breach of employment contract
Querist :
Anonymous
(Querist) 29 January 2011
This query is : Resolved
Hello all,I want to know the consequences of breach of contract.Am a fresher and had joined a company on 6th of december 2010.It had a bond(2 years + 6 months training). But i skipped the bond on jan 27th and sent them a resignation letter stating that i will not be able to render my services.If i breach the contract then i have to pay 60000 rs to the company.It was not on any bond paper,i had signed the contract on a sheet. I want to know whether the company can take any legal action against me for breach of contract
Advocate. Arunagiri
(Expert) 29 January 2011
Even if it is not on the stamp paper the company can proceed legaly, the stamp duty along with penalty will be paid in the court while filing a suit.
Your company is having every right to initiate action on you.
Basavaraj
(Expert) 04 February 2011
I have given a small write up on the issue below, I hope this gives clarity.
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.
From the above the Company cannot take any action against its ex-employees.
