Hi,
We are a small sized IT company with 50 people in strength. While recruiting new employees we ensure that they sign a minimum 1 year employment agreement with us. This agreement is on plain white paper (not company letter head, not bond paper) and we make them sign their initials on each page and their full signature, left hand thumb print on the last page.
Today, two of our employees, who have served 7 months of their agreement have told that they want to leave the company. I told them that they are expected to serve the minimum 12 month contract as they agreed when they joined. However, they do not intend to stay for that long.
What are the options that I have.
- Is the plain paper employment agreement a valid legal document?
- Can I not give them the work experience certificate?
- When their new company calls me for a background check, what all can I tell them?
Thanks for your help in advance experts.
From India, Hyderabad
We are a small sized IT company with 50 people in strength. While recruiting new employees we ensure that they sign a minimum 1 year employment agreement with us. This agreement is on plain white paper (not company letter head, not bond paper) and we make them sign their initials on each page and their full signature, left hand thumb print on the last page.
Today, two of our employees, who have served 7 months of their agreement have told that they want to leave the company. I told them that they are expected to serve the minimum 12 month contract as they agreed when they joined. However, they do not intend to stay for that long.
What are the options that I have.
- Is the plain paper employment agreement a valid legal document?
- Can I not give them the work experience certificate?
- When their new company calls me for a background check, what all can I tell them?
Thanks for your help in advance experts.
From India, Hyderabad
Contract of employment or appointment order is a document which shows what all are the terms of appointment. It is in fact a legal document which tell us about our relationship with employee. As such, a letter of appointment duly acknowledged by the employee will be a legal document showing a contract with an offer by the employer and acceptance by the employee irrespective of the fact whether it is registered or is prepared under the official letter head of the company. But it is not necessary that all terms in the letter should be legally binding on either party. In otherwords, there should not be any condition which is illegal or which circumvents general laws of the land. A contract of employment which prevents his fundamental right of taking up any employment of his choice itself is void. It is not because it is on a plain paper but because it lacks legality. Therefore, you can not take any legal action against the employee who left before completing the prefixed term of one year.
Secondly, you can withhold the service certificate. But by doing so, do you really benefit? Thirdly, it is upto you whether or not to give a good reference on a back ground check. Here also, it may not give you anything but at the same time by your good reference the concerned employee may get a lot.
Regards,
Madhu.T.K
From India, Kannur
4193Secondly, you can withhold the service certificate. But by doing so, do you really benefit? Thirdly, it is upto you whether or not to give a good reference on a back ground check. Here also, it may not give you anything but at the same time by your good reference the concerned employee may get a lot.
Regards,
Madhu.T.K
From India, Kannur
Yes, these agreements are legal, because as per contract act even oral agreements are also accepted. The contract act did not provide any kind of formalilty whether agreement be on bond paper or letter head. But in case of certain agreements like partnership, mortages etc you need to be registered before the registrar office of your area.
And as far as about your second quearies, you can not bound some to work only for you,only you can claim for damages and on adjudication you can only recover damages upto the amount which you have had spent on them in acquiring any skill, training etc etc. but not the agreement amount.
And as far as about your second quearies, you can not bound some to work only for you,only you can claim for damages and on adjudication you can only recover damages upto the amount which you have had spent on them in acquiring any skill, training etc etc. but not the agreement amount.
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Employment Agreement.pdf
Employment Agreement.doc