Employment Bond

Dear Sir,

Collect documents (initial offer, emails, WhatsApp, new bond).

If things worsen or they harass you, you have strong grounds to approach:

Labour Commissioner, Vizianagaram

Or file complaint under Shops & Establishments Act / Industrial Disputes Act.

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 compel the employee to serve the employer or put a restriction on them joining the competitor or other employer are not valid. Under the Indian Contract Act, an employment bond is considered void under the following circumstances: (1) Agreements in which consideration and objects are unlawful in part (Section 24); (2) Agreements without consideration unless it is in writing and registered, or is a promise to compensate for something done (Section 25); (3) Agreements in restraint of marriage (Section 26); (4) Agreement in restraint of trade or profession(Section 27). The employee has the right to resign from employment even if he has agreed to the employment bond to serve the employer for a specific period to pursue a better career. 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 and 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. Further, right to work has gained some recognition through judicial interpretation, particularly about the right to life as stated under Article 21 of the Constitution. The Hon'ble Supreme Court in Olga Tellis & Ors. v Bombay Municipal Corporation & Ors., decided on 10th July, 1985, (1985 (3) SCC 545) recognized the right to work as a fundamental right inherent in the right to life. Apart, the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights also recognize the right to work in employment and the state's responsibility to safeguard this right. The right to work prevents the removal of any person from employment or the deprivation of a person being employed, except as per the procedure established by the relevant laws. Thus, from the contents of the query, it prima facie appears that the arbitrary and discriminatory action of the college management to be unconstitutional and impermissible under the law that infringes the fundamental right of a person as enshrined under Article 21 of the Constitution and is challengeable before the High Court, by moving a writ petition under Article 226 of the Constitution of India seeking appropriate relief in the matter. Hence, it is recommended to consult with an experienced Senior Advocate to understand your rights and remedies to navigate the matter effectively. Apart, you can escalate your grievance before the regulatory authority of all universities, including private universities, i.e, the University Grants Commission(UGC). To streamline the stakeholders' grievance redressal mechanisms, UGC has merged its existing portals/ helplines except for Anti Ragging Helpline and developed a new portal "UGC e-samadhan: A step forward: Service to Stake Holders" which would be a single Window system for all the stakeholders for registering their complaints/ grievances on the portal which would be available 24x7 with a click of the mouse. A toll-free No. 1800-111-656 is also available on the UGC website 24x7 for lodging complaints by the stakeholders on any issue faced by them in the colleges or universities to resolve their grievance/complaint.