Business Development, Employee Relations,
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My son had entered into an agreement to work for a placement training company to serve the company for a period of two years.
This company had sent my son everywhere by bus and not provided adequate rest and asked him to work continuously without rest and because of that he ended up with spinal column problem and doctors advised him not to strain like this and advised him for a change of job. Necessary medical certificate from the doctor along with leave application is submitted to the company. The company had not made any effort to help my son for his treatment and always insisting him to join back otherwise they will take the legal action against him. Also they were keeping his certificates and he got the same later.
Can I file a case against the company for threatening my son and also not helped him for his treatment and in humane treatment. This agreement is totally one sided.
Please advise.
4th May 2014 From India, Madras
Rather ask your son to have a discussion with senior HR first. Why to fight and send legal notices at first moment.
Try to explain them in a formal way about the issues.
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4th May 2014 From India, Mumbai
Bonds are not valid in India as per many court judgements. Pon
4th May 2014 From India, Lucknow
hi Jn,
Yes, please go ahead and send a legal notice to company through a solicitor. As you already said, threatening an employee to come to work because there is bond itself is a "strong ground" to nullify the bond. The bond was to work and not to slave and willingly hurt one physical health. Besides, as rightly pointed out "Bond" in India has been thwarted down by many courts in past.
Besides, Bonds are meant to be one sided. Why did you and your son ever signed a bond. I fail to understand, even after so many cases candidates and parent still fall to this one sided bond papers.
"MY EARNEST ADVISE TO ALL CANDIDATES, DO NOT SIGN ANY BOND. BUT IF YOU REALLY HAVE TO; HAVE IT CROSS CHECKED BY A SOLICITOR". Its a worthwhile to pay Rs500-1000 for an legal advise than to keep fighting your stress and mental torture later for you and for your parents.
4th May 2014 From Saudi Arabia, Riyadh
I have not signed the bond or agreement and it is done by son .
The company also deducted some money as a caution deposit and later they had given and by this they had contributed less towards PF too.
Thanks a lot for your valuable advise and should I have to send a legal notice or ask my son to do that. Can we ask the company to compensate for the treatment and earning loss because of the sickness.
Please advise.
Thanks and Regards
J Narayanan
4th May 2014 From India, Madras
Yes, ofcourse Narayanan. Solicitor will be best person to advise on this. Ukmitra
4th May 2014 From Saudi Arabia, Riyadh
Dear Mr Narayanan,

While it has correctly been pointed out that Bonds for employees are not legally valid / enforceable in India, I notice that at no point in your postings have you used the term "employee".

You have made reference to

- An agreement that was signed by your son and not to a letter of appointment being issued to him;

- A term of engagement was for two years, which is not a common approach for companies employing people.

It would appear that your son was retained by the organisation as a contractual worker and not as an employee.

Two observations:

1. If the nature of engagement was contractual then an employer - employee relationship does not exist. For violation of the covenants of the contractual agreement, your son can be held liable and taken to court for Breach of Contract.

2. If the nature of engagement was indeed employment and not contractual, then the terms of employment would normally have been specified in the employment letter including nature of duties and the expectation about how they are to be fulfilled. Also, most organisations do not reimburse employees for unlimited amounts in case of medical treatment. Usually the organisation provides an amount as reimbursement (varies from company to company and usually as a goodwill gesture) while the rest is covered by a Group Medical Insurance taken out by the employer. Even these have limits up to which claims can be defrayed.

I hope that this would enable you to take an appropriate decision whether or not to proceed legally.


Raju Bhatnagar
6th May 2014 From India, Bangalore
In my openion, it would be incorrect to say that employment bonds are not enforceable in India.

In view of recent judgements by various Indian courts, employment bonds may be considered to be reasonable only if they are necessary to protect the interests of the employer. However, the restrains stipulated upon the employee in his employment agreement should be "reasonable" and "necessary" to safeguard the interests of the employer or else the validity of the bond is in question.

The employees are always free to decide their employment and they cannot be compelled to work for any employer by enforcing the employment bond. The court can; however,

1. issue an order restricting the employment of the employee only if the said action is deemed necessary to safeguard the trade secrets/proprietary interest of the employer; or

2. issue an order for compensation amount (bond amount on reducing basis) in case the employer had paid some exceptional amount on the developement/training of the employee.

In the event of breach of contract by the employee, the only remedy available to the employer is to obtain a reasonable compensation amount. The compensation amount awarded shall be based upon the actual loss incurred by the employer by such breach.

You may refer these judgements for more details:

Sicpa India Limited v Shri Manas Pratim Deb

Satyam Computers v Leela Ravichander

Do let me know in case it dosen't answers your question.


6th May 2014 From India, Delhi
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