Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Is this valid?

Guest (Querist) 05 October 2011 This query is : Resolved 
In a bond that a software engineer friend of mine had signed ,the following clause is present

"Your services will not be terminated without giving 4 month notice or 4 months of pay,however in case of any misconduct,long or frequent absence,non performance of duty,indulging in any activity which may lead to insecurity in the minds of the employees,your services may be terminated without any notice or any compensation.In the event that your services are terminated on disciplinary grounds,you shall be liable to compensate the company.Such termination shall be considered as equivalent to desertion of post and shall be liable to pay the company."

My friend underwent training for few months and the training expenses are a part of the bond money.

I request you to please give your opinion on this matter.Is such a bond enforceable.Can someone who has been made to sign a bond be made to pay the bond money in the event that the company removes him.

If i have to present the full bond it may take time.

Thank You.
ajay sethi (Expert) 05 October 2011
before signing a bond please read the clauses carefully .
in your case you have signed a bond wherein you have agreed to give 4 months notice in c ase you desire to leave the company .

since the company has sepnt money on your traning it is entitiled to recover the same if you leave the company or your services are terminated on disciplinary grounds .

the company will have to prove that X amount was spent on your taning and hence bond money is required to be recovered from you . further termination of services must not be on any filmsy grounds .
R.Ramachandran (Expert) 05 October 2011
I completely agree with the views of Mr. Sethi.
Shailesh Kr. Shah (Expert) 05 October 2011
I too agree.
Guest (Querist) 05 October 2011
Does the training expenses come under money spent on personal grooming?(I heard supreme court gave a order that only money spent on personal grooming can be retrieved).

I have one more doubt,the company has specified that the total training expenses is equal to training course cost(which is puny and fixed) plus salary given during the three months training.It has said that the total bond amount is equal to total training expenses that i have specified above plus six month salary.Which part of this amount can be claimed by the company.

The bond says that the training expenses is flexible and can be changed,but my friend received only normal training.
ajay sethi (Expert) 05 October 2011
how can it be normal training ? the company cna recover training cost . if they had sent you abroad the salary would have been more than they would have paid you in india .

once you have signed bond the terms are binding upon you provided the company can justify the amounts mentioned

Guest (Querist) 05 October 2011
I havent said anything about that.My friend has not been sent anywhere he received the same training as the rest of the guys who joined with him.He was not sent abroad.His salary during the whole period was the same as that in the offer letter.I cannot see where i mentioned that he had gone abroad!!
ajay sethi (Expert) 05 October 2011
ok my mistake .
R.Ramachandran (Expert) 05 October 2011
Even if he had not gone abroad, if there was a need to train him to make him suitable for the job, then the Company is entitled to recoup the expenses incurred over a period of time. Obviously, during the period of training, he was not working rather getting equipped to meet the requirements of the Company.
Guest (Querist) 05 October 2011
Please see my second post and reply to those questions thank you
Guest (Expert) 05 October 2011
Dear Anonymous,

Training of an employee is also a sort of personal grooming to enhance his skills, which becomes his personal property and is retained by him even after he leaves a company.

Training expenses cover sevral overheads that include salaries/facilities of trainsers, upkeep of bildings, consumables, depreciation of furniture nd fixtures. Several of these things vary from time to time due to increase in costs/ dearness, etc. So, it is always flexible.
prabhakar singh (Expert) 05 October 2011
The matter started with validity of a negative clause in a service agreement has by argument deviated upon a topic of training.

First i would like to check you upon your loose use of word bond which causes a lot of confusion. what your friend has signed is his service agreement,if found enforceable at law is a contract.The clause you refer has to be tested on the scale of REASONABLENESS IS THE VIEW OF THE SUPREME COURT.There can not be then any universal scale of reasonableness and no court can be able to lay down an index list or a parameter on which reasonableness would be tasted in each and every case,rather it would be a matter to be judged in each case on its own facts and circumstances brought before the court.the provision that governs this aspect is laid down in section 27 of the Indian Contract Act.
prabhakar singh (Expert) 05 October 2011
But to further clarify between my expert fraternity itself that I beg to differ those who hold view that a general training given to all employees will amount to any personal grooming of each and every employee forming the mass.
Such training is given for due to a specific nature of business of the company or to freshers pass outs who are with degree but have not been given practical ex-poser for the work they get requited at their college level.These training can not be called personal grooming by any imagination.

Personal grooming is imparted to an employee on his proving some special talent in him and that is not given at mass level
to all but to a selected number of employee(s).The negative clause imposing restriction on such employee will invariably pass the test of REASONABLENESS.
Guest (Querist) 05 October 2011
@Prabhakar Singh,thank you very much for your advice.But i am confused now.

My friend has not been selected for any special training.But he is worried that since his company is not in a good position now he might be dismissed and still made to pay.

Request someone to clarify.
Raj Kumar Makkad (Expert) 05 October 2011
If the condition of company is not good and your friend is likely to be dismissed, in that situation, your friend should not leave himself and should also not give any reason for the company to misuse that reason. Your friend shall remain preserved in that situation.
ajay sethi (Expert) 06 October 2011
company has to justify the dismmisal . valid gorunds to dismiss on disciplinary grounds
Advocate. Arunagiri (Expert) 06 October 2011
If the company is claiming any compensation or not giving the eligible salary/compensation to the employee, on moral grounds, it has to prove it with proper enquiry.

The opportunity should be given to the employee in the enquiry.

Without justifying their act, the company can not claim or deny any monetary claim.
prabhakar singh (Expert) 06 October 2011
The company can not go on four roads at the same time.If it dismisses the employee and also claim compensation from employee,there are courts to check such an insanity by its prescription.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :