Legal Notice for not joining Company
5 months ago
I have received a job offer from a company, in which there is a bond, if i fail to join for any reason, then i have to pay Rs.75,000/-. I Have accepted that offer, but after a week i found that place is not suitable for us. so i decline immediately after one week. I received offer on mail, so i take a printout and sign then send to them. i have not signed original papers. they are enforcing to to pay that amount. what can i do?
A.Dear Client
You will have to respond to their notice/mail either through a lawyer or yourself and keep your position clear.
Let them initiate any legal action and then your lawyer shall be able to counter them.
You will have to respond to their notice/mail either through a lawyer or yourself and keep your position clear.
Let them initiate any legal action and then your lawyer shall be able to counter them.
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A.Dear Client, A service/contract 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. Service Bond, cannot make an employee liable to face any legal consequences for deficiency on the part of the employer. 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 counter legal notice to the Company, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance. you may serve a legal notice to the Company and get in touch with a Corporate Lawyer experienced in the subject for guidance and steps.
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A.Dear client
Carefully review the terms and conditions mentioned in the offer letter, especially those related to the bond and any financial penalty for non-joining. Take note of the specific language used, the duration of the bond, and the consequences for not joining. Communicate with the employer or the HR department in a professional manner. Explain the reasons for your decision not to join and any circumstances that led to your change of mind. It's essential to maintain a respectful and open line of communication.
Carefully review the terms and conditions mentioned in the offer letter, especially those related to the bond and any financial penalty for non-joining. Take note of the specific language used, the duration of the bond, and the consequences for not joining. Communicate with the employer or the HR department in a professional manner. Explain the reasons for your decision not to join and any circumstances that led to your change of mind. It's essential to maintain a respectful and open line of communication.
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