Accused for breach of contract
Dushyant Pandya
(Querist) 05 February 2010
This query is : Resolved
Contract was executed between employer and employee. After some time employee left the organisation with immediate effect. Is any clause or way to take criminal action against employee as due to that employer facing huge business loss?
A V Vishal
(Expert) 05 February 2010
Without perusing contents of the agreement it is not possible to reply whether action can be taken or not, further you state that your client is facing a huge business loss because the employee left him, please tell the facts as to why your client is facing loss since the employee left?
B K Raghavendra Rao
(Expert) 05 February 2010
In an employer-employee relationship, criminal action can be taken only the employee has misappropriated funds or taken away property of the employer. Other matters are covered only in labour courts or civil courts. In your question, it is understood that employee had occupied an important position and because of his sudden absence the work of the employer is suffering. You cannot take criminal action against the employee under the above circumstances.
Parveen Kr. Aggarwal
(Expert) 05 February 2010
Mere suffering of huge business loss by the employer does not make the employee liable for criminal action unless and until his act amounts to misappropriation, criminal breach of trust or other such wrong.
N RAMESH.
(Expert) 06 February 2010
I agree with Mr.Rao
Adv.Shine Thomas
(Expert) 06 February 2010
No,You can't take any criminal action against the employee.
Sukhija
(Expert) 06 February 2010
No criminal action cannot be taken against him for leaving the job, u can file case for breach of contract, if any.
Dushyant Pandya
(Querist) 06 February 2010
Sir, First would like to thanks for your reply. In our case employees trained by employer for specific performance and assigned a project to complete. Now, employees are leaving for better opportunity on half way of the project. And due to that work suffers and cost to company and its reputation. Moreover, employee left the employer and join the competetors only. Please advice.
B K Raghavendra Rao
(Expert) 06 February 2010
In the circumstances explained by you now, definitely no criminal action could be initiated against the employee.
Dushyant Pandya
(Querist) 07 February 2010
Sir, Thanks for your reply. Then please advice how to reduce attrition rate of the company. As employees were taking knowledge and training and thereafter without performing they left the employer.
Parveen Kr. Aggarwal
(Expert) 13 February 2010
Get bonds from them with the condition that if employees leave the company before a particular period (say 2,3 or 4 years) they will indemnify the company by making payment of a particular amount. The amount may be fixed keeping in view all the factors.
