service bond-break
Querist :
Anonymous
(Querist) 07 February 2010
This query is : Resolved
Sir,
Iam working as an engineer in a psu -govt of india company from june 2008 onwards.just like all psu's I was asked to sign a service bond agreement for 5 years.But unlike other psu bonds this bond was for a sum of Rs 10 lakhs for liquidated damages.
eventhough i was selected for the department,i was forced to put up in an uninterested domain which i was reluctunt to accept in interview.but it is in same department.
Now 6 months back I got a training for 5 days in a technical software as part of the work which i was not interested and not told in the agreement .the training was worth 1 lakh.
I am totally exhausted with the current job due to the continuos torture from two superiors .Due to them only iam planning to quit from this company. iam searching to opt for higher studies or other company in my interested field.
could you please advice if i quit what are the possible legal problems and also kindly advice what to do before goinG to quit.
the copy of bond I have signed is atteched here with
B K Raghavendra Rao
(Expert) 07 February 2010
In terms of the agreement executed by you with the company, you are bound to serve the company for a minimum of five years inclusive of one year probation period. If you want to quit, as per clause 5 of the agreement you need to pay Rs. 10 lakhs to the company. This clause can be enforced in a court of law.
Make an application before the Managing Director of the company explaining your difficulties and for waiver of Clause 5 of the agreement.
Querist :
Anonymous
(Querist) 07 February 2010
is it a oneside bond? i need to pay this huge sum????any provision to challenge this legally in court??
Raj Kumar Makkad
(Expert) 07 February 2010
You should have chellenged it when it was going to be enforced upon you. You have lost this valuable opportunity and have to follow the terms of the agreement executed.
Querist :
Anonymous
(Querist) 07 February 2010
who knows the situation inside the company before joining?
Kiran Kumar
(Expert) 07 February 2010
dear friend this bond can not be challenged, its a matter of contract between two parties....it came into existence only after both the parties agreed to term and conditions of the contract or that of job.
you were not compelled to join the company, there terms were merely invitation to offer, u offered and they accepted...therefore the contract.
B K Raghavendra Rao
(Expert) 07 February 2010
This is not a one-sided bond. You are offered training and after training, if you leave the services, what should happen to the planning of the company so far as manpower resource vis-a-vis work output is concerned. There was an offer from the company and you have accepted the offer. The contract is complete. You are bound by their terms.
Querist :
Anonymous
(Querist) 08 February 2010
But there is no meaning for this 10 lakh in any sense of investment.Neither a goverment company in india asked for this much huge amount for liquidated damages.i got a training worth 1 lakh only and iam ready to pay back.is there any provision to reduse this amount?
no where in this bond they mentioned about the definition for "10-lakhs -liquidated damages,and training"
and one more thing.the second para says that for the above selected post(engineer-design) i have bound for the service agreement for 5 years.so if i change this designation say (engineer-production) whether this bond exist or not) kindly clarify.
Raj Kumar Makkad
(Expert) 08 February 2010
There is no provision to reduce such amount once it has been agreed by you while making a contract. Only the opposite party can exonerate you. Better you contact the company and talk with it and convince to accept your views. Courts cannot help you in this matter and it is not your legal right to violate once accepted agreement.
Querist :
Anonymous
(Querist) 08 February 2010
I GOT AN INFORMATION ON THIS REGARD IN OTHER WEBSITE AS FOLLOWS""
In India Bond is illegal as follws
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’s amounting to the violation of the rights mentioned under Article 19.
[b]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 its is enforced and if performed would violate principles of natural justices.
[/b]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 court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
[b]Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.[/b]
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."""
CAN ANY BODY EXPEDITE ON THIS?
Querist :
Anonymous
(Querist) 10 February 2010
there is a statement in para 2 of this bond that "this agreement is for the above mentioned post (engineer-design)".so what happens if my post changes .say if I got transfered to another post like engineer(production).could you please confirm in that case this bond exist or not
