Can A Company Bind An Employee To Stay In An Organization Fo

Yes or No. An employee went on OJT to the USA and for that, he had signed a two-year bond. If he wants to leave in the middle, then he has to pay two lakh rupees. So, I want to ask, is there any way by which he can escape this bond and leave the organization? Can he defend himself in the court of law if the company files a suit against him? Will his career be affected in any way? Please provide a solution as soon as possible.

Hi Viraj,
Your friend has sign a bond with his knowledge and by doing so has agreed into contract abiding by the organization’s rules and regulations. I don’t think he has any way out of this except sticking there till he completes the 2 years or paying the penalty and getting out of there.
In my point of view and with the info that you have provided I don’t think your friend stands a chance in the court unless he has a “very” valid reason to defend him self against.
And the company has all the rights to take him to court because he has signed a legal document.
Regards,
Ashra

In case he jumps the bond, the Company can sue him in a civil court for recovery of the total expenses made on his training, the to and fro fare, along with any damages the Company can prove in court. If this amount together is less than the bond amount, then the recovery may be restricted to the bond amount. The employer cannot, however, enforce that the employee serves them for the period of the bond. It will be a choice for the employee. Ethically, it is also not correct to commit any breach of any promise, be it written or unwritten.

A.S. Sharma

Hi,

He can escape from this problem. As you told, he has a bond with the company for two years. Now, if he removes this contract before time, the company may file a case against him.

So, to escape from this problem, he should try to accept those things during his bond which may prove harmful for the company. If the company sends him to the USA for a deal that could benefit the company's future, he should try to present those aspects to the USA company that could cause loss to his company instead of benefit.

If he continues to do such things two or three times, the company will definitely terminate his employment. Companies expect a good response from employees so that they can benefit rather than incur losses.

Regards,
Parveen

Dear Parveen,

I think he should not do that because his poor work performance may affect his career in the future. If he intentionally shows poor performance, he may get rid of the problem now, but later on, during his reference check, he will suffer badly as the company where he is working now would not give positive feedback.

He would not have signed the bond if he wasn't happy with the terms and conditions. Rather, he should try to speak to the management regarding his problems. Then after two years, he can leave.

Gitanjali Shimal

Dear friends,

I strongly disagree with you all. No employer can bind an employee by obtaining a bond/agreement from them. Such agreements are void in the eyes of the law as they are considered agreements in restraint of trade. Such cases have already been brought before the courts, and the law has been settled in such matters. The Supreme Court and various High Courts have already stated that any negative covenant (condition) that restricts the employee from taking up employment elsewhere is a violation of Section 27 of the Indian Contract Act and is therefore void.

Regards,
Anand