Hi,
A friend of mine went for On the Job training to parent software company in foreign. But, it was on a agreement basis for 2years after completion of his training. Right now, he his in a state of leaving the company because of personal reasons.
So, he has to pay a huge bond value of 24lacs if he has to break the bond agreement of 2years.
So, what are all the legal implications if he wants to leave that company. Is it practically possible?
From India, Gurgaon
A friend of mine went for On the Job training to parent software company in foreign. But, it was on a agreement basis for 2years after completion of his training. Right now, he his in a state of leaving the company because of personal reasons.
So, he has to pay a huge bond value of 24lacs if he has to break the bond agreement of 2years.
So, what are all the legal implications if he wants to leave that company. Is it practically possible?
From India, Gurgaon
if the employee has signed a bond/agreement with company, he has to honour it. The Company would have the right to recover the agreed amount from the employee if he leaves in breach of the Agreement. They can even go to the Court to recover the amount.
Your friend can talk to the management and dicuss the matter with them telling them his personal reasons. They can come to a settlement if both parties agree to it.
From India, New Delhi
117Your friend can talk to the management and dicuss the matter with them telling them his personal reasons. They can come to a settlement if both parties agree to it.
From India, New Delhi
Dear Friend,
but what if company it self changes the dates of the bond,(extend the date) and then threaten employee fo any legal action.
At the time of foreign travel the end date of bond was displayed and later company postponed the bond date.
Poor employee dont have the proof as now a days it is in soft.
pls explain further this matter for any further legal proceedings.
Regards
From Saudi Arabia, Riyadh
but what if company it self changes the dates of the bond,(extend the date) and then threaten employee fo any legal action.
At the time of foreign travel the end date of bond was displayed and later company postponed the bond date.
Poor employee dont have the proof as now a days it is in soft.
pls explain further this matter for any further legal proceedings.
Regards
From Saudi Arabia, Riyadh
Dear All
We find lot of posts on Bond Breaking.
It is not as easy as one thinks of breaking bond .There are serious consequences which will happen without the Employees knowledge.
Having done certain research on the case law of Bond Breaking we find that it is favoring the Employer .This is because of the legal route adopted by the Employers for enforcement of the Bond ,Employers go through the process of Arbitration and get an award very many times exparte i.e in the employees absence .The advantage for Employers is because the Employees are reluctant to part with their address and the Employer goes for service of notice on the old address and gets the verdict from the Arbitrator in their favor.The scope of the appellate process against such awards is very limited and the award by the Arbitrator is confirmed.The instances of Employees resisting such claims is minimal.Once the Employer gets the verdict the time for enforcement is 12 years.
Therefore it is better to plead to your employer to relieve you from the obligations of the Bond by sending an “escalation letter “to the Higher up than your HR Head say if it is an MNC to the HQ.It may sometimes work.In case this also does not work out you can send a “frustration Letter” for the record.In case there is legal case this letter may help.For getting the letters you need to take legal help on your specific facts.
The other option exposed by case law on enforcement on negative covenants is where the Employer is forced to terminate the Employee instead of the employee resigning . This option needs to be exercised and dealt with great care as you might have other issues cropping up. .If there is termination then the Bond cannot be enforced.
Also creating an Employees Forum with an All India Network to provide Legal Assistance at nominal cost to defend Bond cases on the Employees side can be a solution.This can match the legal strength of the Employers.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
We find lot of posts on Bond Breaking.
It is not as easy as one thinks of breaking bond .There are serious consequences which will happen without the Employees knowledge.
Having done certain research on the case law of Bond Breaking we find that it is favoring the Employer .This is because of the legal route adopted by the Employers for enforcement of the Bond ,Employers go through the process of Arbitration and get an award very many times exparte i.e in the employees absence .The advantage for Employers is because the Employees are reluctant to part with their address and the Employer goes for service of notice on the old address and gets the verdict from the Arbitrator in their favor.The scope of the appellate process against such awards is very limited and the award by the Arbitrator is confirmed.The instances of Employees resisting such claims is minimal.Once the Employer gets the verdict the time for enforcement is 12 years.
Therefore it is better to plead to your employer to relieve you from the obligations of the Bond by sending an “escalation letter “to the Higher up than your HR Head say if it is an MNC to the HQ.It may sometimes work.In case this also does not work out you can send a “frustration Letter” for the record.In case there is legal case this letter may help.For getting the letters you need to take legal help on your specific facts.
The other option exposed by case law on enforcement on negative covenants is where the Employer is forced to terminate the Employee instead of the employee resigning . This option needs to be exercised and dealt with great care as you might have other issues cropping up. .If there is termination then the Bond cannot be enforced.
Also creating an Employees Forum with an All India Network to provide Legal Assistance at nominal cost to defend Bond cases on the Employees side can be a solution.This can match the legal strength of the Employers.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
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