I have been working for a dhoti company for last 8 months. I have signed a contract with them which will expire only after 7 more months. In the contract it says that I have to pay them a monetary fine if I want to leave them before the contract end date.

My question are, are these kind of contracts legally valid? Do I need a release letter from my current employer for my H1B transfer?

Any suggestions will be appreciated.

Thanks

I dont think such contract is valid in USA. Anybody can leave anytime. And employer can fire anyt time they want.

I am not sure about the validity of contract but no, you don't need any document from your current employer for H1B transfer. Try to get reference letter for future need. You need this. As far as I know once the contract is expired what is there to do with release letter! I'm sure you don't need that. By the way keep it to yourself till you get H1b transfered. Best of luck. By the way what you are working as let me know.

Thanks, Euta nepali and ktmdude.

But, for example, if you have a rental contract of a house then you will be confined by the contract to pay for the remaining months, similarly if a company has a contract with you and a declared fine for violating the contract, then I wonder how you will be able to get pass it.

I am into DW and I am in no rush to quit yet, but I am also tempted by the other companies perks. That is why I started this thread. Please support.

There is already a thread on same issue...
http://www.sajha.com/sajha/html/OpenThread.cfm?forum=2&ThreadID=49653

Thanks for the link to previous thread Aug25,1997.....from that thread I can conclude that the contract is valid.....but can ASSUME that the dhoti company will chicken out....right?