cpc

validity of bonded employment


Hello,

I have read the article @ "http://csrajanadvocate.blogspot.in/2013/10/bond-is-illegal.html", it explains that such contracts are not valid to the extent of such clause.

I also read from some other source, which I am unable to cite at the moment, that at most only the training expense or such other expenses which were directly attributable towards the employee could only be recovered and not just any amount specified in the contract.

Say, for example, one of the clauses stipulates that if the employee leaves the employment earlier than completion of 2 years from his appointment then he shall be liable to pay Rs. 2,00,000 or say amount equivalent to "X" month salary". Then if the employee leaves prior to the completion of the stipulated time then he is not bound to pay that much amount, but the amount specified, or the manner of the determination of the amount is the maximum amount which can be recovered from him.

Further, the amount of compensation is to be determined by the court, which normally is the amount of training and other directly attributable expense.

 

Please elucidate on the subject matter.

 

 
Reply   
 
FIN

Once matter is in court, the decision is pleasure of court of law.

Court of law decides on facts and merits.

The said Bond is crafted on what grounds, extra ordinary benefits provided to you?

 
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FIN

What kind of training is provided to you?

The said training added to some qualification or extra ordinary skills or it was to handle the counters of employer?

The court of law may decide that the said Bond is; unconscionable, unreasonable, void…………………..or employee is to pay on Pro Rated basis.

 
Reply   
 
FIN

There are many threads on similar discussions at LCI that can be searched in ‘SEARCH’ Option, that you may go thru e.g;

 

http://www.lawyersclubindia.com/experts/Issuance-of-no-objection-certificate-for-outside-employment-561211.asp

 


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FIN

 

You may go thru illustrations and citations  

http://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp

 

 
 


 
Expert : PS Dhingra, 1962dcg@gmail.com 

Posted 3 years ago


Click to Talk 

Nicely explained by Shri Kumar Doab.

 

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FIN

Pfa;

Bond 1



Attached File : 60926 20170514211744 940542793 bond 1.docx downloaded 50 times

Total likes : 1 times

 
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FIN

Pfa

Bond2



Attached File : 60926 20170514211808 940542793 bond 2.docx downloaded 46 times

Total likes : 1 times

 
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Dear Sir,

I have yet not finished reading the context cited by you, but so far I enjoyed reading your comments. Comments of other experts were also useful. I will enjoy reading the remaining part as well.

My this query was out of curiosity, to know more about the matter.

Thanks for your advice and comments.

 

Regards

Prateek

Income Tax Consultant

 
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FIN

You are welcome.

 
Reply   
 
Director

Once matter is in court, the decision is pleasure of court of law. Court of law decides on facts and merits. The said Bond is crafted on what grounds, extra ordinary benefits provided to you?  

 

 
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