation expense, business loans, and cash advances, and give 2 weeks notice otherwise forfeit the 10 worked days salary".

    The contract doesn't say anything what if I don't join the company. The person in the company is saying since I already signed contract legally its like I already joined the company and I'm obligated to the contract. The contract says the effective date of employment is the date I signed the contract but legally that's not possible because I can join the company only after the h1 transfer petition is filed. Also if the signed date is starting date of the employment then they have to pay me from that date, right? H1b employees should be paid even the company is not able to give any productive work but the employee is ready work. If the company is ready to pa from the day i signed the contract, then I can't accept the payment because legally I'm not allowed to and they are not allowed to pay me as well. The offer letter says my start date will be Apr-XX-2011 or as stated by client. The client didn't say anything to me about the start date. Legally h1b employee allowed to start the job only after the h1 transfer petition is filed. They didn't even file LCA on or before the date they mentioned in the offer letter, and I have email communication in which I mentioned I'll join in month May,2011 and they agreed for that, and 2 weeks before the planeed start date I informed them that I not joining. Considering these points legally I haven't joined the company yet, and the contract doesn't say anything what if I don't join. The contract says I have to reimburse if I terminate the job, The contract doesn't say anything what if I don't join the company. So I have to reimburse anything to company?

  4. #4
    Join Date
    Jan 2007
    Posts
    1,695

    Default Re: Penalty Clause in H1B Employment Agreement

    Only an attorney who has personally reviewed the contract can properly advise you. You will just have to pay one - or pay your employer what he demands just in case it is a valid contract.

  5. #5
    Join Date
    May 2011
    Posts
    1

    Default Re: Penalty Clause in H1B Employment Agreement

    Quote Quoting arunkaul
    View Post
    My question involves employment and labor law for the state of: Texas
    2 months back I got a offer from a company xyz. I accepted and signed the employment contract which says employment agreement starts the day I signed the employment agreement. After 2 weeks before the file the h1b transfer petition, I decided to join a different company abc and informed xyz that I'm not willing to join xyz. They(xyz) didn't respond me for week (looks like they were waiting for something from client) and after a week now they called me and saying I have to join the company otherwise I have pay the penalty as per employment agreement. Note still haven't filed the h1b transfer petition. For h1b employee before filing h1 transfer, is the employment agreement is valid?
    may I know what happened with you? I am in kind of same situation?
    Thanks.

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