Dear Friends,
I am working in an IT company at Coimbatore.
We have the situation like employee involved in projects resigned before the project completion which made us huge loss and difficult in replacement. So management has decided to get the Agreement from the employee (new joiners) to sign with the condition of relieving/resigning can be accepted only after project completion.
Do anyone have the format for this agreement. Please help me.
Thanks & Regards
Geetha
1I am working in an IT company at Coimbatore.
We have the situation like employee involved in projects resigned before the project completion which made us huge loss and difficult in replacement. So management has decided to get the Agreement from the employee (new joiners) to sign with the condition of relieving/resigning can be accepted only after project completion.
Do anyone have the format for this agreement. Please help me.
Thanks & Regards
Geetha
Dear Geetha K,
The conditions of employment mentioned in the appointment letter are binding to the employee. Therefore, you do not have to enter any special agreement on and above the appointment letter. In the paragraph on "Conditions of Separation", you may insert the clause on "Continuation of Employment till the Completion of the Project".
However, please check with the legal expert on the validity of the insertion of this clause. Generally, in the appointment letter, a clause on the notice period is always mentioned. The purpose of the notice period is to an employer a breathing space to search for a replacement for the resigning employee. Now, what if the employee has worked for 4-5 years and he/she has been assigned a fresh project. The project might complete after a year. Does it mean that the employee should deprive his/her career advancement opportunities for the year? Therefore, adding a clause, on and above the notice period, whether it is valid or not that remains to be seen.
This matter is related to the labour but also falls under the purview of the contracts. Therefore, while checking with the legal expert, please seek a piece of advice from the lawyer who handles cases under "Indian Contract Act, 1872". The regular lawyers who handle the cases of labour laws may not be sufficient.
Thanks,
Dinesh Divekar
From India, Bangalore
The conditions of employment mentioned in the appointment letter are binding to the employee. Therefore, you do not have to enter any special agreement on and above the appointment letter. In the paragraph on "Conditions of Separation", you may insert the clause on "Continuation of Employment till the Completion of the Project".
However, please check with the legal expert on the validity of the insertion of this clause. Generally, in the appointment letter, a clause on the notice period is always mentioned. The purpose of the notice period is to an employer a breathing space to search for a replacement for the resigning employee. Now, what if the employee has worked for 4-5 years and he/she has been assigned a fresh project. The project might complete after a year. Does it mean that the employee should deprive his/her career advancement opportunities for the year? Therefore, adding a clause, on and above the notice period, whether it is valid or not that remains to be seen.
This matter is related to the labour but also falls under the purview of the contracts. Therefore, while checking with the legal expert, please seek a piece of advice from the lawyer who handles cases under "Indian Contract Act, 1872". The regular lawyers who handle the cases of labour laws may not be sufficient.
Thanks,
Dinesh Divekar
From India, Bangalore
Job mobility is the general rule.
Exit of employee after serving notice period or buying out notice period is the norm
Only if some special training is given involving company resources and funds,can a bond be an acceptable process.
However your concern of exit and impact on projects is valid.
Company needs to keep standby for all such important and major projects.
This will help that some one can always take over.
Dependence on one employee and reaching a stage that his exit can embarass the company would not be good for our company growth.
So HR planning for suitable employee-relavent to project is mandatory.
Keep taking updates, presentations on ongoing projects by technical side.HR can be a supportive partner by identifying replacements etc.
Exit of employee cannot be stopped just because he is key to a project-which may be long term in nature.
From India, Pune
Exit of employee after serving notice period or buying out notice period is the norm
Only if some special training is given involving company resources and funds,can a bond be an acceptable process.
However your concern of exit and impact on projects is valid.
Company needs to keep standby for all such important and major projects.
This will help that some one can always take over.
Dependence on one employee and reaching a stage that his exit can embarass the company would not be good for our company growth.
So HR planning for suitable employee-relavent to project is mandatory.
Keep taking updates, presentations on ongoing projects by technical side.HR can be a supportive partner by identifying replacements etc.
Exit of employee cannot be stopped just because he is key to a project-which may be long term in nature.
From India, Pune
You cannot indefinitely bind a employee beyond the contractual notice period if he has resigned. No company can legally retain a employee if he has resigned and completed the notice or offered to pay notice pay in lieu of serving the notice period.
From India, Chennai
From India, Chennai
Further any contract in restraint of lawful profession trade or business is void
From India, Chennai
From India, Chennai
Sec.27 of the Indian Contract Act prohibits any agreement which restricts business/ livelihood/ profession. Hence, a contract to bind an employee itself becomes void.
The Apex Court in various judgements have opined that you cannot hold an employee in service. The employee is free to accept any lucrative offer. Even there is no illegality in joining a competitor company.
From India, Kolkata
The Apex Court in various judgements have opined that you cannot hold an employee in service. The employee is free to accept any lucrative offer. Even there is no illegality in joining a competitor company.
From India, Kolkata
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Employee agreement.doc