Sir, I joined an IT firm, signed a bond of 1 lakh if minimum service if 2 year on a stamp paper . But, after waiting till 1 year , I haven't got any work and use to just get salary without doing anything. But, that ruins my future. So, I just left the company and started Gov job preparation. Now, I am continuously threatened by a legal notice on my email. Now, I am unemployed and hardly bear my daily expense. I am too afraid , that will they arrest me, because neither I nor my family I have money to pay them.
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1) there is no arrest merely because you have failed to pay the bond money
2)if any legal notice is issued deny your liability to pay Rs 1 lakh as bond money
3) mention that company had not spent any money on your training
4)that you were sitting idle fro one year without any work and hence resigned
For an employment bond to be valid under Indian law, it has to be proved that it is necessary for the freedom of trade. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. If an agreement is challenged on the grounds of violating the provision relating to restraint of trade, the onus is on the party supporting the contract to show that restraint is reasonably necessary to protect his interests.
As per the mandate of Section 27, any terms and conditions of an agreement which directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid under the Indian law, The employee has right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time
But all this are comes under civil remedy so they could not proceed in criminal law and could not arrest . The firm can levied only compensation from you as per the recitals in the bond. So avoid the threats from mind and ready to pay the compensation as assured by you ,the same time you can challenge the bond in court.The validity of Employment bonds can be challenged on the basis of Section27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.
These types of strict and rigid employment bonds have no validity in India and be assured, it cannot be enforced in a court of law.
Do not worry, the company can do nothing against yu on the strength of this bond.
Sir, you need not worry and none can arrest you. This is a civil matter and therefore your company may ask compensation by showing some damages for you leaving the company and in the same time you have the liberty to challenge the contract under sec 27.
I have simply replied your query and hope my reply helps you.
No arrest can be made for this.
If however they proceed to issue you a legal notice, refute the contentions by saying that the company has not made any expenditure on you and therefore you are not liable to pay any money.
There is a judgement of SC to this effect that if company has made no expenditure on the employee then no money in lieu of bond amount should be given or can be taken.
Make sure that you give a reply to the legal notice in hard words.
Regards
Firstly no company or firm would not pay for no work. matter must be something different.
Generally, firm/company do not act for leaving job before bond period. If your firm is mailing you on this then do not panic, you will not face any criminal prosecution for this like arrest. You only need to consult a lawyer in pune who practises in labour court there then contest the case in labour court. only if the court orders to pay bond amount then only you have to pay that amount.
in order to safeguard their interest, employers have of late started to obtain an employment bond from their employees who are found suitable for training or skill development. Such employment bonds are agreements between the employer and employee wherein among other terms & conditions of the employment, an additional clause is incorporated which requires the employee to serve the employer compulsorily for a specific time period else refund the amount specified as bond value.
The courts in India have held in its various judgments that in the event of breach of contract by the employee, the employer shall be entitled to recover damages only if a considerable amount of money was spent on providing training or incurred other expenses for the employee.
if no amount was spent on your training then you may contest the same legally by first giving a reply notice.
