Regarding breaking of goverenment service bond Regarding breaking of goverenment service bond

5 months ago

after completion 5y rs service -if not lumsump amount and salary have to return to government-?
ANY LABOUR LAWS -TO STOP DAT-

Legal Counsel Vidhikarya

Responded 5 months ago

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A.Dear Client,
As per the mandate of Section 27 of the Indian Contract Act,1872, 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/service 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. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then reach out to the office of the Labour Commissioner(Central) concerned for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance. Apart, you can file an application before the Registrar of the Central Administrative Tribunal(CAT) under Section 19 of the Administrative Tribunal Act, 1985 having jurisdiction on the subject matter(as defined under Rule 6 of CAT(Procedure) Rules, 1987 and in compliance with the procedure prescribed under Rule 4 of the Central Administrative Tribunal(Procedure) Rules 1987 and the CAT Rules of Practice, 1993. In case the Order of the CAT goes against you, then you may prefer a writ petition challenging the said order of the CAT before the High Court under Article 226 of the Constitution of India. Reach out to an Advocate experienced in handling Service/CAT matters for guidance and steps.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 5 months ago

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A.Dear Client
It seems there might be a misunderstanding in your question, and additional information is needed to provide a more accurate response.
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