• Breach of contract

Hello,

I was working as trainee engineer in an organization (i.e ABC) & they have bond for 2 years & 50k. They were reducing amount of 2k per month from my salary. I was not happy with work profile & work culture there. I work there for 5 months and resigned serving notice period of 26days instead of 30 days. Now they have my payment of 10k for which am not worried. I got another job and am working happily in new company. 

Now previous organization(ABC) is asking for bond amount. They are sending me mails. What should I do???

FYI, I have not used another signature in bond & appointment letter which is different than my gov documents
Asked 3 years ago in Labour

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7 Answers

It is not possible to deny the bond on the basis of different signature. As you have serviced notice period of 26 days and they deducted 10 K from you salary. The employee has exercises his right under the bond now he cannot against ask you for bond amount. Give a proper reply on above lines to employer. You are not liable for bond amount.

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

1) you are liable to pay bond amount if company has spent any money on your training 

 

2)reply to email that no money has been spent on your training 

Ajay Sethi
Advocate, Mumbai
99786 Answers
8145 Consultations

From the facts narrated by you, it appears that your former employer is legally entitled to the bond amount. If you ignore the e-mails, they may send you a legal notice and sue you for breach of contract, besides informing your current employer. It is better to sort out the issue with them before things hot up.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

Dear Client,

As per the facts which have been provided, go and talk to your HR. Negotiate with them, pay them and leave to avoid legal matters.

Thank you.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

If you have executed an employment bond then you may have to comply with the conditions or else it would be treated as breach of agreement. As you have received the legal notice, you have to issue a reply notice denying their allegations if they are false.

The Indian courts are of the opinion that in the event of a breach of contract by the employee, the employer shall be allowed to recuperate damages only if the employer bore a considerable amount of expenditure. Indian law makes it compulsory the employment bonds be “reasonable” in order to be legitimate.

However under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation.

T Kalaiselvan
Advocate, Vellore
89988 Answers
2493 Consultations

Just wait and watch. If they file any false case counter the same. You can also reply to the notice if sent 

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Except, recovery of the said amount, company cannot harm you for the same

- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.

- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.

- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

- If, you have already worked for the notice period , then no need of worry, send a reply or legal notice of his mail that it not applied upon you. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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