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Bonded JOB

(Querist) 17 March 2008 This query is : Resolved 
Hello its Biprangshu Saha, presently working in Larsen & Toubro Limited in 'Graduate Engineer Trainee' Post , I have signed a 2 years of bond with a compensation of 2 Lakh of rupees. It’s about 7 month I am in this job.
Larsen & Toubro has 4 operating division 1) EBG-electrical business group.
2)HED-Heavy engineering division. 3)E&C-Engineering & Construction division
4) & Mechanical division.

Before that agreement it was told that I will be given choices to join above mentioned dept. After one month(one month for orientation program without having a OD ) of joining & aggreement signing our choice was asked I put my first choice to HED & 2nd choice to EBG & 3rd was E&C.I was not interested to E&C & Mechanical but I as told to priorities all the depts. But they did not take care of my choice & put me to E&C. I told to HR to change my dept. But they ignored. In the E&C I am given some estimation , costing for bidding related job in which I have least interest as I am a engineer & like to built my carrier with technical job .
I decided that I will quit & will have M.TECH degree. I worked hard & appeared in GATE (graduate aptitude test for engineer).I have cracked GATE with high score. Now I want to leave L&T.

I have heard in India bonded job are not allowed, 2 nd thing one sided bond are not allowed etc.
I think that was one sided bond as there was not any demand entertained from our side, even in which dept we want to work.

Please help me out, is it possible to break the bond.
Manish Singh (Expert) 17 March 2008
Dear Mr. Saha,

Neither it is a case of bonded labour nor this kind of contractual obligations are covered under the Bonded Labour(Regulation & Abolition) Act.

You are a trainee and the Company has incurred much of it's expenses upon you so that you come out a bit fruitful for the Company.
If you break this bond(breach of the contract), you will be covered under Sec 73 of the Contract Act and you will be liable to compensate(pay damages) the Company the amount you have agreed to in the bond.

This is for reference :
Toshnial Brothers (Pvt.) Ltd. v. E. Eswarprasad & Ors., 1997 LLR 500 decided by the Madras High Court. In this case, an employee who was engaged as Sale Engineer committed a breach of the undertaking when he left the services of the plaintiff after serving for 14 months only as against the contracted period of three years. When the case reached the High Court, the High Court of Madras held that in such a case, it becomes unnecessary for the employer to prove separately any post-breach damages. On the other hand, it would suffice to substantiate the fact that the concerned employee was the beneficiary of special favour or concession or training at the cost and expense wholly or in part of the employer and there had been a beach of the undertaking by the beneficiary of the same. In such cases, the breach would per se constitute the required legal injury resulting to the employer, out of the breach or violation by the employees. The High Court, also clarified that while awarding damages as stipulated, the statutory exception for mitigating the quantum of damages will have no bearing.


Biprangshu Saha (Querist) 18 March 2008
Dear Sir,
But what about the injustice they did to me. They simply took my signed agreement, telling me that my choice to join a dept will be asked. But what did they do. They simply pushed me such a dept they want after one month of signing the agreement. I wanted to join DNA (Defense nuclear & aerospace) a part of HED or Medical Instruments or Control & automation a part of EBG, but they did not allow me to join although i have enough qualification to join that.
Sir you are telling me to be a bit fruitful for the company. But a company not taking care of my satisfaction, doing everything as they wish,forcing me to follow the way they want, is it possible for me to become fruitful to Larsen & Toubro Limited ? They are simply taking advantage of my signed bond papers .
After 2 years not a single company will treat me as Hard ware engineer they will simply treat me as estimation engineer, as at that time I will have experience on proposal,estimation etc. My career will finish. Is it not injustice .
Manish Singh (Expert) 18 March 2008
Dear Mr. Saha,
We have complete sympathy to you but it all depends upon the agreement you entered into with the said company. Kindly let me have the following info:
What the said agreement says if you dont get your choice of department? Is it silent on the issue?
Is the Comapny is at liberty to transfer you at any place of their deapartment or concern in the said agreement.
Biprangshu Saha (Querist) 18 March 2008
Dear Sir,
Thank you for giving attention in my case.
Yes sir you are true that this point was silent in the issue i.e. there was not anything written about choice if entertained or not.And i made a blind beliefe on their words. But I dont know about their internal legals whether they have the right to transfer me at any place of their deapartment in the training period .
Manish Singh (Expert) 18 March 2008
Always keep in your mind that you should not enter into a contract without having regard to pros & cons of it. You should have negotiated at the time of entering into the contract about the issues in your mind.
The transfer clause will be there in your agreement, look for it.
Was this transfer done with malafide intentions or was just a routine work of the company?
Biprangshu Saha (Querist) 18 March 2008
very sorry to say that i dont know about transfer clause.I will be very happy, if you can kindly inform me about TRANSFER CLAUSE .
And making agreement that is a routine work. This is done in every year for new joinings in L&T Ltd.
manmeet singh arora (Expert) 18 March 2008
Dear MR SHAH
1.THE TRANSFER CLAUSE IN THE AGREEMENT IS A CONDITION ON WHICH YOU AGREE TO JOIN A PARTICULAR JOB.
2.YOU HAVE TO LOCATE A PARTICULAR SENTENCE AS DRAFTED IN THE AGREEMENT WHICH
SAYS THAT THE COMPANY IS AT LIBERTY TO TANSFER YOU IN ANY DEPARTMENT.
3.IN CASE YOU CAN TAKE THE HELP OF AN ADVOCATE TO INTERPRET THE TRANSFER CLAUSE
4.YOU CAN SUBMIT YOUR GRIEVANCE IN FORM OF AN APPLICATION AND SEND IT THROUGH REGISTERED POST AND IT WILL ACT AS A DOCUMENTRY EVIDENCE THAT YOU HAD TAKEN ALL STEPS TO INFORM THE HR DEPARTMENT ABOUT YOUR PROBLEMS.
5. THE LETTER SHOULD BE ADDRESED TO HR DEPARTMENT.

BEST REGARDS
Hiralal Das (Expert) 07 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.


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