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Didnt join company and received legal notice
4 months ago
I have signed a MoU cum Bond with a Company when accepting their Offer Letter in which its mentioned I will work here for 2 year. Also it was mentioned that neither you look for another job nor company will look for another candidate. if anyone break rule, they will pay 1 month salary.
To be honest, the company has waited 3 months for me.
I got to know that the company has very long hours working culture and I got better opportunity. So I have informed the company via email at the end of 3rd month.
And I joined another company. Now I received a legal notice from their lawyer about the same thing that I have pay 1 month of salary. Also they have mentioned that they will include my new company in this matter if needed and tell my new company about breach of MoU cum Bond..
I really found this thing very cheap and unprofessional that they are dragging my current company into this matter even they have nothing to do with this. I more feel it as threatening.
Note:
I have not even taken single penny from that company.
I didn’t join the company for 1 hour even.
A.Dear Client,
The existence of a service or employment agreement alone does not establish a legal relationship between an employer and an employee; certain essential steps are required to validate and enforce the agreement under the law. Section 27 of the Indian Contract Act, 1872, prohibits agreements restraining trade and profession, stating that such agreements are illegal if they hinder someone from engaging in a lawful profession, trade, or business. Any terms in an agreement compelling an employee to serve the employer or restricting them from joining competitors are not valid under this section. Employees have the right to accept or resign from employment, even if bound by an employment bond specifying a specific period of service. However, if the employer can prove the employee's intention to disclose trade secrets by joining a competitor, the court may issue an injunction order. Sections 73 and 74 of the Contract Act, 1872, address unliquidated and liquidated damages, respectively, with compensation only applicable if the breach results in actual loss or damage to the employer. In this scenario, responding with a counter-legal notice and seeking guidance from a service matter advocate in case of further legal action would be advisable.
Thankyou
The existence of a service or employment agreement alone does not establish a legal relationship between an employer and an employee; certain essential steps are required to validate and enforce the agreement under the law. Section 27 of the Indian Contract Act, 1872, prohibits agreements restraining trade and profession, stating that such agreements are illegal if they hinder someone from engaging in a lawful profession, trade, or business. Any terms in an agreement compelling an employee to serve the employer or restricting them from joining competitors are not valid under this section. Employees have the right to accept or resign from employment, even if bound by an employment bond specifying a specific period of service. However, if the employer can prove the employee's intention to disclose trade secrets by joining a competitor, the court may issue an injunction order. Sections 73 and 74 of the Contract Act, 1872, address unliquidated and liquidated damages, respectively, with compensation only applicable if the breach results in actual loss or damage to the employer. In this scenario, responding with a counter-legal notice and seeking guidance from a service matter advocate in case of further legal action would be advisable.
Thankyou
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A.Dear Client,
When you did not report for assignment in terms of appointment letter, any agreement signed by you is not enforceable upon you. Until and unless a selected person resumes his official assignment in terms of the offer letter it is typically termed as abandoned. A service/employment agreement/bond itself does not create any relationship between an employer and an employee unless and until it is followed by the essential steps required from both sides to make the Agreement/Bond valid and enforceable under the law. Section 27 of the Indian Contract Act,1872 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 accept an offer of employment or resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period. In the case where the employer can 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 Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the given situation, you may serve a counter-legal notice in response to the Company's legal notice and even on receipt of your legal notice, they take any legal action, reach out to an Advocate handling service matter for guidance and steps.
When you did not report for assignment in terms of appointment letter, any agreement signed by you is not enforceable upon you. Until and unless a selected person resumes his official assignment in terms of the offer letter it is typically termed as abandoned. A service/employment agreement/bond itself does not create any relationship between an employer and an employee unless and until it is followed by the essential steps required from both sides to make the Agreement/Bond valid and enforceable under the law. Section 27 of the Indian Contract Act,1872 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 accept an offer of employment or resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period. In the case where the employer can 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 Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the given situation, you may serve a counter-legal notice in response to the Company's legal notice and even on receipt of your legal notice, they take any legal action, reach out to an Advocate handling service matter for guidance and steps.
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A.Dear Sir,
If you have not worked in that company then they cannot do anything against you on the basis of bond etc.
If you have not worked in that company then they cannot do anything against you on the basis of bond etc.
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