Employment Bond Employment Bond

5 months ago

I am working as a Digital Marketing Head in an organisation. they have asked me to sign a Employment bond of 2 years. that time I had signed it. but after 6-7 month the started saying you are not performing as per our expectation. and indirectly asking me that you should work more hours but I denied. I had a family event at my house i asked them to approve a leave of 2 days and a work from home as I had not a ticket for my travel. they just called me in the morning while I was busy in Mool Pooja. when i found the missed calls after being free from the pooja I called them. but after that i got multiple whatsaap messages humiliating me for taking a non approved leave although leave was verbally approved. then I send them a message that "I can't work with people who don't know how to communicate. and asked for termination on ground of miss communication and non performance. but they are not ready to terminate and transferred to legal department. I got a call that i took their laptop though I did not taken any laptop from the organization. called my previous organization told i have said ill words about my chairman. The Organization had not given me the joining letter or Bond paper. I had to come back although I don't want to work with them. Applying to multiple positions few of them have considered me and asking for joining .

I request you to please guide me should I join the new organization. they are not even telling about the notice period it is of two months or 1 months. the director is sying you will have to work till we have your replacement. not clear about days months or years. Please Guide me.

Anik

Responded 5 months ago

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A.Dear Client,
As per Indian labor laws, organizations are required to provide a notice period before terminating an employee's services. You are not legally obligated to work for an employer who is treating you unfairly. You have the right to resign from your job at any time. If you decide to resign, you may be entitled to certain severance pay or other benefits. If you have been offered a position at a new organization, you may want to consider joining them. However, it is important to be clear about the notice period requirements of your current employment contract. Keep copies of all emails, text messages, and other forms of communication you have with your employer. This documentation will be important if you decide to take legal action.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 5 months ago

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A.Dear Client,
A service/employment bond itself does not create any relationship between an employer and an employee unless and until it is followed by the essential steps required to make the Bond valid and enforceable under the law. 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. 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 after serving a legal notice to the Company, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer over alleged victimization and unfair labour practice to resolve the grievance. Otherwise, you need to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter.
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