Bond break
2 months ago
I am fresher and work for small it farm for 2 month and their was a 2 year bond, i have leave and farm for family issue matter and also inform my condition to an manager as well as HR and they have suggest me to you can continue or you can resign. So I have deside to resign job and Now From company i am getting call of you have break bond. Please suggest me what should I do?
A.Dear Client,
A service or employment bond, on its own, does not establish a legal relationship between an employer and an employee unless certain essential steps are taken to validate it under the law. The validity of employment bonds can be contested under Section 27 of the Contract Act, 1872, which prohibits agreements restraining trade and profession. Such agreements are considered illegal only if they restrict someone from pursuing a lawful profession, trade, or business. Section 27 mandates that any terms compelling an employee to exclusively serve the employer or restricting them from joining a competitor or another employer are not valid.
Employees have the right to resign, even if they have committed to a specific service period in the employment bond. In cases where the employer can prove that the employee is joining a competitor to disclose trade secrets, the court may issue an injunction order restricting the employee.
Sections 73 and 74 of the Act address unliquidated damages and liquidated damages, respectively. Compensation for breach of contract is only applicable if the breach results in actual loss or damage to the employer.
If a company terminates your service, disregarding adverse health conditions and threatens to demand compensation for a breach of the service bond, it constitutes victimization and unfair labor practice. In such situations, if you are categorized as a workman under the Industrial Dispute Act, serving a legal notice and filing a complaint against the company with the office of the Labour Commissioner can be pursued. Alternatively, you can raise an industrial dispute before the State Govt. Industrial Tribunal or file a civil suit in the Civil Court seeking appropriate relief. Expert legal services are available for guidance and assistance in navigating the issue.
A service or employment bond, on its own, does not establish a legal relationship between an employer and an employee unless certain essential steps are taken to validate it under the law. The validity of employment bonds can be contested under Section 27 of the Contract Act, 1872, which prohibits agreements restraining trade and profession. Such agreements are considered illegal only if they restrict someone from pursuing a lawful profession, trade, or business. Section 27 mandates that any terms compelling an employee to exclusively serve the employer or restricting them from joining a competitor or another employer are not valid.
Employees have the right to resign, even if they have committed to a specific service period in the employment bond. In cases where the employer can prove that the employee is joining a competitor to disclose trade secrets, the court may issue an injunction order restricting the employee.
Sections 73 and 74 of the Act address unliquidated damages and liquidated damages, respectively. Compensation for breach of contract is only applicable if the breach results in actual loss or damage to the employer.
If a company terminates your service, disregarding adverse health conditions and threatens to demand compensation for a breach of the service bond, it constitutes victimization and unfair labor practice. In such situations, if you are categorized as a workman under the Industrial Dispute Act, serving a legal notice and filing a complaint against the company with the office of the Labour Commissioner can be pursued. Alternatively, you can raise an industrial dispute before the State Govt. Industrial Tribunal or file a civil suit in the Civil Court seeking appropriate relief. Expert legal services are available for guidance and assistance in navigating the issue.
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A.Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
[email protected]
Addresses of Labor Inspectors in Bengaluru in different locations
https://karmikaspandana.karnataka.gov.in/page/Contact+Us/Labour+Inspector/en
https://clc.gov.in/clc/regional-offices/bangalore#:~:text=1.&text=Shram%20Sadan%2C%203rd%20Main%2C%203rd,Yeswanthpur%2C%20Bangalore%2D560022..
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Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
*****
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
[email protected]
Addresses of Labor Inspectors in Bengaluru in different locations
https://karmikaspandana.karnataka.gov.in/page/Contact+Us/Labour+Inspector/en
https://clc.gov.in/clc/regional-offices/bangalore#:~:text=1.&text=Shram%20Sadan%2C%203rd%20Main%2C%203rd,Yeswanthpur%2C%20Bangalore%2D560022..
=======================================================================
Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
*****
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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 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 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 in 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. In case the company terminates your service ignoring your adverse health conditions and threatens you to demand compensation for breach of service bond then such an action will amount to victimisation and unfair labour practice on the part of the Company. 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 company over alleged unfair labour practice to resolve the grievance. You can also raise an Industrial dispute directly before the State Govt. Industrial Tribunal under Sec.2A of the I D Act. Otherwise, you need to file a civil suit against the Company in Civil Court seeking appropriate relief in the matter. In case you need our expert service, feel free to contact our legal team or avail of our paid consultation service to navigate the issue in the right way.
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 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 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 in 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. In case the company terminates your service ignoring your adverse health conditions and threatens you to demand compensation for breach of service bond then such an action will amount to victimisation and unfair labour practice on the part of the Company. 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 company over alleged unfair labour practice to resolve the grievance. You can also raise an Industrial dispute directly before the State Govt. Industrial Tribunal under Sec.2A of the I D Act. Otherwise, you need to file a civil suit against the Company in Civil Court seeking appropriate relief in the matter. In case you need our expert service, feel free to contact our legal team or avail of our paid consultation service to navigate the issue in the right way.
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