Hi,
I have recently signed a service agreement for 2 years with a company. It had been 5 days i was with the company and i got another good job with a better package. I want to know what will be consequences if i break this bond. should i really pay them if i break the agreement and will there be any legal proceedings that might affect my career. This is the actual draft agreement sent by the company.
This agreement made at Hyderabad on this the __ day of ____ year Two Thousand and Twelve by and between xxxxxxxxxxx, a company registered under the Companies Act, 1956 having its registered office at xxxxxxxxxxxxxxxxx Hyderabad - 5xxxxxxxx (hereinafter referred to as the “Company”).
A N D
1. Mr. __________ aged about ________, S/o_______________ residing at ____________________------ (hereinafter referred to as “Trainee NOC Engineer”).
2. Mr. ______________aged about ________Years, S/o __________ residing at _________________Occupation : _____________ who is the __________ of the Trainee NOC Engineer and is in the capacity of being a related surety promising and undertaking on personally having understood the contents hereof after having been explained the same by ________________ who has read and translated the same to enable the same to be understood by Mr. ________________ (hereinafter referred to as the “the related surety” for brevity); and
3. Mr. _____________ aged about _________ Years, S/o_________________residing at __________________ Occupation ________________ serving as __________________at the office of ________________ and drawing a monthly salary of Rs.______________ as evidenced by the salary certificate dated __________________ issued by the ______________________who is the appropriate authority for the said Mr. ___________________ who, being familiar with and literate in English, has also read the contents hereof and on
understanding the same chosen to affix his/her signature as additional surety hereto (hereinafter referred to as the “other Surety” for brevity) (both the related surety and the other surety being jointly hereinafter referred to as “the Sureties” for brevity)
WHEREAS the Trainee NOC Engineer has approached the Company _______________ and offered himself/herself of his/her own free will and with the consent of the Sureties for appointment as a Trainee NOC Engineer which has been accepted by the Company, which has therefore issued a letter dated _________________ to the Trainee NOC Engineer who in turn has accepted the above letter,
WHEREAS the Trainee NOC Engineer in view of the above has further undertaken to serve the Company subject to the terms and conditions specified herein in addition to those specified in the Company’s aforesaid acceptance letter dated ____________________-
WHEREAS the Sureties have in consideration of the appointment of the said Trainee NOC Engineer as above stated have agreed to stand guarantee for due fulfillment and observance of the terms and conditions specified herein and
WHEREAS the Sureties have jointly and severally agreed to furnish the details of their respective properties etc., as per Annexures - A & B respectively.
1. THE TRAINEE NOC ENGINEER HEREBY AGREES.
1.1 To serve the Company for a period of 2 (two) Years month inclusive of training as set out in Clause No.3 of the terms and conditions of the Appointment Letter dated _______________ issued by the Company and duly accepted by the said Trainee NOC Engineer.
1.2 To obey and to abide by the rules and regulations, service conditions and standing orders of the Company as may be in force from time to time and to comply with orders of his superiors issued from time to time.
1.3 That in the event of his committing breach of any of the terms of this agreement, the Trainee NOC Engineer shall compensate the Company by paying to the Company the following amounts.
i. Expenses towards Professional and Technical Training @ Rs.5, 000/- per month.
ii. Actual stipend paid during the training period and,
iii. Liquidated damages of Rs.1, 00,000 (Rupees One Lakh Only) which represents a genuine estimated of damages that would reasonably be caused to the business of the Company on account of the said breach of agreement and
iv. Any other expenses relating to loss of man and machine hours which otherwise would have fetched a reasonable amount of profits to the business of the Company.
1.4 That in the event of the Trainee NOC Engineer leaving, abandoning or resigning from the services of the Company during the mandatory period of service as provided herein and in the appointment letter dated ______________ or if the services of the Trainee NOC Engineer are terminated by the Company for breach of any of the terms and conditions of the service or for any other reason, the Trainee NOC Engineer shall not directly or indirectly engage in or carry on or be a part of the process of IT services and Technology in which the Trainee NOC Engineer was trained/engaged in at present and is being carried on by the Company and the Trainee NOC Engineer shall not serve in any capacity whatsoever or be associated with any person, firm or company carrying on similar business as that of the company either in India or abroad, for the remaining period of the said mandatory service period of two years and one more year thereafter.
2. THE SURETIES HEREBY AGREE:
2.1 The Sureties hereby undertake to ensure due compliance of the terms of this Agreement by the Trainee NOC Engineer. The Sureties shall jointly and severally be liable along with the Trainee NOC Engineer jointly and/or severally for all the amounts that a Trainee NOC Engineer may become liable to pay to the Company on account of breach of any of the terms of this agreement. Further, it is clearly understood that it shall not be necessary for the Company to proceed against the Trainee NOC Engineer to recover any amount that may become due by the Trainee NOC Engineer to the Company under this Agreement. Even without proceeding against the Trainee NOC Engineer, the company can directly proceed against the Sureties only and/or against the related Sureties or the other Surety or either of any three of them or against any two at its own and sole discretion. The fact that the Company proceeds against one of them shall not discharge the liability of others to the Company under this agreement.
3. The Company shall not be responsible for any interruption in or stoppage of training as well as service due to exigencies of work or for causes beyond its control.
4. The conditions of appointment of the Trainee NOC Engineer with the Company as contained in the appointment letter issued by the Company, save as expressly modified hereby, shall remain unaffected and shall continue to be binding on the Trainee NOC Engineer and his/her Sureties.
5. In case of any dispute arising out of this agreement, it shall be subject to the jurisdiction of appropriate Court at Secunderabad / Hyderabad / Ranga Reddy District
IN WITNESS WHEREOF these presents are executed on the day and the year first above written.
WITNESSES: SIGNATURE OF THE TRAINEE NOC ENGINEER (Name & Address in Block letters)
SIGNATURE OF THE RELATED SURETY (Name & Address )
1.
SIGNATURE OF THE OTHER SURETY (Name & Address )
2.
ANNEXURE - A
Details of the Related Surety
1. Name of the Surety:
2. Father’s Name:
3. Residential Address & Phone No.:
4. Office Address & Telephone No/Fax No.
5. Monthly Income:
6. Relationship with the Trainee NOC Engineer:
7. Banker’s Name and Address and Account No.:
Signature of the Related Surety
ANNEXURE - B
Details of the Other Surety
1. Name of the Surety.:
2. Father’s Name:
3. Residential Address & Phone No.
4. Office Address & Telephone No/Fax No.-None
5. Annual Income: Rs.
6. Relationship with the Trainee NOC Engineer:
7. Banker’s Name and Address and Account No.:
Signature of the Other Surety
As it had not been more than a week i joined them and no training was provided till now can i execute this agreement without paying anything to the company..?
Thanks and Regards
Anonymousindian
