Employment contract
5 months ago
i was under Employment contract for 2 years, in which there was a point stating if i quite in-between, I'm liable to pay 2 months notice period & 2 months gross. when I came out of bond company promoted me and in promotion letter again there was a point stating 2 months notice period & 2 months gross if i break the bound with in a year. My question is just by promoting me can i bought under the bond, when company has not spent anything on my training. and how to get experience letter/ service letter just by serving notice period. what is my company demands to pay the amount without providing experience letter. how to get out of this ?
A.Dear Client,
To address your case, we need to understand the implications of the original employment contract and the promotion letter. After going through the said contract and the letter, we can help you determine whether the company's demands for payment are legally justified and guide you on how to proceed. In general, even if you are liable to pay the bond amount, you are still entitled to an experience letter/service letter. This is a document that summarizes your employment history and performance at the company. To get an experience letter/service letter, you should send a written request to your HR department. If they refuse to provide you with a letter, you can file a complaint with the labor commissioner. You can also file a civil suit in court.
To address your case, we need to understand the implications of the original employment contract and the promotion letter. After going through the said contract and the letter, we can help you determine whether the company's demands for payment are legally justified and guide you on how to proceed. In general, even if you are liable to pay the bond amount, you are still entitled to an experience letter/service letter. This is a document that summarizes your employment history and performance at the company. To get an experience letter/service letter, you should send a written request to your HR department. If they refuse to provide you with a letter, you can file a complaint with the labor commissioner. You can also file a civil suit in court.
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A.Dear Client,
An employment bond is a contract and is subject to the provisions of the Indian Contract Act 1872. Article 19(1)(g) of the Constitution of India guarantees that all citizens have the right to freely practice their profession and trade, subject to reasonable restrictions. 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. As per the mandate of Section 27, any terms and conditions of an agreement/bond 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. Hence, even if you want to leave before the stipulated bond period, you are not legally required to pay any amount to your employer being the bond itself is not enforceable under the law. Further, Section 73 of the Contract Act makes provision for unliquidated damages (not stipulated in a contract) and Section 74 of the Contract Act deals with liquidated damages (stipulated in a contract), and no compensation is attracted for mere breach of contract u/s.73 and 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party. In the context, the case of Superintendence Company v/s Krishna Murugai( 1980 Air 1717) of Delhi High Court and the case of Percept D' Mark v/s Zaheer Khan ( Appeal (Civil) 5573-5574 Of 2004) may be referred to. Normally an employment bond is executed at the time of joining employment that involves certain expenses incurred for training, and grooming of an employee, but the same terms of a bond cannot be reinforced at the time of promotion of an employee that he deserves by virtue of his skill, performance and dedicated service for the growth of the Company. When you tendered your resignation and now serving the notice period in terms of your employment, and on expiry of the notice period, if the company demands any compensation in terms of employment bond, then if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, Apart, you can file an application u/s.33C(2) of I D Act before the concerned Labour Court claiming your F & F Dues dues receivable on your resignation from the employer/company. But, if you are holding the position of manager or supervisor in the Company, you have to file a civil suit against the Company before the Civil Court taking the recourse of the relevant law as explained hereinabove for desired relief in the matter and in addition, you can file a criminal suit against the Company for criminal intimidation under Sec.503 of IPC. Consult with a Corporate Lawyer experienced in the subject of service matters for guidance and steps.
An employment bond is a contract and is subject to the provisions of the Indian Contract Act 1872. Article 19(1)(g) of the Constitution of India guarantees that all citizens have the right to freely practice their profession and trade, subject to reasonable restrictions. 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. As per the mandate of Section 27, any terms and conditions of an agreement/bond 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. Hence, even if you want to leave before the stipulated bond period, you are not legally required to pay any amount to your employer being the bond itself is not enforceable under the law. Further, Section 73 of the Contract Act makes provision for unliquidated damages (not stipulated in a contract) and Section 74 of the Contract Act deals with liquidated damages (stipulated in a contract), and no compensation is attracted for mere breach of contract u/s.73 and 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party. In the context, the case of Superintendence Company v/s Krishna Murugai( 1980 Air 1717) of Delhi High Court and the case of Percept D' Mark v/s Zaheer Khan ( Appeal (Civil) 5573-5574 Of 2004) may be referred to. Normally an employment bond is executed at the time of joining employment that involves certain expenses incurred for training, and grooming of an employee, but the same terms of a bond cannot be reinforced at the time of promotion of an employee that he deserves by virtue of his skill, performance and dedicated service for the growth of the Company. When you tendered your resignation and now serving the notice period in terms of your employment, and on expiry of the notice period, if the company demands any compensation in terms of employment bond, then if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, Apart, you can file an application u/s.33C(2) of I D Act before the concerned Labour Court claiming your F & F Dues dues receivable on your resignation from the employer/company. But, if you are holding the position of manager or supervisor in the Company, you have to file a civil suit against the Company before the Civil Court taking the recourse of the relevant law as explained hereinabove for desired relief in the matter and in addition, you can file a criminal suit against the Company for criminal intimidation under Sec.503 of IPC. Consult with a Corporate Lawyer experienced in the subject of service matters for guidance and steps.
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