As already clarified by respected elders, this is not a contract appointment. A condition that in case the candidate leaves before a period of two years, then one has to pay Rs. 1 lakh cannot be stated to be an unconscionable term of employment as such a condition is neither prohibited by law nor is against public policy. Similar clauses exist in other organizations too, probably with a view to make the new employee commit oneself to a long career ahead.
The employment contract was offered to you, and you could either accept or reject, so it cannot be viewed as opposed to the provisions of the Contract Act 1872. The post of Sr Manager/HR is a key post in any organization, and hence imposing such conditions is very critical for the long-term prospect of the organization. However, they could have made this condition clear beforehand, at least to a Senior HR professional.
From India, Mumbai
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1656The employment contract was offered to you, and you could either accept or reject, so it cannot be viewed as opposed to the provisions of the Contract Act 1872. The post of Sr Manager/HR is a key post in any organization, and hence imposing such conditions is very critical for the long-term prospect of the organization. However, they could have made this condition clear beforehand, at least to a Senior HR professional.
From India, Mumbai
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Hi KK,
I will have to disagree with you. Any condition that forces an employee to work for a specific minimum period of time within a particular organization is illegal, unless the company has invested money in training the individual through a formal course (and not just on-the-job training).
This law has been confirmed by the Supreme Court of India, meaning it cannot be overridden by including it in the appointment letter or in any contract. In any case, the contract would be deemed invalid and null from the beginning if it requires the employee to stay for a set period or compensate for leaving early.
If a company desires an employee to work for a longer duration, they must ensure that the work environment is appealing and that the compensation is sufficient to retain the employee within the organization.
From India, Mumbai
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I will have to disagree with you. Any condition that forces an employee to work for a specific minimum period of time within a particular organization is illegal, unless the company has invested money in training the individual through a formal course (and not just on-the-job training).
This law has been confirmed by the Supreme Court of India, meaning it cannot be overridden by including it in the appointment letter or in any contract. In any case, the contract would be deemed invalid and null from the beginning if it requires the employee to stay for a set period or compensate for leaving early.
If a company desires an employee to work for a longer duration, they must ensure that the work environment is appealing and that the compensation is sufficient to retain the employee within the organization.
From India, Mumbai
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Thanks, experts.
I have understood the conditions required for the employer to enforce any contract on employees. However, my case was not under any of these conditions. It was a private firm, and there was no off-the-job training as well. The only reason for them to enforce the contract was the instability of employees. On top of that, they don't even disclose such conditions before releasing offers. Hence, such contracts are always illegal.
From India, Noida
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I have understood the conditions required for the employer to enforce any contract on employees. However, my case was not under any of these conditions. It was a private firm, and there was no off-the-job training as well. The only reason for them to enforce the contract was the instability of employees. On top of that, they don't even disclose such conditions before releasing offers. Hence, such contracts are always illegal.
From India, Noida
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Swati,
I think we are all talking of the same thing from different points of view.
The 'bond' or 'condition' for paying the penalty for leaving before completion of 2 years is illegal in your case.
Therefore, since it is illegal, you need not bother with it. You could continue working, and if you wanted to leave, you could do it because they have no way to enforce the agreement.
On the other hand, your decision not to join because you cannot force this condition on new employees is probably a valid moral decision. Whether the moral decision at the cost of a job makes sense depends on each individual. If I were in your place, I would probably join and look for another job and then leave once I got it, rather than be unemployed. But then again, it depends on whether you desperately needed the money from the job. Not everyone can afford to refuse like you.
Regards,
Saswata Banerjee
From India, Mumbai
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I think we are all talking of the same thing from different points of view.
The 'bond' or 'condition' for paying the penalty for leaving before completion of 2 years is illegal in your case.
Therefore, since it is illegal, you need not bother with it. You could continue working, and if you wanted to leave, you could do it because they have no way to enforce the agreement.
On the other hand, your decision not to join because you cannot force this condition on new employees is probably a valid moral decision. Whether the moral decision at the cost of a job makes sense depends on each individual. If I were in your place, I would probably join and look for another job and then leave once I got it, rather than be unemployed. But then again, it depends on whether you desperately needed the money from the job. Not everyone can afford to refuse like you.
Regards,
Saswata Banerjee
From India, Mumbai
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