Breach of Agreement with consultancies


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Hi all,

I would like your opinion or legal advice based on your experience for my current situation. It is most common issue that many of the H1B employee faces.

I signed an agreement with employer A(consultancy - who holds my Visa) for contract job opportunities. I was immature at the time of signing the contract and didn't know the hidden messages or tricks mentioned in the contract.

As per the contract, I've to work with employer A for 12 months. I've already completed 9 months and serving 10th month currently. But, recently I got a very good offer for full-time from company B and it is good for my career. I'm in a situation whether to accept or reject this offer. Since, the 'breach of agreement' mentioned in Company A terms annoys me to do so. I've following questions which I wanted to get legal advice or previous experiences on these,

  1. If I accept Company B offer, whether company A can consider this as breach of agreement and file a case?. These are the following terms from Company A
    Transfer Service: During the employment period, employee agrees not to accept any employment opportunity. Doing so leads to breach of agreement and shall recover from the employee as liquidated damages and not as penalty, an amount in excess of $50,000 USD or an amount decided by the court.
    ($50000 USD is considerably huge and I cannot pay as liquidated damage)
  2. Does these agreements are legally abide by the law?
  3. Will it affects me to sign any offers, even after 12 months?
  4. Should I really wait till the completion of 12 months? Or I proceed accepting the offer since Company A cannot legally sue me.

Please advise me on how to handle these situation? I could even refer with attorney based in your advices.


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You can't get legal advise on a forum. You would have to consult with a lawyer in private for that.

While asking for liquidated damages is allowed in breach of contract situations, the amount can't be fixed. And it gets lower the longer you have worked there, because the employer recouped part of the investment in you.

You should discuss your specific situation with a good immigration lawyer.

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