Legal Question in Employment Law in India

Hi Experts, I worked in an IT company in INDIA, when I joined I signed a bond with them that I cant leave the company before 15 months,but after 9 months of service, I got an opportunity to work with other good company, and I took a medical leave for a month and joined another company, And switched off my phone.

Its not a two sided bond, the bond description contains that I cant leave the company, however they can terminate me anytime when they see i am not performing or under performing, one another person joined with me signed the same agreement was terminated by them because of some simple issue.

Now its about one month I am working in my new company, but yesterday I received a mail from previous company that you have not attending the office for one month, and you have breached the agreement for that you have to pay rs 100000 for breaching of agreement, when I searched on Internet, everyone is saying employment bond is not valid in INDIA.I am really tensed.

Please suggest me what to do...


Asked on 12/06/10, 7:46 pm

1 Answer from Attorneys

Hi,

Employment Bonds are governed by the Indian Contract Act. Any two parties entring into the contract need to comply with the conditions of the Contract. Any one of them not complying the condition would amount to Breach of Contract.

Employment Bonds which are illegal, coersive , unethical or contrary to any law or provision are invalid. But where the parties agreed the terms knowingly that such conditions can impose certain liabilities and therefore accepts it would be a valid contract.

In the present case which you have narrated the company has full right to recover Rs 100000/- in case of such breach. The amount which the companies demand in the bond is treated as the training cost incurred or to be incurred on the employee. So if your past company has not provided you any specialized training and you have valid grounds for leaving the job then certainly you have merit in case and you can get out of it.

For more details and further plan of action you can contact us on the below mentioned details

regards

Ph: 09811617186

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Answered on 12/06/10, 10:14 pm


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