Dear All

I have just joined a company 15 days back. They told me that I will have to sign a Service Contract of 2 years and cannot join a competitor in that span.

After two days of joining they brought a backdated 50 rupees Stamp paper and made me sign a contract which stated that I cannot leave the company on any grounds except defined medical grounds.

If I leave during that period I will have to pay two years of CTC. I am in operations and dont require any kind of training plus the Stamp Paper in use was dated 20 days back from my date of joining. My profile that they promised has not been given and the work load because of this signing has been increased manifold. I have been made to work from 8 to 12.

My query is that in this clause only the company has the right to terminate and I don't have the right to resign. I was not offered anything in return for being faithful to the company.Further if I resign due to work pressure and further join any other job would I be under Litigation for the future. Does a normal citizen of India challenge and win against these big Multinationals ???? Please help and advise

From India, Calcutta
Dear Friends,

Now a days lot of queries are coming on the above subject. Unable to understand that how can somebody gets your signature on a paper forcefully without your acceptance, can you sign on an asset transfer paper of yours to somebody, no no then how you have signed on the agreement paper.

At the time of joining it was rosy and you accepted every thing and signed, how you can sign on a paper with out taking time to read, understand and specifically on a paper where your personal interests & rights are been affected.

Employers are doing the back gorund verification and doing all sorts of enquiries and why not you people don't do it. It is very surprise that with in a span of 15days you are feeling unconfortable and thinking are leaving.

The agreement is very vague and against the interests of the employees better to identify some leading advocate who is wellversed with labour laws and proceed. I expect that atleast you don't repeat similar mistake in your future assignments.

Regards - kamesh

From India, Hyderabad
Sub- Bonds- service contract

when an employer offers a post with ceratian terms and conditions and you have accepted it for ceratian consideration(salary/pacakage) in writing under your signature, a contract has come into existence within the meaning of sec.2(h) of the Indian Contarct Act 1872. Such contact is binding on both the parties and is enforceable under Sec.10 of the said Act.Howevr every contarct cannot be a valid contract. A contract obtained under coercion or misrepresentation will be void as it suffres from the lack of an essential ingredient to validate a contract under the Act namely 'consensus ad idem', meaning meeting of minds. In this case, there does not appear to be meeting of minds.

However, there cannot be any contract preventing you from joining any othe company after you resign from the prsent company, as it is opposed to Sec.27 of the Indian Contract Act. Therefore you have every right to resign. But if you want to leave the service, you have to pay two years CTC to the company. it does not appear to be notice pay but in the nature of summary damages which appears to be punitive. The courts have right to examine the adequacy of any such clause.Any how, try to settle the issue amicably with HR on the issue of notice pay.


HR & Labour Law consultant

Chipinbiz Consultancy. Pvt.Ltd


From India, Mumbai
Thank You Mr Kamesh and Mr Sai.
Please understand that after I joined the company I did not have a choice to say them NO as I did not have any other Job in Hand. The Stamp Paper that they made me sign was given to me after two days of employment neither did I know that I will be given such a Tedious and Demanding Job.
The only Query is that: As I dont have any training expenditure can the company sue me as my appointment letter states One month of Notice period, plus the company is not giving me any thing in return for this fixed tenure.
Can the company challenge two contradictory Documents(Appointment letter and Stamp paper) of the same date with different clauses in Court. Please advise me to come out of this soup.

From India, Calcutta

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