2 year indemnity bond 2 year indemnity bond

2 months ago

An orderly working in district court
After selection.
At joining time asking an affidavit bond regarding if I leave this govt job before 2 years
Candidate should pay 3 months salary.

Now I want to leave this job after 9 months

What should I do for relieving letter by district judge without paying any compensation money.

Anik

Responded 2 months ago

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A.Dear Client,

When you resume a job and accept the terms and conditions of service, including an affidavit related to a service bond, it is essential to comply with the specified terms of employment. Breaching these conditions may render you liable to pay three months' salary if you resign before the stipulated time. However, it's crucial to note that a service or employment bond itself does not establish a legal relationship between an employer and an employee unless specific steps are taken to make the bond valid and enforceable under the law.

The validity of employment bonds can be contested based on Section 27 of the Indian Contract Act, 1872, which prohibits agreements that restrain trade and profession. According to this law, an agreement, including an employment bond, is deemed illegal if it restrains someone from engaging in a lawful profession, trade, or business. Section 27 establishes that any terms and conditions in an agreement compelling an employee to serve the employer or restricting them from joining a competitor or another employer are not valid. An employee retains the right to resign from employment, even if they previously agreed to an employment bond specifying a specific service period.

However, if 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 from joining the competitor. Additionally, Section 73 of the Indian Contract Act covers un-liquidated damages (not stipulated in a contract), while Section 74 deals with liquidated damages (stipulated in a contract). Compensation for mere breach of contract is not automatically attracted under Sections 73 and 74 unless the breach results in actual loss or damage to the opposing party (employer).
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Vidhi Samaadhaan Vidhi Samaadhaan

Kishan Dutt Kalaskar

Responded 2 months ago

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A.Dear Sir,
If you are not in need of experience and relieving documents then you are at free to walk out from the company without any risk.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 2 months ago

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A.Dear Client,
When you resume the job accepting the terms and conditions of service and swear an affidavit to the extent of a service bond, you have to abide by the said terms of employment and breach of said conditions would make you liable to pay 3 months' salary if you tender your resignation before the specified time. However, 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 based on 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. 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 Act makes provision for un-liquidated 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. Reach out to an Advocate for guidance and steps.
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