Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant
Legal And Compliance Consultant
Hr Manager

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I had been working with a medical devices startup company and signed a service agreement of 3 lacs for 2 years for training to be provided along with joining for 2 months. The training was internal and no tutor was hired externally I did not get any certification not any study material for training given. Also the training was either designed by us the employees or from the previous job of my manager which was also confidential still he disclosed it as a part of training without the consent of his previous company.

I left the organisation after eleven months. While leaving i stated i am joining other company which is in different line of work, now they have sent me a advocate notice saying I should pay 3 lacs within 10 days plus are saying I gave false reason for resignation and joined their competitor (but I have our last discussion on audio clip where they can be heard clearly listening and asking questions about the company I am supposed to join). I knew the people are with bad intentions so took this measure as precaution can it help me and What should I do now?

From India, Kolhapur
Not clear about the bond conditions. From your query it is learnt that you entered into a bond with the Company for Rs.3 lakhs agreeing to serve the Company for 2 years. Since you violated the bond, you are bound to pay Rs.2 lakhs as liquidated damages. As far as certification etc, was it a condition in the service agreement? If so the service agreement is to be interpreted in your case. Otherwise u have to pay the amount.
Mohan Kumar
PH: 8921883907

From India, Bangalore
Any employment bond would be valid only when it contains reasonable restrictions for its breach by the employee. Otherwise it would be void as per Sec.27 of the Indian Contract Act,1872. Moreover, as per the Bonded Labour System (ABOLITION )Act,1976 no person shall be required to stay for a particular tenure at a company out of compulsion. However, any employment contract with negative covenants as to requiring an employee to serve the employer for a specified period or to pay damages in case of breach would be valid only if the employer invested resources on imparting personnel training or skill enhancement of the employee concerned. At the same time, the liquidated damages claimed by the employer from the employee for such breach can not be in the nature of penalty as per the rulings of the Supreme Court of India in its judgments in Sir Chunilal vs Mehta & Co., vs The Century Spinning [ 1962 AIR 1314 ] and Fateh Chand vs Balkishan Das [ AIR 1963 SC 1405 ] respectively. If the inputs furnished in the anonymous post are true and correct, the Company can not claim a liquidated damages of Rs 3 lakh. It may be a mere threat. So, better engage an experienced counsel and send reply accordingly.
From India, Salem
agree with Mr Umakanthan M, you are advised to consult one prudent lawyer working in the field along with notice and relevant documents and make reply to the notice.
for further clarifications or any legal matter you can mail/whatsapp me.

Dear Friend,
Dont worry as previous employer cant do any thing. You were not a bonded labour. Legally you are safe but you cant stop your previous company from creating nuisance. So hire a good advocate who handles service cases & reply the notice.
With Warm Regards
Bharat Gera
HR Consultant

From India, Thane
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