If it is not on a stamp paper and not registered then they cannot claim the amount as they haven't paid the requisite stamp duty. Moreover they cannot arbitrarily charge any amount. Send them a legal notice and leave the company citing labour law violations and exploitation and work not related to job profile.
Employment bond
Dear sir/madam I signed the employment bond on 10 july 2020 and my joining was on 15 july 2020 and the bond period is of 2 years. I am in my probation period(6months), I was told that I will be provided the training, but all they do in the name of training is gives us the links of youtube videos and some lengthy documents. Moreover, I was told to work for 9-10 hours but even in my probation period I had to work for 11 hours sometimes, and as I have observed as soon I go to job location(as I am working remotely) I will have to work for 13-14 hours and I am not comfortable with working environment and staff. And, bond amount is 10lakhs if I leave before 2 years( not on stamped paper). So, my questions is, Will they be able to enforce this bond or Will I have to pay 10 lakhs if I leave the company now?
Asked 5 years ago in Labour
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16 Answers
It depends on what terms you have signed the bond. If the terms are binding you need to pay. It depends on the loss to the said company after investing money on you
Remedy: The Employee hereby acknowledge that unauthorized disclosure or use of Confidential Information or a breach of this Agreement is a fraud perpetrated on the xxxx Corp, which could cause significant and irreparable financial harm. Accordingly, the Employee agree that the xxxx corp. shall have the right to seek and obtain injunctive relief from breaches of this Agreement in addition to any money damages in excess of Rs.10 lakh per each instance of breach of agreement, other rights and remedies it may have from a court of competent jurisdiction. This is what has written in bond. Please note, I have spent just 1 month in company and dont have any access to confidential info.
Asked 5 years ago
How can a vreach of an agreement which can only involve a civil action, be a fraud?? Fraud is a criminal offence.
They have made an agreement which is very strict and harsh so as to deter employees from leaving.
You may leave after serving the notice period.
You may also share content of appointment letter mentioning terms of employment and working hours.
If employer is violating the terms of appointment of employment then employee has right to respond gently and object it legally allowed in laws of labour Act State and Central Government.
Please Email management through HOD and inform them your grievances against injustice being caused to you by your employer.
If persistent symptoms appear, Please serve them notice and leave the organization. Let them file the claim of breach of bond and your claim would be breach of terms of employment.
In this terms only if you breach the above 2 conditions will lead to damages otherwise not. In this case your leaving will not attract this terms and company can't seek damages from you.
You take job in any organisation they will make you work hard for long hours
2) if you leave employment company will seek to recover bond amount form you
3) you can take the defence that no training was provided to you and bond is unenforceable
Company would sue you to recover bond amount
you can contest the legal proceedings
Does this bond has provided training to accordingly employment agreement as per the state laws. On Medical ground you can leave the company. And Training should be proper towards the product of the company.
Hello,
- The bond is all about breach of the employment agreement by way of unauthorized disclosure of confidential information and the penalty in addition to the legal recourse available to the company.The onus is on the company to prove the allegations of breach.
- One has to read through the entire offer/appointment letter to form a more precise opinion. However, as an employee you too have protection under law for your rights. Therefore, if you choose to quit, serve the notice of your resignation from the company. Such bonds are unviable as they are one*sided and you were compelled to sign as a needy employee.
In your case you are stuck in this company if you are not getting proper training and other amenities which is itself your working in any organisation comfortably however the bond of rupees 10 lacs is valid and can be enforced by the emperor in case you leave the organisation before 2 years for the compensation this will create legal problem for you however it will be good for you to speak to the management that you are not believing true if possible you can mention the health reason as well for discontinuing the job
- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.
- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.
- Except, recovery of the said amount, company cannot harm you for the same
- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.
- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.
- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.
- Further, Probationary periods are often applied to new employees as a means of determining their capabilities in a new job.
- Hence, the employer can terminate during the probation , and employee can also leave the job with the terms and conditions mentioned in the appointment letter for probation.
- Hence, during the probation period , you can leave the said job , and the said bond not applied in your case.
Dear Sir,
You are suggested not to leave the job abruptly and wait for the right time for it. Also, let the company ask you to leave because once you leave your own, they will create pressure and will ask the money from you,
There are no direct laws dealing with probation on a general basis in India, which is, however, a common practice.
The (federal) Industrial Employment (Standing Orders) Act 1946 (which is applicable to workmen), provides for a probationary period of up to three months.
Certain states have built in the probation concept indirectly into their local laws, which ranges from three to six months.
Ideally, a probation period should not exceed 240 days, as several statutory social welfare laws apply to employees who have worked for such period.
The Industrial Disputes Act 1947 (applicable to workmen), prescribes that if certain terms of service change, notice must be given to the employee.
It also prescribes requirements for termination for convenience, including notice and compensation.
You don't have to have probation periods, however, they are recommended. If an employee's in their probation period and chooses to leave before it's over, if you don't have a set term in your contracts of employment, they must give the statutory minimum notice period – which is one week.
Section 27 of the Indian Contract Act, 1872, states that any agreement made in restraint of trade and profession is considered void. .
For an employee bond to be valid, the employer should be able to prove that the said bond is necessitated to prevent diversion of business, and because he has invested a certain amount in training an employee.
Basically, under section 27, an employer is not permitted to put a restriction, directly or indirectly forcing the employee to work for the employer or restricts the employee to work for a competitor.
As per the Bonded Labour System (abolition) Act, 1976, bonded labour is outlawed.
An employee can leave or resign a company even after signing an employment bond to serve for a particular time.
Any restriction imposed on an employee that compels them to work for a time period or restricts them from joining a competitor is void under the Indian Law.
It is important to note, the government has kept in mind the pressuring tone of an Employee Bond and has given the employee to walk out of a company even if he or she has signed a bond that states a fixed period of time to work.
An employer can avail of a compensatory amount only in case of dispute or breach of contract by an employee.
A suit would be filed at a court in case the employee doesn’t pay the amount stipulated in the contract.
The court will then deem if the terms and conditions of the contract are appropriate and reasonable.
If they are, then the amount refunded shall be equivalent to reasonable expenses incurred by the employer on training and skill development of the employee.
If you have signed an agreement / bond with your employer, then there will be a clause which will state the validity of the agreement / bond and the liquidity damage you need to pay if you do not serve. Also, if none of the above questions implies on you, then I suggest that you can go and talk to the HR and negotiate the ROI or discuss on a common platform and try to come to a common conclusion.
Yes they can enforce the bond and file suit to claim bond amount against you if you leave the job without completion of bond period.
