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Bond agreement breach by employee
4 months ago
I signed a bond agreement of 18months(6month probation) for the sound engineer job to a music studio for 2.4LPA in Bangalore. Its 6 months now. I want to resign the job due to work torture & mental health issues. Employer has my education certificate & didn't give me bond agreement soft copies. It was mentioned employee should give 3months notice period on the agreement before quitting. As far i remember there wasn't any penalties mentioned. Can i resign the job now by giving the employer 3months notice period? Will employer be able to sue me for breaching agreement? if employer refuses to give back my education certificate or blackmail me in any manner which all legal actions i can take on the employer?
The employer hasn't spent any money on me for grooming nor the company had any trainings for me. It was direct interview and appointment.
Please advice me the procedure i should follow up to resign the job and the consequences will arise on my bond breaching.
A.Dear Client,
If you have followed the resignation terms outlined in your employment letter, the employer-employee relationship concludes upon the expiration of the notice period. An employment bond alone does not establish a binding relationship unless it adheres to legal requirements. Employment bonds can be contested under Section 27 of the Indian Contract Act, 1872, which prohibits agreements restraining lawful trade or profession. Employees have the right to resign, even if bound by an employment bond. Courts may issue an injunction if the employer proves potential disclosure of trade secrets when joining a competitor. Section 73 addresses unliquidated damages, and Section 74 deals with stipulated damages, not applicable unless actual loss occurs. Unfair labor practices, such as withholding certificates, relieving letters, and Full & Final settlement, warrant a legal response. If you are categorized as a workman under the Industrial Dispute Act, serving a notice and approaching the Labor Commissioner might resolve the dispute. Otherwise, a civil suit can be filed in the Civil Court for appropriate relief.
Thankyou
If you have followed the resignation terms outlined in your employment letter, the employer-employee relationship concludes upon the expiration of the notice period. An employment bond alone does not establish a binding relationship unless it adheres to legal requirements. Employment bonds can be contested under Section 27 of the Indian Contract Act, 1872, which prohibits agreements restraining lawful trade or profession. Employees have the right to resign, even if bound by an employment bond. Courts may issue an injunction if the employer proves potential disclosure of trade secrets when joining a competitor. Section 73 addresses unliquidated damages, and Section 74 deals with stipulated damages, not applicable unless actual loss occurs. Unfair labor practices, such as withholding certificates, relieving letters, and Full & Final settlement, warrant a legal response. If you are categorized as a workman under the Industrial Dispute Act, serving a notice and approaching the Labor Commissioner might resolve the dispute. Otherwise, a civil suit can be filed in the Civil Court for appropriate relief.
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A.Dear Client,
If you tendered your resignation following the terms of the offer/appointment letter then on the expiry of the notice period, the relationship between employee and employer gets severed/seized. , 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 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 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. Withholding of academic certificates, and relieving letter, F & F dues of an outgoing employee amounted to unfair labour practice on the part of the Employer. So, in the prevailing situation, if the Company takes any legal action against you and 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 unfair labour practice to resolve the grievance. Otherwise, you need to file a civil suit against the Company in Civil Court seeking appropriate relief in the matter.
If you tendered your resignation following the terms of the offer/appointment letter then on the expiry of the notice period, the relationship between employee and employer gets severed/seized. , 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 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 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. Withholding of academic certificates, and relieving letter, F & F dues of an outgoing employee amounted to unfair labour practice on the part of the Employer. So, in the prevailing situation, if the Company takes any legal action against you and 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 unfair labour practice to resolve the grievance. Otherwise, you need to file a civil suit against the Company in Civil Court seeking appropriate relief in the matter.
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