Break bond contract without serve service period of 3month .
1 month ago
Break bond contract without serve service period of 3month . Employer send legal notice.
1.Bond draft on company letterhead not in Stamp paper it's legal??
2. How to reply for legal notice ??
3. Employer can ask 3 month salary to pay ??
4. What further step employer can take ?? And how to handle by employee??
5. Employee no need any experience certificate or releving letter.
6. Employer deduct 25% salary for 5 month as security deposit..it's legal??
A service or employment bond does not establish a legal relationship between an employer and an employee unless it follows the necessary steps to make the bond valid and enforceable under the law. The validity of employment bonds can be challenged under Section 27 of the Indian Contract Act, 1872, which prohibits agreements that restrain trade and profession. Such agreements are deemed illegal if they restrict someone from engaging in a lawful profession, trade, or business.
Section 27 mandates that any terms in an agreement, whether directly or indirectly, compelling an employee to serve the employer or imposing restrictions on joining competitors or other employers are not valid. Employees have the right to resign, even if they have agreed to an employment bond for a specific period. If the employer can prove that the employee is joining a competitor to disclose trade secrets, the court may issue an injunction order.
Additionally, Section 73 of the Indian Contract Act deals with unliquidated damages (not stipulated in a contract), while Section 74 addresses liquidated damages (stipulated in a contract). Compensation is not awarded for mere breach of contract under these sections unless the breach results in actual loss or damage to the employer.
In the given situation, if the company takes legal action against you and you are not in a managerial or supervisory position but classified as a workman under the Industrial Disputes Act, you can serve a strong counter-legal notice and file a complaint with the Labor Commissioner's office for alleged unfair labor practices. If you are not a workman, you may need to file a civil suit against the company in a civil court seeking appropriate relief.
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. Service of legal notice threatening legal action or withholding of 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 strong 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. Otherwise, you need to file a civil suit against the Company in Civil Court seeking appropriate relief in the matter.
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.
(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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