Breach Of Service Agreement - CiteHR
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I am working in a company for past 2 years. I have signed an agreement with company for 3 years for an amount of 4.50 Lakhs which decreases to 4 lakhs at the end of 1 year , 3.5 lakhs at the end of 2 nd year and finally 0 at the 3rd year.Also my father signed as a surety and the agreement states that in case I fail to pay, my dad has to.

Now, the company promised many benefits, one of which is the employer will gain knowledge and help him further his ambitions. This was actually stated and hence is a promise.

Next the company also promised to train me by sending to foreign which it failed to do so..even though it trained me under chinese engineers.

Also the training period is stated as 2 years max, I ve completed more than 2 years now, still the company hasn't recognised me at all.

Finally the real problem is I was put under Chinese Engineers to get trained ( also specified in the contract). But even after 2 years of training I haven't gained sufficient knowledge to perform any duties independently which is also specified. The company has failed to keep its promises and hence I ve decided that it is impeding my growth and no other choice but to leave.

can i challenge the company that since it failed to keep its promises, the contract will be void and I can leave without paying any money?

In case i ve to pay, how far is my father obliged in case i refuse to pay?

Thanks in advance.

The chinese couldn't speak much English and this was really frustrating, Hence without communication how can I learn something?
Also the company doesn't state anything in case it fails to keep its promises. Isn't it portraying the "One sided nature" of the agreement.
In this agreement the Employee can only fail, the Employer can never fail...! How is this justified,?


Perhaps I am stating an unpalatable truth!

You signed the contract in "good faith" and it is usually what everyone says and does.

For last over two years, how many times have you "formally" taken up the matter with your employers about not getting sufficient "training"?

Even educational institutes (claim to) TEACH (train) but how many LEARN in real sense?

Enrichment (of knowledge) has to be a two way process-Teaching and Learning!

As you advance in life the emphasis is greater on LEARNING rather than on TEACHING!

Whatever has prompted you to take this view of the need for "balanced agreements", has prompted you late in time (or perhaps when you need to take a possible escape route from this agreement) for certain personal (selfish) reason.

Based on the information provided by you in the post, I will advise you to honour the contracts you have signed (even if in good faith, trust, ignorance or whatever)

But I an not taking sides, as it were. In fact no opinion should be given by anyone without STUDYING the actual document and stipulations therein.

Regardless, I stand by my conviction that all agreements (verbal or written) have to be honoured and finding faults as after thoughts in an attempt to justify "breaching" the contract is NOT right!

But of course you have a right to take any action you decide and "pay the cost" if you have to! I say this as in our judicial reality (to me) you may even get away unscathed! But that would be a chance and would involve, cost in terms of money, time and (even if you win) the prospective employers tending to avoid a potential employee who could engage the employer in legalities whether for any reason or to suit own convenience despite signing a contract

Suggest you weigh the alternatives and decide!



December 24, 2012


I am not going into the substance side of the contract but only into the technical form of the contract. A contract in order to be valid under the Contract Act 1872, needs to be supported by adequate consideration. You have entered into the contract and accepted the terms of contract in consideartion of the company's promise to provide you training abroad and many other benefits in terms of growrth and knowlege which you claim that you did not recieve because of the communication barriers with Chinese engineers and you also claim that you have not been sent abroad Thus it apears that there is no adquate consideration for the contract from the company side.However, if you expressed your views in writing to the company about the impediments to your growth and gaining knowledge, it would further strenthen your case.Thus the contract may not be a valid one.

You need to engage a corporate lawyer to make out a case and to examine the evidence in suport of you and fight the case legally which may consume your time and money.You need to take a call taking into the factors like 1) how expensive is the litigation and whether it is worth the cost 2) how long the litigation takes palce 30 how strong is th evidence in your favour 4) what can be the immediate relief to you. There is no point serving the company during litigation. It can nether free you from the contract and at the same time, will have strained relations with the company. By the time , the litigation comes to end, you might complete the contarct period also since only one year is left.Therefore the prudent option appears to be to complete the contract and explore other job.



Dear Mr Saikumar,
Though I can't say for sure I have expressed it in writing, I have taken up the matter along with my colleague (who also has just the same agreement) to my boss several times , he never acted in our best interests. Even though he verbally acknowledged that we are facing problems with Chinese and understood it, he refuses to take pro-active action and solve the problem, and procrastinates it like this is normal and you have to be patient.
But isn't it hindering my professional growth? Why should I work for a company that has no care for its employees ?
Also Mr Samvedan,
I am not a stupid person, I am a topper in my class and a scholarship holder. I understand that no one TEACHES in professional world and we have LEARN ourselves. But the circumstances make it impossible to LEARN, as LEARNING also involves communication. Whatever knowledge I have gained in the past 2 years is due to my own competence.

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