Hi All,
I signed a 3 yrs service bond with the company(Automobile) which i am working for as an Asst Manager. That bond is on 100 Rs. stamp paper. Its about giving technical training abroad(Parent company) in some specific area but when i went to the actual place i found out that its about simply supplying manpower to the parent company or can say operator training in disguise. This training is meant for operators not for managers as people from other countries are also getting the same training and they all are operators Which company hide from me. Now the problem is i have signed the bond for the said training not for this operator training. I inform this to the company but they are forcing me to complete this training otherwise they will jeopardize my career.
however its almost complete only 1 month is remaining.
My question is if i leave before completion or after completion of the training then what they can do to my career.
1. Can they file a case against me for recovery
From Japan, Iwata
I signed a 3 yrs service bond with the company(Automobile) which i am working for as an Asst Manager. That bond is on 100 Rs. stamp paper. Its about giving technical training abroad(Parent company) in some specific area but when i went to the actual place i found out that its about simply supplying manpower to the parent company or can say operator training in disguise. This training is meant for operators not for managers as people from other countries are also getting the same training and they all are operators Which company hide from me. Now the problem is i have signed the bond for the said training not for this operator training. I inform this to the company but they are forcing me to complete this training otherwise they will jeopardize my career.
however its almost complete only 1 month is remaining.
My question is if i leave before completion or after completion of the training then what they can do to my career.
1. Can they file a case against me for recovery
From Japan, Iwata
CONTINUED..
of Bond amount (Rs 5lacks) and how much time it takes to resolve issues like this?
2. If they dont file the case in that case what they can do ??
such as not giving me relieving letter etc etc.
3. The most important is that how can I get out of this situation as I dont want to involve in any legal process coz in my field of expertise people knows each other and it can create a bad impression on prospective employer.
Pl suggest a way out
Thanks
From Japan, Iwata
of Bond amount (Rs 5lacks) and how much time it takes to resolve issues like this?
2. If they dont file the case in that case what they can do ??
such as not giving me relieving letter etc etc.
3. The most important is that how can I get out of this situation as I dont want to involve in any legal process coz in my field of expertise people knows each other and it can create a bad impression on prospective employer.
Pl suggest a way out
Thanks
From Japan, Iwata
sub- service bond
Since you have served all most the bond period with only one month remaining, it is better for you to complete that one month. In that case, you will stand discharged from the bond and thereafter even if you leave the service, you need not pay the bond amount, if it is linked only for the three period.Otherwise, they may create problems of relieving and probably may resort to legal action for recovery of bond amount for breach of the bond.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd.
Mumbai.
Tel: 022-28324234
From India, Mumbai
54Since you have served all most the bond period with only one month remaining, it is better for you to complete that one month. In that case, you will stand discharged from the bond and thereafter even if you leave the service, you need not pay the bond amount, if it is linked only for the three period.Otherwise, they may create problems of relieving and probably may resort to legal action for recovery of bond amount for breach of the bond.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd.
Mumbai.
Tel: 022-28324234
From India, Mumbai
Sub- service bond
A bond is a contract under Sec.2(h) of the Indian Contract Act between the employee and the employer and is enforceable under Sec.74 of the said Act where by the employee agrees to render himself liable to pay a ceratin sum stipulated inthe bond in case of breach of any obligation under the bond.
So far as the retention of educational certificates are concerned, it is better to consult an advocate for poper guidance.
B.Saikumar
Hr & Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd.
Mumbai.
From India, Mumbai
A bond is a contract under Sec.2(h) of the Indian Contract Act between the employee and the employer and is enforceable under Sec.74 of the said Act where by the employee agrees to render himself liable to pay a ceratin sum stipulated inthe bond in case of breach of any obligation under the bond.
So far as the retention of educational certificates are concerned, it is better to consult an advocate for poper guidance.
B.Saikumar
Hr & Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd.
Mumbai.
From India, Mumbai
Sub- service bond
Since the bond does not involve any transaction of sale or purchase of any property or asset or transfer of any property or asset, I do not think it requires any registration excepting executing on a stamped paper of appropriate value.However, a civil lawyer will be in a better position to reply.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
Since the bond does not involve any transaction of sale or purchase of any property or asset or transfer of any property or asset, I do not think it requires any registration excepting executing on a stamped paper of appropriate value.However, a civil lawyer will be in a better position to reply.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
Dear Sir's,
Thanks for the reply.
The bond period is 3 yrs after completion of the training and training period is itself 6 months in which i have completed 5 months of training.
So effectively 3 yrs & 1 month is remaining and i
would not like to serve that company for the remaining period.
and some more facts about Bond documents which i have signed ,
is seriously flawed
1. They made me signed the bond which was originally made for different field of expertise so the 1st & 2nd page talks about the training in that specified fields not my field of expertise
2. Bond is 1 way as it only talks about the company's interest not the executant
Regards
From Japan, Iwata
Thanks for the reply.
The bond period is 3 yrs after completion of the training and training period is itself 6 months in which i have completed 5 months of training.
So effectively 3 yrs & 1 month is remaining and i
would not like to serve that company for the remaining period.
and some more facts about Bond documents which i have signed ,
is seriously flawed
1. They made me signed the bond which was originally made for different field of expertise so the 1st & 2nd page talks about the training in that specified fields not my field of expertise
2. Bond is 1 way as it only talks about the company's interest not the executant
Regards
From Japan, Iwata
Dear
These types of Bonds are not valid in court of law.
Section 27 of indian contract act States that "Every agreement by which any one is restrained from exercising a lawful profession,trade or business of any kind is to that extent void."
It means these types of Bond are void.
Secondly holding someone is criminal offence under criminal procedure code holding some one property with dishonest intension
I have following doubts,
1. bond between Employer and Employee legally accepted.
2. Employer have rights to collect original documents (Education certificates, passports, etc.,) from employee.
Rgds
Kumar.M[/QUOTE]
From India, Delhi
These types of Bonds are not valid in court of law.
Section 27 of indian contract act States that "Every agreement by which any one is restrained from exercising a lawful profession,trade or business of any kind is to that extent void."
It means these types of Bond are void.
Secondly holding someone is criminal offence under criminal procedure code holding some one property with dishonest intension
I have following doubts,
1. bond between Employer and Employee legally accepted.
2. Employer have rights to collect original documents (Education certificates, passports, etc.,) from employee.
Rgds
Kumar.M[/QUOTE]
From India, Delhi
Mr Malik
Firstly I thank you for the very informative article on negative covenant. there is no dispute that any contract restraining an employee from employing himself after leaving the comapny is void as being vilative of Sec.27 of the Indian contract Act. So are as the other queries concerend please see my earlier reply.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
Firstly I thank you for the very informative article on negative covenant. there is no dispute that any contract restraining an employee from employing himself after leaving the comapny is void as being vilative of Sec.27 of the Indian contract Act. So are as the other queries concerend please see my earlier reply.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
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