Can We Legally Pursue Employees Who Break Their Training Bond Agreement?

Dear Seniors,

A company has a system of a two-year bond with its employees who are going to be on the payroll. Previously, the company deputed a few personnel abroad for training and entered into a three-year bond with these employees. Some of the employees have left the company before completing their mandatory three-year period.

Please suggest whether we can initiate any legal action against those employees who have already left. According to the company's policy, there is a procedure to enter into a two-year bond with all employees who are going to work at domestic sites and not going abroad for any training. Please guide me on the legal validity of such a bond.

Regards,

Dear Vijay Shankar,

Yes, you can initiate legal action against employees who breach the employment bond.

Furthermore, these bonds are valid legal documents, duly signed on stamp papers by both the employer and employees.

You can take action against those who leave the organization before the date mentioned in the bond, but the same should be restricted only to the amount spent by you to train those employees. You are not supposed to demand the entire sum stated in the bond but can call on the employee(s) to indemnify the loss caused to you by the employee not working for the bond period. Otherwise, it will be viewed as compelling an employee to serve you under a 'bond,' which is illegal.

Regards,
Madhu.T.K

Request for Assistance with Bond and Relieving Letter

I need your attention here. Actually, I worked for L&T Construction as a trainee for 13 months (from August 2012 to September 2013), but I was in a service bond for 2 years with L&T.

I am in deep need of a Relieving Letter. I had requested and begged them extensively to reduce the bond amount, but they did not agree. I worked there for more than a year, and they did not provide me with any training. I was willing to pay the liquidated damages that the company claimed besides the salary, but they still did not agree. Eventually, under compulsion, I paid the full bond amount of rupees 2 lakh to obtain the relieving letter. However, they have still not provided me with a service certificate.

I earned around 2 lakh 30 thousand, out of which I had to pay 2 lakh to them as a bond amount.

Legal Options for Recovering Bond Amount

I want to know if I can recover some amount from L&T now. Can I file a case against them? L&T did not provide me with anything other than the salary, and the entire salary I earned was paid back to them.

Please suggest and advise me. Is there any legal procedure through which I can recover a certain amount from L&T?

Regards,
IKY

Since the employer did not provide training as per the bond and you served for 13 months, the employer cannot recover the full amount but only a reasonable proportionate amount as the imposition of a penalty is void under Section 74 of the Contract Act. You can file a suit for the recovery of the amount that you have excessively paid. Please refer to the M/s. Scispa case decided on 11.11.2011.

Thanks

Regards