Dear All,
Recently I got interesting judicial pronoucement of breach of bond, according which such agreement are not against public policy and not void.Please check the attachmnet.Further, I Like to share following view with you:-
Whether particular service contract is valid or not is totally depends upon the terms and conditions contained therein, the manner in which it is drafted subject to various provisions of law.
Suppose if an agreement of training contained a provision that employee has to serve the company for 2 year after completeion of training abroad and in case if he leave before said period he is liable to pay damages to the employer say equal to 6 months salary .....is not illegal/void.
In various judicial reveiw court held that such restriction are not treated as 'restrain in trade' hence not violative section 23/27 of contract act nor fundamental right u/a 19.
But drafting must be done carefully and restriction must not for post-employement period and it must be genuine to receover cost of training.
Employee is free to leave but they have to compensate the company,,,in my opinion such employee can not be allow to take laddu in both hands..means taking fruits of training, joining competitor and levaing it old employer in the mid of business set up..it is totaly immoral and unethical/non professional attitude.Ya if they want to leave they can leave but pay cost of training.
Please check the attached article and judicial prouncement.
SUBMITTED FOR YOUR KIND VIEWS, pls.
rEGARDS
aMIT kishore singh
From India, Delhi
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7Recently I got interesting judicial pronoucement of breach of bond, according which such agreement are not against public policy and not void.Please check the attachmnet.Further, I Like to share following view with you:-
Whether particular service contract is valid or not is totally depends upon the terms and conditions contained therein, the manner in which it is drafted subject to various provisions of law.
Suppose if an agreement of training contained a provision that employee has to serve the company for 2 year after completeion of training abroad and in case if he leave before said period he is liable to pay damages to the employer say equal to 6 months salary .....is not illegal/void.
In various judicial reveiw court held that such restriction are not treated as 'restrain in trade' hence not violative section 23/27 of contract act nor fundamental right u/a 19.
But drafting must be done carefully and restriction must not for post-employement period and it must be genuine to receover cost of training.
Employee is free to leave but they have to compensate the company,,,in my opinion such employee can not be allow to take laddu in both hands..means taking fruits of training, joining competitor and levaing it old employer in the mid of business set up..it is totaly immoral and unethical/non professional attitude.Ya if they want to leave they can leave but pay cost of training.
Please check the attached article and judicial prouncement.
SUBMITTED FOR YOUR KIND VIEWS, pls.
rEGARDS
aMIT kishore singh
From India, Delhi
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Hi,
What if a company forces an employee to sign a bond in the name of training and requires them to work on-site for more than 10 hours, profiting by invoicing the client? Is this a clear exploitation of the training program to extract routine work from employees? Many companies have misused this legal condition to recover dues under the guise of specialized training.
Please share your thoughts on this matter.
From India
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What if a company forces an employee to sign a bond in the name of training and requires them to work on-site for more than 10 hours, profiting by invoicing the client? Is this a clear exploitation of the training program to extract routine work from employees? Many companies have misused this legal condition to recover dues under the guise of specialized training.
Please share your thoughts on this matter.
From India
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