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Employment Bond
8 months ago
I have signed a agreement on letter head of company (Not on stamp paper) of three years service however I want to break this agreement to pursue higher education.
Company has not given me any training in these period of 2 years So is these agreement is valid? can they take action against me? Coz I have already enrolled myself for higher education at abroad so breaking this cause any problem in my studies or VISA?
A.Dear Client,
As per Indian law, an agreement can be considered valid and enforceable even if it is not executed on a stamp paper. However, the legality and enforceability of the agreement will depend on various factors and specific circumstances.
In your case, if the company has not provided the promised training or any other consideration mentioned in the agreement, this could potentially weaken their position to take legal action against you for breaching the agreement. This is because both parties should fulfill their obligations mentioned in the agreement for it to be considered valid.
However, it's important to thoroughly review the terms and conditions mentioned in the agreement to understand the consequences of breaking it. If there are any clauses regarding penalties or liquidated damages for breaking the agreement, the company may attempt to enforce them.
Regarding your studies and visa, breaking the agreement may not directly impact your studies or visa. However, it's advisable to consult with an immigration lawyer to understand the specific requirements and implications for your situation.
Thank you.
As per Indian law, an agreement can be considered valid and enforceable even if it is not executed on a stamp paper. However, the legality and enforceability of the agreement will depend on various factors and specific circumstances.
In your case, if the company has not provided the promised training or any other consideration mentioned in the agreement, this could potentially weaken their position to take legal action against you for breaching the agreement. This is because both parties should fulfill their obligations mentioned in the agreement for it to be considered valid.
However, it's important to thoroughly review the terms and conditions mentioned in the agreement to understand the consequences of breaking it. If there are any clauses regarding penalties or liquidated damages for breaking the agreement, the company may attempt to enforce them.
Regarding your studies and visa, breaking the agreement may not directly impact your studies or visa. However, it's advisable to consult with an immigration lawyer to understand the specific requirements and implications for your situation.
Thank you.
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A.Dear Client,
The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that 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. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. The following are the requirements of a valid employment bond agreement. 1) The agreement must be signed by the parties with free consent. 2) The conditions stipulated must be reasonable and 3) The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer. 4) The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable. But in your case, you are leaving the company for higher studies and not joining the competitor, So. the Company can not take any legal action in view of the above provision of law in r/o. employment bond. If required, you may get in touch with a Corporate Lawyer experienced in the subject for guidance and steps.
The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that 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. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. The following are the requirements of a valid employment bond agreement. 1) The agreement must be signed by the parties with free consent. 2) The conditions stipulated must be reasonable and 3) The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer. 4) The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable. But in your case, you are leaving the company for higher studies and not joining the competitor, So. the Company can not take any legal action in view of the above provision of law in r/o. employment bond. If required, you may get in touch with a Corporate Lawyer experienced in the subject for guidance and steps.
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