Employment Service Bond
Anuj
(Querist) 08 March 2011
This query is : Resolved
I would like to know that is service bond legal in india.
my background is like , I was sent to abroad on deputation for 82 days .Company has taken sign of mine on service bond of 5 years and 5 lacks stating the expenses made on me for training . However, no training had given to me , I was on work infact booked manhours for my activities.
I have completed 1 year of my bond time , in this time I find some other good option. So am i need to give 5 Lac. can company make any legal case on me.
Are they have the rights to hold my LTA, salary , PF and Reliving letter.
Please help
Advocate. Arunagiri
(Expert) 08 March 2011
If you voilate the contract terms, you are liable to pay the compensation.
You can take defence only in the court.
The company is having rights to retain your monetary benefits, in such a case.
Basavaraj
(Expert) 09 March 2011
I do agree that companies have right to sue against their ex-employees for violation of contracts. But as per the recent judgments by SC and various High Courts nowadays bonds are not valid in India.
In India Bond is illegal w.r.t employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.
As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.
Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The Supremes Court also has stated that the employer cannot hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.
Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.
I have attached lots of Judgments on this.
