company bond breakage
2 weeks ago
in my current company i have 3 years bond with 5 lakhs breakage. I served this company for 2years 1 month due to family reason i want to quit my current company they are asking need to pay total 5lakhs amount
A.Dear Client,
An employment bond doesn't establish any relationship between an employer and employee until it's properly executed. In India, such bonds can be contested under Section 27 of the Indian Contract Act, 1872, which prohibits agreements restraining trade. Employees have the right to resign even if bonded, unless they're divulging trade secrets to a competitor. Damages may be sought under Sections 73 and 74 of the Act if actual loss occurs due to breach. Workmen can address grievances with the Labour Commissioner, while managers must file civil suits.
Hope this answers your query.
An employment bond doesn't establish any relationship between an employer and employee until it's properly executed. In India, such bonds can be contested under Section 27 of the Indian Contract Act, 1872, which prohibits agreements restraining trade. Employees have the right to resign even if bonded, unless they're divulging trade secrets to a competitor. Damages may be sought under Sections 73 and 74 of the Act if actual loss occurs due to breach. Workmen can address grievances with the Labour Commissioner, while managers must file civil suits.
Hope this answers your query.
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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 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. So, in the prevailing situation, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter.
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. So, in the prevailing situation, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter.
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A.Dear Sir,
If you are not in need of experience certificate and relieving letter then you need not bother about their claim and bond otherwise you have to oblige to serve three years bond period.
If you are not in need of experience certificate and relieving letter then you need not bother about their claim and bond otherwise you have to oblige to serve three years bond period.
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