Employment bond
Suresh
(Querist) 07 December 2014
This query is : Resolved
i am currently working at a premier coaching institute as a faculty. I have signed a service bond with company for 3 years. they have taken 2 postdated cheques worth of 10 lakhs. i joined the company in june 2014. so its been almost 6-7 months i am working there. now I want break the bond as i dont see my career in the company. but i am afraid of the bond as they might take legal action against me if i leave the job. plus i came to know that employment bond is illegal in India. i am going through a lot of pain as i dont know what to do. please give some advice
Isaac Gabriel
(Expert) 07 December 2014
Employment bond cannotbe enforced.The cheque for 10 lakhs likely to bring legal action.Try settle amicably.
Anirudh
(Expert) 07 December 2014
Mr.Gabriel is right to some extent. But certainly not in this case.
This is for the simple reason that they coaching institute might have contracted your services and on the basis of that service contract they might have gone ahead in conducting classes. Now, if you leave in between breaching the contract, they have every legal right to come after you and claim the bond money. What you have is not an employment bond it is a contract. You cannot have a cake walk. Similarly, the coaching centre will also have a tough task in enforcing. But they will surely be after you. That's for sure.
Rajendra K Goyal
(Expert) 08 December 2014
If you break the bond you would b liable to pay.
The company has further secured itself by taking 2 PDC of Rs. 10 lacs. Case of cheque bouncing may be initiated against you.
Better try to continue service or quit after amicable settlement.
Guest
(Expert) 08 December 2014
I endorse the views of Shri Anirudh. About your apprehension, "they might take legal action" that depends upon the contents of the bond, for which examination and analysis of the contents/ language of the bond vis-a-vis the terms of your offer cum appointment letter by some expert is necessary.
So far as your views, "i came to know that employment bond is illegal in India," are concerned, employment bond is an agreement between the employer and employee for service to his employer. Unless any provision of the bond violates any provision of the Contract Act that cannot be treated as illegal or void.
So, to be sure about your position, it would be better for you to get your service related documents, along with the employment bond, examined by some expert for appropriate advice.
ajay sethi
(Expert) 08 December 2014
agree with Mr Anirudh
Guest
(Expert) 08 December 2014
What Ever It May be First Consult a Local Good Advocate and Issue Them A Notice Regarding the Cheque held by them along with the copy of the Letter Attested by Banker Regarding Stop Payment .Then Serve Them with another Legal Notice Regarding your Dissatisfaction with Job and Issue 30 Days Notice With Legally Valid Reasons To Resign the Job.Basing on their Behaviour you Could Proceed Legally If Required.
malipeddi jaggarao
(Expert) 09 December 2014
I too agreed with expert Mr.Anirudh. Have an amicable settlement.
P. Venu
(Expert) 10 December 2014
The bond could be enforced if the employer had given some specialized training. And even if the bond is to be enforced, it could be through a civil action, and not through a criminal proceeding under Section 138 of the NI Act.
T. Kalaiselvan, Advocate
(Expert) 11 December 2014
I agree with the observations of experts especially that of Mr. Anirudh and Mr. Dhingra. The author may decide next course of action based on the valuable advises rendered by experts and save his position.
Kumar Doab
(Expert) 14 December 2014
The learned experts have given valuable advice. Kindly follow it.
You are working as employee or what is the relationship?
You are not satisfied with the job for some reasons that you have not elaborated, howeever elaborate to your able Labor Law Consultant/ Service matters lawyer/Law firm handling such cases....and show each document on record starting from job advt,job application, interview call letter, selection letter, offer letter, appointment letter, HR policy/service rules and regulations and duty hours mentioned in appointment letter, service agreement, salary slips,duty roaster,time table, work assigned/performed,stinkers if any etc....
Do you have any evidence of breach that would render the employer as unworthy to be employed with?
Your counsel may suggest and structure/draft representations so as to build favorable record in writing under proper acknowledgement...
The service agreement is created in lieu of what?
Has the employer extended any extra ordinary favor that would require some committement from you in return?
Is there any communication issued video which the demand of undated or post dated cheques is made? If yes is there reason mentioned towards the demand?
Has the Establishment issued any acknowledgement of cheques?
Apparently it is some tutorial/Instt. For private gain and might have registered / was required to register under (Name of the state) Shops and Commercial Establishment Act that was enacted to govern the service conditions of employees working in establishment covered by this Act, and you might be covered by the def. of employee in it....
and the establishment might have been violating the service conditions....
The state govt.might have issued notifications that such establishment shall be covered by the standing orders.....
Liquidated damages inserted by employer in private agreement created by employer may not have to be necessarily paid on demand and might have to be proved....
Is there any clause on liquidated damages to be paid by employer/other party in case of breach by it?
The employer might claim that you can not rescind the contract signed by you with your free will and that you are not covered by any of the labor law enactment however your lawyer may opine that you are and can suggest you the remedy and merits.....after examining your doc's on record and your inputs and build your case.
As already suggested by shrimp Dhingra, You would need to spend quality time with your lawyer and,have patience.
Your lawyer may suggest suitable ways to handle the cheque collected from you as some collateral or security..... like a suggestion given by Mr. NJS Raj Kumar.
If you are perturbed due to some disappointment/dissatisfaction then you can not continue to live on edges since you have signed some contract and fear psychosis that the other party may chase you.....however you should also not hurry and fall in legal traps....
It is suggested that you should avoid proceedings on your own....
