Question on H1B

[Ram Harish]

I'm on H1B, and an Indian company holds my H1B. Came to USA recently. Before coming here, my company has asked me to sign on offer latter which states, I cannot resign in USA and in case of resignation in USA, I need to pay $25000 as liquidated damages. The only way I can avoid paying those charges is to go back to my home country and resign. SO if I resign now in US(as I am not liking the work in current project), should I have to pay all those 25000$ or is there a way to avoid paying such a huge amount.

My company hasn't mentioned any time period for which I shouldn't resign. It just says I have to come back to home country when ever I want to resign. How can a company with out stating any time period ask the employee to pay for liquidated damages.

In the offer letter, it is mentioned that in case of conflict, it has to be resolved in Virginia court.

Does anyone know the rule in Virginia?

or

Can someone help me with this situation?

Thanks.

[JoeF]

By claiiming something to be "liquidated damages", it not necessarily is.

In particular, the longer somebody works for the company, the less the damages are, because the company profits from the employee's work. So, liquidated damages can't really be a fixed amount.

You should have that contract checked with a labor lawyer.

And next time, avoid companies that want you to sign such a contract.

[wiweq]

That contract was signed in India, thus this is not bounded by the law of USA. You shouldn't get any problem neither in USA nor in India. If you go back to India, they can sue you if you would have broken this contract in India. It’s my understanding, not sure though.

You would have taken care of this thing before signing this contract !

[Ram Harish]

By claiiming something to be "liquidated damages", it not necessarily is.

In particular, the longer somebody works for the company, the less the damages are, because the company profits from the employee's work. So, liquidated damages can't really be a fixed amount.

You should have that contract checked with a labor lawyer.

And next time, avoid companies that want you to sign such a contract.

So does it mean that I should be bounded to the contract sir?

[Ram Harish]

That contract was signed in India, thus this is not bounded by the law of USA. You shouldn't get any problem neither in USA nor in India. If you go back to India, they can sue you if you would have broken this contract in India. It’s my understanding, not sure though.

You would have taken care of this thing before signing this contract !

I consulted one lawyer online, he told me that I should be bound to the contract... You have any exact idea on this Sir?

[Ram Harish]

Yea the contract was signed in India, and now I'm in US, want to transfer my H1 to another company.

[SathyaStaal]

Hi Ram Harish,

One of my friend did the same thing recently and it was 10K USD.

But his previous employer didnt do anything.

And moreover - remember we just sign papers which is not stamped/registered - 99% you cant be touched either in india or in the US. One of my aunt is a leading lawyer in India and she told me this few months back.

But I would recommend you to consult an immigration layer -

Do update us on what you did - for us to know ! All the best !!!

[wiweq]

" we just sign papers which is not stamped/registered"

=> I don't know about India, but in USA a paper signed by both parties IS a contract. Of course, illegal activities cannot be counted as a contract.