Did the company spend any money on your training
Send reply denying your liability to make payment of Rs 60 k
in the event company sues you engage lawyer and contest the suit
I was working at a company in Delhi last year and I resigned after 2 months as I didn’t like the atmosphere and the job just didn’t suit my career aspirations. I had signed a bond of 1 year. I resigned the job in a proper manner by handing the resignation letter to the Assistant Regional Manager of the Regional Office. Now they have sent me a letter asking to pay the dues with is Rs 60,000 or else they would sue me in the court of law. Now I don’t have that much money and I don’t belong to a well-to-do family. What can i do here? Please help!
Also they have my 10th certificate submitted with them. Will the company be able to sue me successfully and recover the amount? Because i really don’t have that much money just to recover my 10the certificate. And I don’t need any experience letter from the company. I’m in a fix. Please helpp!
Also they have given me a time of 7 days to pay the dues. Otherwise they’ll sue me. What should I do if they Send me another letter after 7 days?? Will they send the police to my house? What are my options here? Please help. I’m really stressed right now.
Did the company spend any money on your training
Send reply denying your liability to make payment of Rs 60 k
in the event company sues you engage lawyer and contest the suit
Ask company to return your X std certificate
if company refuses file police complaint under section 406 of IPC for criminal breach of trust
company cannot retain your original documents
- 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.
- Hence, better serve the notice period only , and tender your resignation with the request of issue experience certificate and to return the certificates submitted by you , and dont take tension of the bond amount .
You can contact me for further details.
An employment bond is reasonable because it protects the interest of the employer. It enables the employer to claim compensation for time and resources spent on training an employee. If a bond is considered a valid contract, the company can go to court. The main reason for an employer to include an employee bond is to prevent the employee from leaving the organisation, or retention.
Bonds are applicable only if the company has spent money on the personal grooming and enhancement of the employees, but not just a training that helps employees perform better. Also to prove that the bond is legal, it should not be one sided or just favour the employer. In case an employer has incurred monetary expenses for training the employee for the particular employment, he can claim for damages in respect of the monetary loss that he has incurred.
The employment bond will not be enforceable if it is either one sided, unconscionable or unreasonable. Therefore, it is pertinent to be cautious while drafting the employment bond because it is mandatory that the conditions mentioned in the employment bond, including the compulsory employment period and amount of penalty are reasonable in order for it to be valid under the Indian law.
In your case send reply notice . Deny their claim ,if the company sue agisnt you then approach a local lawyer and conduct the case.
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 of the Indian Contract Act, 1872, 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
You have to abide by the conditions of the employment offer letter.
Since you have signed the bond you are liable towards the conditions of the employment bond.
Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation.
Indian law mandates the employment bonds to be “reasonable” in order to be valid. The term reasonable remains undefined anywhere in the Indian law and therefore the courts have given meaning to “reasonable” depending upon the facts and circumstances of the cases. The proposition which has emerged till now is that conditions stipulated in the contract should be necessary to protect the interest of the employer and compensate the loss caused by breach of contract. Additionally, the penalty or compulsory employment period stipulated should not exorbitant.
Thus you can issue a reply notice denying the allegations and wait for them to initiate legal action through court of law which you can challenge based on merits on your side.
The validity of Employment bonds can be challenged on the basis of Section27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.
As per the mandate of Section 27, any terms and conditions of an agreement which directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid under the Indian law, The employee has right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time
Thus, you issue a legal notice to them to return your 10th Certificate which is held by them illegally failing which you can inform them that you will drag them to court competent to retrieve your certificate.
This is a civil matter hence no complaint with the police is maintainable.
If they have given 7 days time, let them take any action after that 7 days.
You can wait for them to take any action for recovery through court of law.
In the meantime you can issue a reply notice to them denying their allegations and demand your 10th certificate.
Most likely they may not proceed to court of law to recover this small amount because they may have to spend an equal amount towards litigation for recovery.
I did sign the bond with my own consent without any coercion. The bond stated that I pay salary of 2 months if I leave before one year. But when i reached the regional office with my resignation letter the HR said that i pay salary of 3 months. And now they are demanding Rs 60,000 even though my salary was only 16,000.
- This is called notice period , hence if you will not work for the notice period then will have to pay the same , as mentioned in offer letter .
So what can be done here, Sir? I have nowhere near 60,000 or even 32,000 for that matter. I’m really afraid right now. I’ve never been in such a terrible situation.
You don't worry if the company is demanding anything in excess, you can fight against them properly in the court of law especially if there's no such condition in the employment offer letter.
If the employment bond states that you are required to pay only two months salary, then the company's case against you, if any would not be maintainable in case they make a demand for more than what is mentioned in the employment offer letter.
You should have thought over the consequences at the time of leaving the job.
What is the use of repenting now after doing the mistake.
Anyway you may adopt the steps as suggested in the previous posts to protect your interests.
Don't be panic and afraid. The old employer can approach civil court / labour court for getting damages as per bond by way of filing petition. So when the company filed any case against you, contest the same with the help of an advocate.Your liability is limited up to pay 2 months salary