• Bond break

Hello Sir/Ma'am

I was working with a company which I had too leave suddenly since I was interested in another offer and also the old company was paying me way more less amount of 10000 salary per month which is way more less than a skilled labours daily wage. I was in a bond period and couldn't repay the company. Since, I had all my originals with me; I cited personal reason to officially leave the company through a mail.
The duration of work was around 5 months.
In return I never got an official response. I was called telephonically over a period after a 3 or 4 weeks to come down to office and settle the matter to clear the bond and settle the matter. I tried to go but couldn't. 

After 2 months they've issued a legal notice to me through an advocate which I did not accept.

What should I do? should I be worried about it? since they have issued a letter on behalf of my father also. 
It has become a pretty tough time to cope up with personal things and this legal notice issued. I have also asked my parents not to accept any kind of letter from the advocate.
Please guide
Asked 4 years ago in Labour

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12 Answers

What does this 'service bond' reads?

Generally, service bonds are not enforceable in India being hit by sec. 27 of the Indian Contract Act. Still, one will have to peruse the service bond in your case to give you a concrete advice, and if turns out to be too rigid, it is definitely not enforceable and hence you need not worry of any legal ramifications of your act.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Hello,

I do not think so that the company will pursue the matter in the court.

It will however be good if you settle the matter with the company. Not accepting the legal notice will not have any effect on your case though.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Sir the company can file a suit to recovery the bond amount along with the compensation of damages occurred due to your leaving the job uninformed without proper notice in this scenario the company shall proceed against you.

Further the best thing to do at this time is to settle with the company. if it does not the company shall go to court for recovery of amount.

Even in case you do not accept notice the company can directly proceed against you so evading notice wont help.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

It would be best to reply to the legal notice. Avoiding it isn’t goint to help. The company may or may not initiate legal proceedings to recover the bond amount.

An advocate worth his or her salt should be able to help you draft a cogent reply to the legal notice. A proper articulation of the true factual and legal position may deter them at this very stage by letting them know that you are not scared.

Pulkit Chandna
Advocate, New Delhi
191 Answers
5 Consultations

4.9 on 5.0

1) you must accept legal notice

2) refusal to accept legal notice is deemed service

3)you must deny allegations made in legal notice

4) mention reasons why yo left organisation

5) also that company did not incur any expenses on your training

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

You have done mistakes by mistakes.

Firstly you should have obtained relieving letter from them after having sent your resignation letter

Second thing you refused to accept their legal notice, by this you will not come to know their demand because as [per section 27 of Indian contract act, the bond is illegal and demand for the same is not maintainable in law.

Now you will be getting summons from court which you cannot avoid.

Be watchful, on receiving summons you may consult an advocate and proceed as per the advise received.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

Dear,

Bond time is not mention in this question and what was written in bond, what you pay on

behalf of breaking the bond. Please specify, because if all the conditions mentioned in that bond

then you are in fault and you did not received lawyer legal notice, then should be filed a case

against you, then prepare for case too.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

You should have accepted the legal notice and replied to the same through Advocate. Never refuse any legal notice. Refusal is deemed served. Without knowing the contents of legal notice there is limited scope to reply.

Prashant Nayak
Advocate, Mumbai
27261 Answers
88 Consultations

4.4 on 5.0

Firslty, there is nothing that you have committed any criminal offence for whcih you may be directed to go under some punishment.

Secondly, you had the option you left it, but yes the bond whcih you might have signed also may create problem for you.

Thirdly, I advice you to first give reply to that notice and ask them to not to issue any such notice in your father name.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1. Was there a notice period prescribed in the contract? If notice period is mentioned then you were bound to adhere to it in letter and spirit. You ought to have either served the notice period or buy it by paying salary equivalent to the notice period.

2. If you have violated the notice period then company can sue you for liquidated damages with interest in the civil court.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Hi,

The refusal to accept the notice may be treated as wilful neglect on your part. It is better to take that and send strong reply to them.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Dear Sir,

Whether you accept legal notice or not the company may file a suit for recovery of bond amount. However it is better for you to receive legal notice and send fitting reply notice stating that Section 27 of Contract act does not allow for such bonds. The law says that the employer is entitled for only the actual amount spent by them on training of employee, if exist is premature.

==================================

Is notice period (3 months) legal in India?

It can be easily understood that the ambit and scope of section 23 of the Indian contract act 1872, is vast and therefore the applicability of its provisions is subject to scrutiny by the court of the consideration and object of an agreement and the agreement itself.

Therefore, in order to bring a case within the purview of section 23, it is necessary to show that the object of the agreement or consideration of the agreement or the agreement itself is unlawful.

I'll keep it short and simple:

Either party - employer or employee can terminate the contract by giving sufficient notice or compensating accordingly. In such a case, employer is bound to release the employee without any fuss, assuming that either of the above two conditions are met.

So, if your organization doesn't allow you to buyout the notice period, please feel free to knock on the doors of the Indian judiciary.

The following key issues should be highlighted:

• A 30 to 90-day notice period applies in order to terminate ‘workmen’ (as defined in the Industrial Disputes Act, 1947) – that is, employees whose role is not primarily supervisory, administrative or managerial) for convenience, with 15 days’ pay due for every year worked. In the case of manufacturing units, plantations and mines with 100 or more workmen, termination for convenience requires prior government approval; in other sectors, it requires only government notification.

• Termination for cause does not include non-performance – it includes only behaviour which qualifies as misconduct.

• The ‘last in, first out’ principle requires that the employer first terminate for convenience the last people to join the organisation in the same role. However, this requirement can be contracted out of. When hiring for the same role, workmen who were terminated for convenience should be given the opportunity to re-join the company.

• State laws generally provide for about 15 days of earned/regular leave a year. Employees also benefit from up to 10 days of sick leave and a possible 10 additional days of ‘casual leave’. This is generally more than what most organisations would ideally like to provide.

• Most state laws provide for ‘casual leave’ – the employee can opt not to come to work that day without applying for leave in advance. Many organisations find this disruptive.

• Most state laws restrict women from working at night; if women are to work at night, specific approval must be obtained. This exemption is granted only to limited business sectors (eg, IT sector). Further, the employer must offer door-to-door transport and meet some security-related requirements.

• Most state laws prescribe overtime for any hours worked beyond 48 hours in a week. However, this is seldom observed.

• Indian law regulates and in some cases prohibits the use of contract workers. To engage contract workers, the contractor must hold a licence and the employer must be registered as a ‘principal employer’.

• Non-compete agreements are not enforceable under Indian law, while non-solicitation clauses can be enforced only in limited ways.

• While the ‘work for hire’ principle applies under the Indian copyright regime, it does not apply under the Indian patent regime; employees must thus provide formal assignments.

• Indian laws require employers to maintain a plethora of registers and notices. Compliance with such requirements is difficult and full compliance is rare.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

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