Dear Seniors,
Greetings for the day.
I have one friend who was working with a manufacturing company in HR. Recently, he got terminated, with the company stating it was due to poor performance. He is under a Bond (a 3-year agreement) that includes clauses stating he must pay a percentage of his CTC if he resigns before completing the 3 years. The company provided him with 1 month's salary as notice pay (the notice period being 1 month). I have some questions:
1) Can he defend his termination in court?
2) Can he seek additional compensation from the company for breach of contract?
3) Within how many days is the company liable to provide his Full & Final Settlement amount?
Please reply.
Thanks in Advance.
From India, Pune
Acknowledge(0)
Amend(0)
17Greetings for the day.
I have one friend who was working with a manufacturing company in HR. Recently, he got terminated, with the company stating it was due to poor performance. He is under a Bond (a 3-year agreement) that includes clauses stating he must pay a percentage of his CTC if he resigns before completing the 3 years. The company provided him with 1 month's salary as notice pay (the notice period being 1 month). I have some questions:
1) Can he defend his termination in court?
2) Can he seek additional compensation from the company for breach of contract?
3) Within how many days is the company liable to provide his Full & Final Settlement amount?
Please reply.
Thanks in Advance.
From India, Pune
Acknowledge(0)Amend(0)
Hi,
The company needs to prove that the terminated employee's performance was bad. They need to have evidence/proof regarding the low performance. If they do not have the proof, the employee can challenge the same, i.e., he can challenge the termination.
Regards,
Rajeev Dixit
From India, Bangalore
Acknowledge(0)Amend(0)
The company needs to prove that the terminated employee's performance was bad. They need to have evidence/proof regarding the low performance. If they do not have the proof, the employee can challenge the same, i.e., he can challenge the termination.
Regards,
Rajeev Dixit
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Sandeep,
Based on your query, please find my answers below:
1. Your friend can file a case in court. However, if the company proves to the court about the performance of your friend, then he loses the case.
2. I also suggest that you advise your friend to reread the agreement/bond. There must be a clause in the agreement/bond which states that either party can terminate the contract by giving 1-2 months' notice, and the liquidated damages mentioned in the agreement also have to be paid. In case the company terminates the employee, the company has to inform the employee one month in advance and a certain amount has to be paid to the employee. If the company terminates the employee during the tenure of the bond, then the company has to pay all the dues applicable to the employee, including the liquidated damages (if mentioned in any clause of the agreement).
3. The full and final settlement will be paid to your friend as per the company's policy. Every company has its own policy for settling accounts. Some companies take one month, while some take one week or maybe two to three weeks.
I hope this helps. Let me know if you need any further clarification.
From India, Mumbai
Acknowledge(0)Amend(0)
Based on your query, please find my answers below:
1. Your friend can file a case in court. However, if the company proves to the court about the performance of your friend, then he loses the case.
2. I also suggest that you advise your friend to reread the agreement/bond. There must be a clause in the agreement/bond which states that either party can terminate the contract by giving 1-2 months' notice, and the liquidated damages mentioned in the agreement also have to be paid. In case the company terminates the employee, the company has to inform the employee one month in advance and a certain amount has to be paid to the employee. If the company terminates the employee during the tenure of the bond, then the company has to pay all the dues applicable to the employee, including the liquidated damages (if mentioned in any clause of the agreement).
3. The full and final settlement will be paid to your friend as per the company's policy. Every company has its own policy for settling accounts. Some companies take one month, while some take one week or maybe two to three weeks.
I hope this helps. Let me know if you need any further clarification.
From India, Mumbai
Acknowledge(0)Amend(0)
Firstly, any company prepares a legal agreement stating that a person breaching the contract has to pay a percentage of damages, which need not be vice versa.
Since the company has clearly mentioned that in case of termination, it will pay one month of salary and did so, you can't claim any more amount from them.
You can file a suit against the company if you really think that the termination is not justifiable.
Greetings for the day,
I have a friend who was working with a manufacturing company in HR. Recently, he got terminated, with the company stating it was due to poor performance. He is under a 3-year bond agreement. The bond includes clauses stating that if he resigns before completing the 3 years after joining, he will be liable to pay a percentage of his CTC. The company provided him with one month's salary as notice pay (the notice period is one month). Here, I have some questions:
1) Can he defend his termination in court?
2) Can he claim more money from the company for breaching the contract?
3) How many days is the company liable to provide his Full & Final Settlement amount?
Please reply.
Thanks in Advance.
From India, Bangalore
Acknowledge(0)Amend(0)
Since the company has clearly mentioned that in case of termination, it will pay one month of salary and did so, you can't claim any more amount from them.
You can file a suit against the company if you really think that the termination is not justifiable.
Greetings for the day,
I have a friend who was working with a manufacturing company in HR. Recently, he got terminated, with the company stating it was due to poor performance. He is under a 3-year bond agreement. The bond includes clauses stating that if he resigns before completing the 3 years after joining, he will be liable to pay a percentage of his CTC. The company provided him with one month's salary as notice pay (the notice period is one month). Here, I have some questions:
1) Can he defend his termination in court?
2) Can he claim more money from the company for breaching the contract?
3) How many days is the company liable to provide his Full & Final Settlement amount?
Please reply.
Thanks in Advance.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Sandeep,
I believe that courts in our country are for everyone and are meant for justice only. If a person or employee feels that they are unduly exploited or victimized, they can approach the court to seek the justice due to them. There are no second opinions on that. However, they can seek help from legal experts before initiating any proceedings.
Best of luck.
From India, Mumbai
Acknowledge(0)Amend(0)
I believe that courts in our country are for everyone and are meant for justice only. If a person or employee feels that they are unduly exploited or victimized, they can approach the court to seek the justice due to them. There are no second opinions on that. However, they can seek help from legal experts before initiating any proceedings.
Best of luck.
From India, Mumbai
Acknowledge(0)Amend(0)
There are two distinct parts to this case:
1. The termination on poor performance. Every organization has a right to weed out the dead wood. For this, of course, some procedure needs to be followed (Counseling: Written warnings; low marks in appraisals, etc.). I do not think that any company worth its salt would have short-circuited these steps. Hence going to court may not be a very wise course of action.
2. The Bond: I have had numerous opportunities to study these bonds. These are one-sided and heavily loaded in favor of the employer, hence voidable in Indian law. Even if a contract is not one-sided, it cannot give a guarantee of employment to poor performers or people with dubious conduct. Hence going to court to use the bond to get extra benefits does not seem to be wise.
U K Munshi
Wg Cdr (Retd)
GM HR & Admin
Rajput Properties And Developers
From India, Delhi
Acknowledge(1)Amend(0)
1. The termination on poor performance. Every organization has a right to weed out the dead wood. For this, of course, some procedure needs to be followed (Counseling: Written warnings; low marks in appraisals, etc.). I do not think that any company worth its salt would have short-circuited these steps. Hence going to court may not be a very wise course of action.
2. The Bond: I have had numerous opportunities to study these bonds. These are one-sided and heavily loaded in favor of the employer, hence voidable in Indian law. Even if a contract is not one-sided, it cannot give a guarantee of employment to poor performers or people with dubious conduct. Hence going to court to use the bond to get extra benefits does not seem to be wise.
U K Munshi
Wg Cdr (Retd)
GM HR & Admin
Rajput Properties And Developers
From India, Delhi
Acknowledge(1)Amend(0)
Hello Sandeep,
You haven't clarified/confirmed regarding the process adopted/followed by the company in terminating your friend. Please confirm in detail regarding this aspect of the case. A lot could depend on this - if this can be taken up legally.
Regarding the validity of the bond, U K Munshi is correct. This issue has been discussed at length many times on CiteHR before.
However, please note that there are many ifs and buts regarding this aspect - for example, has your friend received any training when he joined?
Regards,
TS
From India, Hyderabad
Acknowledge(0)Amend(0)
You haven't clarified/confirmed regarding the process adopted/followed by the company in terminating your friend. Please confirm in detail regarding this aspect of the case. A lot could depend on this - if this can be taken up legally.
Regarding the validity of the bond, U K Munshi is correct. This issue has been discussed at length many times on CiteHR before.
However, please note that there are many ifs and buts regarding this aspect - for example, has your friend received any training when he joined?
Regards,
TS
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Taj Sateesh, (Hope I have got your name correct)
Even if he has been trained, it would be the loss to the company and not to the employee. Hence, going to court will not benefit the individual.
U. K. Munshi
From India, Delhi
Acknowledge(0)Amend(0)
Even if he has been trained, it would be the loss to the company and not to the employee. Hence, going to court will not benefit the individual.
U. K. Munshi
From India, Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
CiteHR.AI
(Fact Checked)-The reply provided is correct. It accurately states that the terminated employee can challenge the termination if the company fails to provide evidence of poor performance. (1 Acknowledge point)