I am afraid that the issue has been sidelined. What law states is that there shall not be restraint of trade, business etc, under S.27 of Contract Act, 1872. However, it is with regard to doing business, trade etc. but not with regard to agreement for recovery of bond amount. Further, there are also many judgements which state that reasonable restrictions/conditions on the employees in terms of their employment is valid. Even government service also contain such service conditions and if a probationer or trainee leaves the orgainsation within a stipulated time (say one year to five years), expenditure incurred and salary paid to him would be recovered.
From India, Madras
5From India, Madras
Dear Murali
No doubt a bond is enforceable in law for recovery of damages setforth therein for any breach of it by the employee. However if the bond stipulates that the employee cannot join any other employer even after leaving the service of the company, that is violative of Sec.27 of the Contract Act because the scope of carrying business and trade includes one's right to pursue one's careerr. This was made clear by a plethora of judgements on the subject since it is sqaurely in conflict with sec.27 of the Contract Act and Art.(19) and (21) of teh Constitution which means it is unreasonable.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
No doubt a bond is enforceable in law for recovery of damages setforth therein for any breach of it by the employee. However if the bond stipulates that the employee cannot join any other employer even after leaving the service of the company, that is violative of Sec.27 of the Contract Act because the scope of carrying business and trade includes one's right to pursue one's careerr. This was made clear by a plethora of judgements on the subject since it is sqaurely in conflict with sec.27 of the Contract Act and Art.(19) and (21) of teh Constitution which means it is unreasonable.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
Dear Sai Kumar,
I concur with you on all points. I just wanted to reply to the recovery portion of the question. As far as his joining into another company may not be legally restrained by the present employer, I feel his jumping bond would affect him than make him any good. The querist explained that in his field everyone knows the other and where he is employed. Hence, I feel that it would be better for him to convince his present employer to leave him by making an amicable agreement.
From India, Madras
I concur with you on all points. I just wanted to reply to the recovery portion of the question. As far as his joining into another company may not be legally restrained by the present employer, I feel his jumping bond would affect him than make him any good. The querist explained that in his field everyone knows the other and where he is employed. Hence, I feel that it would be better for him to convince his present employer to leave him by making an amicable agreement.
From India, Madras
Dear Malik Sir,
Thanks for the reply.
I have gone through this document it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simple a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Thanks for the reply.
I have gone through this document it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simple a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Dear Malik Sir,
Thanks for the reply.
I have gone through this document and it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simply a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Thanks for the reply.
I have gone through this document and it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simply a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Dear Malik Sir,
Thanks for the reply.
I have gone through this document it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simply a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Thanks for the reply.
I have gone through this document it talks about the contract validity after the termination of the period or services
but here i am still under the said bond period.
If i leave the job what actions company can take as they have the legal rights to recover the amount spent on the disputed training (as it was simply a manpower supply observed by me)..
So please guide me in this direction.
From Japan, Iwata
Thank you all..
Dear Murali sir
As you said they can recover the money but i can prove it that it was done intentionally as before leaving india i had different learning targets and when i went to the actual place and protested to indian management regarding this cheating they reduced the target drastically.
The thing is its very difficult to persuade them as they wont let me go because
1.everybody knows this issue in the company and its about their prestige also.
2.they have a qualified manpower and no one wants to loose that.
so if they do not agree then what can i do to get rid of that company as i do not want to serve that even for a single day.
Reagrds
From Japan, Iwata
Dear Murali sir
As you said they can recover the money but i can prove it that it was done intentionally as before leaving india i had different learning targets and when i went to the actual place and protested to indian management regarding this cheating they reduced the target drastically.
The thing is its very difficult to persuade them as they wont let me go because
1.everybody knows this issue in the company and its about their prestige also.
2.they have a qualified manpower and no one wants to loose that.
so if they do not agree then what can i do to get rid of that company as i do not want to serve that even for a single day.
Reagrds
From Japan, Iwata
Conforntation is not always good. Think about long term goals. Do you think any other company take an employee who has entered into litigation or filed a case against his previous employer? Or for that matter any company take an employee who has breached bond/service condition ? How can new employer believe you that you don't do the same to them? Can an employer take a querulous employee?
So, confrontation/litigation is not at all a good solution. It will mar your credibility and prospects of getting new job opportunities. Even if you hide these things, it will constantly haunt you that one day it may come out.
Think coolly. It seems you are firmed up in your decision of not working for the company. However, have some cool talk with the company HR management and try to negotiate for an honourable exit. If company prestige also involves, definitely they may also consider an amicable settlement.
All the best.
From India, Madras
So, confrontation/litigation is not at all a good solution. It will mar your credibility and prospects of getting new job opportunities. Even if you hide these things, it will constantly haunt you that one day it may come out.
Think coolly. It seems you are firmed up in your decision of not working for the company. However, have some cool talk with the company HR management and try to negotiate for an honourable exit. If company prestige also involves, definitely they may also consider an amicable settlement.
All the best.
From India, Madras
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