Legal Question in Business Law in India

Validity of Service Agreement

Hi,

I'm currently working with an MNC in Gurgaon, and was sent over to UK for around 108 Days on an On the Job Training. Before we were sent over on an OJT we were made to sign a service agreement which bounded u sto wrok for the company for a tenure of 2 years after returning back to India.

Please advise what are the legal implications of the same.

Thanks in anticipation,


Asked on 7/28/03, 8:43 am

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Validity of Service Agreement

By virtue of provisions of the Contract Act, the Bond of Employment can not be enforeced to bound down a employee against his wish. However, if the Service Agreement provides for liquidated damages etc. in the event of employee leaving the service before agreed period, such an amount can be recovered from employee by the employer. You may refer to the law laid down by the Bombay High Court in that behalf in the matter of Jet Airways in the year 2000-01. In case of liquidated damages, you can always question and agitate reasonability of it.

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Answered on 7/30/03, 2:53 am


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