IT Contract

Dear Client.
Please go through the terms and conditions of the service bond and find out whether there is any clause or terms specifying penal provision for breach of the terms of the Bond by the employee. 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. Regardless of reasons, on cessation of employment, an employee is entitled to an experience certificate, relieving letter and F & F settlement dues from the employer within 30 days of the last working days (LWD) and denial of which amounted to unfair labour practices. 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 or the office of the Chief Inspector, Shops and Establishments, as the case may be, to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, Further, SAMADHAN Portal was launched by the Ministry of Labour and Employment for facilitating filing of industrial disputes by the workmen, employers and trade unions under the Industrial Disputes Act, 1947. The online portal has a user-friendly interface and enhanced transparency and grievance resolution efficiency for all stakeholders. The workmen/trade unions/management can file their disputes and claims by logging into the portal through the UMANG app and also by visiting the nearest Common Services Centres. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter.