Dear Sir/Madam,
I need a advice! If anyone who have a bond with his company for the period of 5 years for the sum amount 20L and within the period, that person got a chance to work with some another big company. Then, what will be legal procedure to break that bond or what will be the way, so that person doesn't need to pay money even without serving the period as specified in bond to smoothly come-out from that company.
I will be highly thankful, if you could advice in regard to above mentioned subject.
Thanks & Regards
Vikash
From India, Mumbai
I need a advice! If anyone who have a bond with his company for the period of 5 years for the sum amount 20L and within the period, that person got a chance to work with some another big company. Then, what will be legal procedure to break that bond or what will be the way, so that person doesn't need to pay money even without serving the period as specified in bond to smoothly come-out from that company.
I will be highly thankful, if you could advice in regard to above mentioned subject.
Thanks & Regards
Vikash
From India, Mumbai
Hi,
In India Employment bond is considering legal.
An agreement enforcable by law is a contract. As per Sec 10 of the Indian contract Act, 1872
all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object.
Section 14 of the Indian Contract Act, 1872 defines free consent.
"Free consent" defined.-Consent is said to be free when it is
not caused by-
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16, or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21and 22.
Suppose if a employee is given an offer letter and he accepts it. Once he joins, if the employer asks him to sign a bond for 1 lakh rupees to continue in employment, then the court may view this as an undue influence since the employee has resigned from his previous job and he has no other option but to agree to the terms and conditions of the employer. So a lot of these things depends on the facts and circumstances of the case.
A Employment agreement is like a standard contract, where the employee can either accept the offer or not . Unless an Employee proves that the employment bond is obtained without his free consent, the bond can be enforced provided the terms are reasonable and not contrary to the public policy.
Better to come out with mutual understanding with employer.
From India, Mumbai
427In India Employment bond is considering legal.
An agreement enforcable by law is a contract. As per Sec 10 of the Indian contract Act, 1872
all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object.
Section 14 of the Indian Contract Act, 1872 defines free consent.
"Free consent" defined.-Consent is said to be free when it is
not caused by-
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16, or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21and 22.
Suppose if a employee is given an offer letter and he accepts it. Once he joins, if the employer asks him to sign a bond for 1 lakh rupees to continue in employment, then the court may view this as an undue influence since the employee has resigned from his previous job and he has no other option but to agree to the terms and conditions of the employer. So a lot of these things depends on the facts and circumstances of the case.
A Employment agreement is like a standard contract, where the employee can either accept the offer or not . Unless an Employee proves that the employment bond is obtained without his free consent, the bond can be enforced provided the terms are reasonable and not contrary to the public policy.
Better to come out with mutual understanding with employer.
From India, Mumbai
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