Dear all,
My friend worked with a company for 4 years and then was sent to do an MBA sponsored by the company. There was no bond signed during that period or before joining the college. Only email exchanges took place about the program and a three-year employment bond after the completion of the MBA. Now he wants to leave the company as he feels he is being exploited on the grounds of the bond. Remember, he has never signed any paper of such nature physically.
Can he be sued by the company as the company is now asking him to pay two years' salary and the full fees paid by the company as compensation?
Please help with legal facts and not personal advice.
DK
From India, Mumbai
My friend worked with a company for 4 years and then was sent to do an MBA sponsored by the company. There was no bond signed during that period or before joining the college. Only email exchanges took place about the program and a three-year employment bond after the completion of the MBA. Now he wants to leave the company as he feels he is being exploited on the grounds of the bond. Remember, he has never signed any paper of such nature physically.
Can he be sued by the company as the company is now asking him to pay two years' salary and the full fees paid by the company as compensation?
Please help with legal facts and not personal advice.
DK
From India, Mumbai
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Hi,
Now email is also admissible as evidence in court. If you were to go to court, the company would use this email. If the company has outlined all the terms and conditions in that email and your friend responded to the email in a positive manner, then yes, your friend will be obligated to pay the specified amount.
Thanks,
Aakanksha
From India, Delhi
Now email is also admissible as evidence in court. If you were to go to court, the company would use this email. If the company has outlined all the terms and conditions in that email and your friend responded to the email in a positive manner, then yes, your friend will be obligated to pay the specified amount.
Thanks,
Aakanksha
From India, Delhi
Thank you for your reply, but can an email be considered the contract if the details were not mentioned in the email? Additionally, the monetary value was never specified in the email. I was informed that in India, no employer can enforce continued employment.
From India, Mumbai
From India, Mumbai
Agreed with you, but if the company has mentioned that "if you will go with MBA, then you have to serve the company for 4 years," that means your friend was aware of it; otherwise, no one can force you to pay that fee.
Aakanksha
From India, Delhi
Aakanksha
From India, Delhi
Dear Akanksha,
Thank you for your valuable input. Now, how could a company decide the monetary value to be recovered from an employee if nothing is mentioned in the mail? Also, remember that he has served the company for one year, so should that not be taken into account? The entire exchange of emails has taken place on the company's own website, which is controlled by the company itself. What could be the validity of these emails?
Thanks again,
DK
From India, Mumbai
Thank you for your valuable input. Now, how could a company decide the monetary value to be recovered from an employee if nothing is mentioned in the mail? Also, remember that he has served the company for one year, so should that not be taken into account? The entire exchange of emails has taken place on the company's own website, which is controlled by the company itself. What could be the validity of these emails?
Thanks again,
DK
From India, Mumbai
Dear DK,
The email transactions of documents have legal sanctity. In the IT Act 2000, it is categorically mentioned that email-transmitted messages fall under the term "document" and have legal sanctity.
If your friend has sent the acknowledgment or acceptance of the same, then he is liable and accountable for fulfilling the bond conditions.
The bond itself must have a clause specifying the bond period, bond amount, and the conditions for the breach of the bond.
Your friend cannot escape or break the employment rules. He can be sued by the company.
NOTE: In case your friend feels that (1) he is entrusted with responsibilities that do not fall under the purview of his profile, (2) made to work beyond acceptable working hours, etc., then he also has counseling and legal recourse for his problem.
Hema
From India, Nagpur
3The email transactions of documents have legal sanctity. In the IT Act 2000, it is categorically mentioned that email-transmitted messages fall under the term "document" and have legal sanctity.
If your friend has sent the acknowledgment or acceptance of the same, then he is liable and accountable for fulfilling the bond conditions.
The bond itself must have a clause specifying the bond period, bond amount, and the conditions for the breach of the bond.
Your friend cannot escape or break the employment rules. He can be sued by the company.
NOTE: In case your friend feels that (1) he is entrusted with responsibilities that do not fall under the purview of his profile, (2) made to work beyond acceptable working hours, etc., then he also has counseling and legal recourse for his problem.
Hema
From India, Nagpur
Thank you for the information provided. It was very useful. Additionally, my friend is relieved as the email did not mention anything about a breach of bond, the amount of compensation, etc. It only stated that three years of work were expected from him, which is what was mentioned in the email.
From India, Mumbai
From India, Mumbai
can anyone tell me ..what could be the intensity of penalty in this kind of cases...is jail term possible in this case?
From India, Mumbai
From India, Mumbai
Its not a criminal offence. He cannot be put in to jail. All a Company can do is to file a civil case for recovery of the amount spent on his MBA course.
From India, Chandigarh
From India, Chandigarh
Dear dkraitafe/All,
Please note my experience on the issue. Even when there is a bond duly executed, the company will be asked to prove the loss that occurred due to the resignation of the employee. Also, all these kinds of bonds are just meant to create pressure at the "back of the mind" of the trainee. Any and all such negative covenants are not easily accepted by the court of law and require proper trials, evidence, and cross-examinations.
It is not a criminal offense to change jobs unless your friend has bad intentions of divulging any secrets or trade-related information to another company or competitors. Everyone has the fundamental right to work and livelihood. Moreover, just relax and read the Indian Contract Act 1872, section 27, which states that agreements in restraint of trade are void.
Addressing your major question: the quantum of damages that can be granted by the court of law will depend on the prayers made by the company and the arguments of the lawyers. At most, only the fees paid for the course (MBA) can be granted.
Let me know the jurisdiction, and I will advise you on the best lawyer as well as provide citations to rely upon.
Best wishes to your friend for his next assignment.
Marine lawyer
From India, Mumbai
Please note my experience on the issue. Even when there is a bond duly executed, the company will be asked to prove the loss that occurred due to the resignation of the employee. Also, all these kinds of bonds are just meant to create pressure at the "back of the mind" of the trainee. Any and all such negative covenants are not easily accepted by the court of law and require proper trials, evidence, and cross-examinations.
It is not a criminal offense to change jobs unless your friend has bad intentions of divulging any secrets or trade-related information to another company or competitors. Everyone has the fundamental right to work and livelihood. Moreover, just relax and read the Indian Contract Act 1872, section 27, which states that agreements in restraint of trade are void.
Addressing your major question: the quantum of damages that can be granted by the court of law will depend on the prayers made by the company and the arguments of the lawyers. At most, only the fees paid for the course (MBA) can be granted.
Let me know the jurisdiction, and I will advise you on the best lawyer as well as provide citations to rely upon.
Best wishes to your friend for his next assignment.
Marine lawyer
From India, Mumbai
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Validity of Bond.pdf
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