Hi all,
Last year (Dec 2005), I joined a company. During the interview, they informed me that the company is a Microsoft Office Project Partner. They also mentioned that I would need to sign a 2-year bond and if I were to break this bond before 2 years, I would have to pay Rs. 100,000.
A few days after the interview, I received an email from their HR Manager stating that I was selected for the position of "Lead Software Engineer" with a grade of 5. They have a grading system ranging from 1 (top grade) to 10 (lowest grade).
When I went for joining after resigning from my current job, I was given a joining letter. However, in this letter, I was assigned grade 5.5 and the post of "Sr. Software Engineer." The cost of breaking the bond was stated to be 1.5 times the total salary drawn. It was clear that there was a discrepancy between what was discussed during the interview and the actual job offer.
Upon discussing this with the HR personnel, they assured me that they would rectify the errors. However, over time, it became apparent that the company was not a "Microsoft Office Project Partner," and the actual take-home salary was only 45% of the CTC due to various conditions.
The bond agreement was on a simple A4 paper, and despite the passage of time, the grade, joining letter, and designation were not corrected. As a result, I decided to resign from the company after 10 months (Sep 2006).
Subsequently, they sent a letter to my current employer claiming that Rs. 225,563 was due from me as bond money and refused to issue me a relieving letter and experience letter.
I seek guidance on how to obtain the relieving letter, experience letter, and my September 2006 salary from them.
From India, Jaipur
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Last year (Dec 2005), I joined a company. During the interview, they informed me that the company is a Microsoft Office Project Partner. They also mentioned that I would need to sign a 2-year bond and if I were to break this bond before 2 years, I would have to pay Rs. 100,000.
A few days after the interview, I received an email from their HR Manager stating that I was selected for the position of "Lead Software Engineer" with a grade of 5. They have a grading system ranging from 1 (top grade) to 10 (lowest grade).
When I went for joining after resigning from my current job, I was given a joining letter. However, in this letter, I was assigned grade 5.5 and the post of "Sr. Software Engineer." The cost of breaking the bond was stated to be 1.5 times the total salary drawn. It was clear that there was a discrepancy between what was discussed during the interview and the actual job offer.
Upon discussing this with the HR personnel, they assured me that they would rectify the errors. However, over time, it became apparent that the company was not a "Microsoft Office Project Partner," and the actual take-home salary was only 45% of the CTC due to various conditions.
The bond agreement was on a simple A4 paper, and despite the passage of time, the grade, joining letter, and designation were not corrected. As a result, I decided to resign from the company after 10 months (Sep 2006).
Subsequently, they sent a letter to my current employer claiming that Rs. 225,563 was due from me as bond money and refused to issue me a relieving letter and experience letter.
I seek guidance on how to obtain the relieving letter, experience letter, and my September 2006 salary from them.
From India, Jaipur
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Dear Ajit,
Negative covenants in a contract (bond) that restrain you from undertaking employment elsewhere after leaving a job are invalid and in violation of Section 27 of the Indian Contract Act. No court can grant an injunction in such cases based on such agreements. The judgment of the Delhi High Court in American Express Bank Ltd. Vs. Ms. Priya Puri 2006 (110) FLR 1061 protects your rights.
Accordingly, you may advise your employers not to worry about the letter sent by your previous employer.
Regards,
Anand
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Negative covenants in a contract (bond) that restrain you from undertaking employment elsewhere after leaving a job are invalid and in violation of Section 27 of the Indian Contract Act. No court can grant an injunction in such cases based on such agreements. The judgment of the Delhi High Court in American Express Bank Ltd. Vs. Ms. Priya Puri 2006 (110) FLR 1061 protects your rights.
Accordingly, you may advise your employers not to worry about the letter sent by your previous employer.
Regards,
Anand
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Dont do anything. They cant recover money from you. The bond cant be force on you because bonded labour is prohibited in our country.
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Dear All,
Thank you for helping me. My current employer is now satisfied, and my job is going smoothly here. However, I would like to request my September 2006 salary and an experience letter from my previous employer. How should I proceed with this?
Thanks,
Ajit
From India, Jaipur
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Thank you for helping me. My current employer is now satisfied, and my job is going smoothly here. However, I would like to request my September 2006 salary and an experience letter from my previous employer. How should I proceed with this?
Thanks,
Ajit
From India, Jaipur
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf