manoj (engineer) 20 March 2013

Company bonds

MY BROTHER HAD JOINED A SOFTWARE COMPANY AND HE HAD SIGNED A BOND..BUT AT THAT TIME HE HAD NOT NOTICED ALL THE CLAWS AND RULES WRITTEN...

SUDDENLY ,AFTER 1.5 YEARS LATER THE COMPANY HAD TERMINATED HIM . AND THE COMPANY IS NOW ASKING TO PAY Rs 2 Lakhs ..

I have gone through that bond ,and it has written that ,one may be terminated by the company anytime and his previous benefits with the company will not be paid and the terminated person needs to pay the bond value i.e. 2 Lakhs..And one more thing the company has not invested any money on some special cource ,training etc.

Now,

Dear Respected Seniors ,

Can there be a bond like that .Is it humanity ? You yourself will terminate a person and will ask that person to pay you money .

If this is a vlaid bond in indian Constitution ,Any body can use it as business .One will recruit somebody for 2 years bond ,get his work done for 18 months and he will pay him form 7-8 months and terminate him and then ask him to pay 2 lakhs...

Kindly suggest me, what can be done??

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4 Replies

Kumar Doab (FIN) 20 March 2013

The employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm before signing on the dotted line.

It is better to consult in advance than to repent later.

The emotional outbursts won’t fetch any relief.

The company shall always claim you signed by your free will.

It shall be appropriate to show the advertisement for the job, interview call letter, selection letter, offer letter, appointment letter, standing orders of the company, bond, stinkers/show cause notice/notice/charges leveled by company/Inquiry conducted by company, termination order, legal notice demanding bond money etc… to a competent and experienced labor consultant/service lawyer in person, give inputs in person, spend some quality time with your lawyer, and understand the merits, and then proceed under expert advice of your lawyer. Is there any clause on arbitration in the agreement??? You must not conceal anything from your lawyer.

It is reiterated that the ground and reason for creating the agreement e.g: employee was beneficiary of any special favor, concession, training at the full/part cost of employer or not….and based on such reasons was there any breach of the service agreement/undertaking signed by employee………..and due to breach of the agreement by employee ……any damages suffered by employer…. legal injury suffered by employer…….should be looked into by a competent and experienced labor consultant/service lawyer-law firm specializing in such cases.

If at all mater lands up in court, the courts can assess and decide the reasonable cost which won’t be higher than the amounts expressed in agreement.

The court may decide that the mitigating the cost of damages is not necessary……..

You may understand the Sections 73, 74 of the Indian Contract Act and the implications in your case.

If at all you wish to submit anything in writing to the company let it be structured and drafted by your lawyer.

In the meantime you may find the attachments useful.

If you feel like you attach the documents in this thread.

Kindly erase the names etc to maintain the confidentiality.

Attached File : 137621038 417759075 validity of employment bonds.pdf, 137621038 background paper.pdf downloaded: 111 times

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manoj (engineer) 21 March 2013

Here is the scanned copy of the bond...kindly help me

Kumar Doab (FIN) 21 March 2013

No attachment is found in your post.

Did the company employ you as trainee/apprentice under standing orders of management/Management’s Training Programme/Apprenticeship Act??

If the company has issued a notice/legal notice, don’t hesitate or wait and approach a competent and experienced labor consultant/service lawyer in person, give inputs in person, spend some quality time with your lawyer, and understand the merits, and then proceed under expert advice of your lawyer.