My friend worked in a govt owned org. Before joining the company.He signed a bond of 2lakhs(if he dont serve for 3 years). After 12 months of training he was made to signed another bond of 1 lakhs(if he does not serve for 4 years). Why the same person was asked to sign two bonds?Which bond is valid?Now he want to quit the company after working there for one year. So which bond will be applicable to him, the new one or old one? His HR manager emailed him to pay as per old bond . Both bond states that the amount is recoverable because of cost of the training.
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
Hi, Both the Bond is valid but the question here is in which bond management relies.
2. Suppose, Management relies on fist bond then you have to pay on first bond otherwise vica versa.
3. But one thing you must remember the Management has to approach the Court for suit for breach of the Contract and for damages and your friend sufficient opportunity to defend his case.
wrt poimt no 3) He got the relieve letter, but the letter mentions that you have to pay 2 lakhs to the company. Will his next employer will object it? The former employer has said that once you give the money, they will give an acknowledgment on receiving of the money. Why, are they reluctant to issue a new relieve letter without mentioning the bond thing? Can my friend demand a new clean relieve letter after payment of money along with the bond money acknowledging letter?
Hi, You can producing the reliving letter to the new company if they object for the relieving letter then only ask for fresh one and if the company fail to give relieving letter then you have to approach labour department and file the complaint in the Labour department.
Q.So which bond will be applicable to him, the new one or old one?
A. last one bond is valid because according to section 62 of indian contract act when parties to the contract make alteration in the contract by mutual consent then new contract is applicable instead of old contract . it is called novation of contract,
section 62 of indian contract act :- If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed.
he should file a suit for specific performance of contract under specific relief act. and also seek compensation for mental agony.
1) it is necessary to peruse bond signed by you to advice
2) second bond should supersede earlier bond
3) it all depends upon wordings used
4) the company would seek to recover expenses incurred on his training to recover bond amount
In your question your friend signed two bonds . One is before training and second one is after training. Actually what is differences of condenses written in both bonds other than years of serving the company ?
Here the cost of training is recoverable one ,so how much amount of compensation recoverable by the the company will depends up on the cost of the training .Your friend has every right to get the clean relieving letter if he paid the amount .
The company does not want to take any chance by giving you relieving letter without the bond money
Only after you make payment of bond amount would relieving letter be issued to you mentioning receipt of bond amount
The subsequent contract supersedes the earlier one except to the extent the operation of the earlier contract is saved by the subsequent contract. If your friend has resigned in accordance with the contract in existence then he can successfully sue his employer to issue the relieving letter and also settle his dues.
First the employment offer letter is to be seen about the conditions imposed to accept the employment. If the offer letter states that he is bound to serve the company for a period of three years or to pay the compensation as mentioned in the T&C or offer letter, he may have to comply with the conditions he has agreed and signed.
The subsequent bond may be relating to the training imparted to him by the company which would be a strategy to recover the training expenses, so this if he has accepted and signed, the company will decide about the beneficial situation and may waive one bond at its discretion.
However, let the employee get the confirmation about it in writing and after seeing the contents of the letter by the company further legal action can be decided.
He got the relieve letter, but the letter mentions that you have to pay 2 lakhs to the company. Will his next employer will object it? The former employer has said that once you give the money, they will give an acknowledgment on receiving of the money. Why, are they reluctant to issue a new relieve letter without mentioning the bond thing? Can my friend demand a new clean relieve letter after payment of money along with the bond money acknowledging letter?
If your friend is willing and ready to pay the amount demanded by the company let him express his willingness to his company by a written communication sent by registered post with acknowledgment card, stating that he is ready to pay the demand amount by DD or cheque and on receipt of the same he may be issued with an acknowledgment for the receipt as well as a fresh relieving letter or a clearance letter.
Any correspondences with the company may be in writing and a record may be created and secured for future help in case of any litigation.