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sanjay kumar (Advocate)     10 January 2022

Legal Notice

An employer has appoint an employee by signing bond with both. An employee has taken training and left the company without any information. Now my question is that can employer give a legal notice by demanding the expanses which he had paid to his employee.


 10 Replies

Manish   10 January 2022

yes employer can

Shashi Dhara   10 January 2022

If he has sufficient grounds in terms and conditions .

P. Venu (Advocate)     10 January 2022

Yes, the employer can send the notice and as well file tha civil suit. However, the decision depends upon the nature of training given and the expensed incurred.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     10 January 2022

Yes, Employer can based on the Bond executed.

Dr J C Vashista (Lawyer)     11 January 2022

Both employee and employer are bound by terms and conditions of appointment / bond executed, accordingly employer is well within his right to recover (shall recover) the amount spent for the training and development of employee.

P. Venu (Advocate)     11 January 2022

An employment bond is a negative contract and hence it is bound to be construed strictly especially in the light of the provisions of Section 27 of the Indian Contract. It is enforceable only if the parties had agreed with their free consent  

i.e. without fraud, coercion, undue influence, mistake and misrepresentation. Courts have held that the employer shall be entitled to recover damages only if a considerable amount of expenditure was borne by the employer. Law mandates the employment bonds to be “reasonable” in order to be valid. Conditions stipulated should be necessary to protect the interest of the employer and compensate the loss caused by breach of contract. Additionally, the penalty or compulsory employment period stipulated should not exorbitant.

G.L.N. Prasad (Retired employee.)     11 January 2022

Anyone can serve notice on anyone, and the person that receives must send a suitable reply.  It is up to the court to decide whether the employee has availed expert training and left the job within admitted minimum years of service.  This is common in several highly paid jobs, to get expert training on job locally abroad, and abandon the employer suddenly when employer spent so much for imparting training.  This is definitely not proper and against service conditions stated in the agreement.

Siddharth Srivastava (Advocate)     12 January 2022

yes. employee is bound to compensate the employer with vast and interest.

Megha   16 January 2022

Hi,

An employment bond refers to an agreement with a negative covenant. Such bonds are signed to mainly ensure that an employer's  resource and time is not wasted in training an employee without any benefit derived from such training to the employer.  

This bond is legally valid and enforceable in India if the same is not obtained with free consent of the parties.  Time and again courts have held that the employer can recover damages in case of a breach if the costs incurred are significant.  

The employer can certainly send a legal notice to the employee for leaving without any explanation and notice.  In the case of M/S. Sopra India Pvt. Ltd vs Mr. Akhil Singhal, the Delhi High Court held that recovering compensation from an employee for employee's failure of not serving the compnayas per the terms of thecontract is not ipso facto unfair and unreasonable. The employer is liable to recoup expenses incurred as liquidated damages. 

An employement bond can be challenged under section 27 of the Indian Contract Act, 1872 which prohibits any agreement in restraint of trade and profession.

Best regards,
Megha

P. Venu (Advocate)     16 January 2022

It could be seen that in the above mentioned case, the plaintiff was awarded only a paltry sum as compensation. (Rs. 6338/- with 6% interest against the claim of Rs. 67338/- inclusive of 12% interet.)


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