Dear Seniors,
Greetings for the day,
I have one friend who was working with a manufacturing co. in HR. Recently he got terminated, company saying he has been terminated due to bad performance. he is in Bond (Agreement of 3yrs). In that Bond there are curtain clauses saying that if he resigned before completion of 3yrs after joining, he will payble some % of amount of his CTC. company given him 1 month salary as notice pay(notice period is 1 month). Here, I have some questions like:-
1) Can he defend in court against his termination?
2) Can he get more money from company as breach of contract by the company?
3) How many days company will laible to give his Full & Final Settlement amt.?
Pls, reply.
Thanks in Advance.
From India, Pune
17Greetings for the day,
I have one friend who was working with a manufacturing co. in HR. Recently he got terminated, company saying he has been terminated due to bad performance. he is in Bond (Agreement of 3yrs). In that Bond there are curtain clauses saying that if he resigned before completion of 3yrs after joining, he will payble some % of amount of his CTC. company given him 1 month salary as notice pay(notice period is 1 month). Here, I have some questions like:-
1) Can he defend in court against his termination?
2) Can he get more money from company as breach of contract by the company?
3) How many days company will laible to give his Full & Final Settlement amt.?
Pls, reply.
Thanks in Advance.
From India, Pune
Hi,
The company needs to prove that the terminated employee's performance
was bad .They need to have evidence/proof regarding the low performance.
If they do Not have the proof the employee can challenge the same .ie : he
can challenge the termination .
Regards
Rajeev Dixit
From India, Bangalore
The company needs to prove that the terminated employee's performance
was bad .They need to have evidence/proof regarding the low performance.
If they do Not have the proof the employee can challenge the same .ie : he
can challenge the termination .
Regards
Rajeev Dixit
From India, Bangalore
Dear Sandeep,
Based on your query, pls find my answers below:
1. Your friend can file a case in the court. But if the Company proves tho the Court about
the performance of your friend then he loses the case.
2. I also suggest that you tell your friend to read the agreement / bond again. There must
be clause in the agreement / bond which states that either party can terminate the
contract by giving 1 / 2 months notice and the liquidity damage mentioned in the
agreement also has to paid. In case if the company terminates the employee then the
company has to inform the employee 1 month in advance and certain amount has to
paid to the employee. When the Company terminate the employee during the tenure of
the bond, then Company has to pay all the dues applicable to the Employee including
the liquidity damage (if mentioned any in any clause of the agreement).
3. The full and final settlement will paid to your friend as per the Company's policy. Every
company has their own policy for settling the accounts. Come companies take 1 month
and some take 1 week or may be 2 - 3 weeks also.
From India, Mumbai
Based on your query, pls find my answers below:
1. Your friend can file a case in the court. But if the Company proves tho the Court about
the performance of your friend then he loses the case.
2. I also suggest that you tell your friend to read the agreement / bond again. There must
be clause in the agreement / bond which states that either party can terminate the
contract by giving 1 / 2 months notice and the liquidity damage mentioned in the
agreement also has to paid. In case if the company terminates the employee then the
company has to inform the employee 1 month in advance and certain amount has to
paid to the employee. When the Company terminate the employee during the tenure of
the bond, then Company has to pay all the dues applicable to the Employee including
the liquidity damage (if mentioned any in any clause of the agreement).
3. The full and final settlement will paid to your friend as per the Company's policy. Every
company has their own policy for settling the accounts. Come companies take 1 month
and some take 1 week or may be 2 - 3 weeks also.
From India, Mumbai
Firstly, any company prepares a legal agreement saying that a person breaching the contract has to pay a % of damages which need not to be vice versa.
Since the company has clearly mentioned that in case of termination,it will pay 1 month of salary an did it, you cant claim any more amount from them.
You can file a suit against the company if your really think that the termination is not justifiable.
Greetings for the day,
I have one friend who was working with a manufacturing co. in HR. Recently he got terminated, company saying he has been terminated due to bad performance. he is in Bond (Agreement of 3yrs). In that Bond there are curtain clauses saying that if he resigned before completion of 3yrs after joining, he will payble some % of amount of his CTC. company given him 1 month salary as notice pay(notice period is 1 month). Here, I have some questions like:-
1) Can he defend in court against his termination?
2) Can he get more money from company as breach of contract by the company?
3) How many days company will laible to give his Full & Final Settlement amt.?
Pls, reply.
Thanks in Advance.[/QUOTE]
From India, Bangalore
Since the company has clearly mentioned that in case of termination,it will pay 1 month of salary an did it, you cant claim any more amount from them.
You can file a suit against the company if your really think that the termination is not justifiable.
Greetings for the day,
I have one friend who was working with a manufacturing co. in HR. Recently he got terminated, company saying he has been terminated due to bad performance. he is in Bond (Agreement of 3yrs). In that Bond there are curtain clauses saying that if he resigned before completion of 3yrs after joining, he will payble some % of amount of his CTC. company given him 1 month salary as notice pay(notice period is 1 month). Here, I have some questions like:-
1) Can he defend in court against his termination?
2) Can he get more money from company as breach of contract by the company?
3) How many days company will laible to give his Full & Final Settlement amt.?
Pls, reply.
Thanks in Advance.[/QUOTE]
From India, Bangalore
Dear Sandeep,
I believe that courts in our country is for all and everyone and is for justice only. If a person or employee feels that he is unduly over exploited , victimised he can approach the court and get justice due for him. There are no second opinions on that.
However, he can get help from legal experts on this before any proceedings...
Best of luck.
From India, Mumbai
I believe that courts in our country is for all and everyone and is for justice only. If a person or employee feels that he is unduly over exploited , victimised he can approach the court and get justice due for him. There are no second opinions on that.
However, he can get help from legal experts on this before any proceedings...
Best of luck.
From India, Mumbai
There are two distinct parts to this case
1. The termination on poor performance. Every organization has a right to weed out the dead wood. For this, of course, some procedure needs to be followed ( Counseling: Written warnings ; low marks in appraisals etc) . I do not think that any company worth its salt would have short circuited these steps . Hence going to court may not be a very wise course of action.
2. The Bond : I have had numerous opportunities to study these bonds. These are one sided and heavily loaded in favour of the employer hence voidable in Indian law. Even if a contract is not one sided, it cannot give guarantee of employment to poor performers or people with dubious conduct. Hence going to court to use the bond to get extra benefits does not seem to be wise.
U K Munshi
Wg Cdr (Retd)
GM HR & Admin
Rajput Properties And Developers
From India, Delhi
1. The termination on poor performance. Every organization has a right to weed out the dead wood. For this, of course, some procedure needs to be followed ( Counseling: Written warnings ; low marks in appraisals etc) . I do not think that any company worth its salt would have short circuited these steps . Hence going to court may not be a very wise course of action.
2. The Bond : I have had numerous opportunities to study these bonds. These are one sided and heavily loaded in favour of the employer hence voidable in Indian law. Even if a contract is not one sided, it cannot give guarantee of employment to poor performers or people with dubious conduct. Hence going to court to use the bond to get extra benefits does not seem to be wise.
U K Munshi
Wg Cdr (Retd)
GM HR & Admin
Rajput Properties And Developers
From India, Delhi
Hello Sandeep,
You haven't clarified/confirmed reg the process adopted/followed by the company in terminating your friend. Pl confirm in-detail reg this aspect of the case. A lot COULD depend on this--IF this can be taken-up legally.
Reg the validity of the Bond, U K Munshi is right. In fact, this issue was discussed at-length many times in CiteHR earlier.
However, pl note that there are many ifs & buts reg this aspect--for one, has your friend been given ANY training when he joined?
Rgds,
TS
From India, Hyderabad
You haven't clarified/confirmed reg the process adopted/followed by the company in terminating your friend. Pl confirm in-detail reg this aspect of the case. A lot COULD depend on this--IF this can be taken-up legally.
Reg the validity of the Bond, U K Munshi is right. In fact, this issue was discussed at-length many times in CiteHR earlier.
However, pl note that there are many ifs & buts reg this aspect--for one, has your friend been given ANY training when he joined?
Rgds,
TS
From India, Hyderabad
Dear Taj Sateesh, (Hope I have got your name correct)
Even if he has been trained, it would be the loss to the company and not to the employee. Hence going to court will not benifit the individual
U K Munshi
From India, Delhi
Even if he has been trained, it would be the loss to the company and not to the employee. Hence going to court will not benifit the individual
U K Munshi
From India, Delhi
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Bond of Employment.doc
Bond in employment.pdf