Is Our Onsite Deputation Bond Legally Enforceable Against Employees Joining Clients?

Hi,

Our company takes this bond when employees are sent onsite on deputation. This bond is executed on a ₹100 stamp paper where employees are required to sign multiple pages. One of the clauses in the bond states:

"While working on the assignment and for a period of three years after the completion of the assignment, I shall not seek employment or engage in any business with the customer without written permission from the company. If the customer attempts to engage me directly in business or offers me employment, I shall promptly notify the company."

Now, my questions are:

1. Is this bond legally enforceable?
2. An employee recently returned to India upon completing an assignment for our customer and promptly resigned. It has come to our attention that he has received an offer from the same customer. Can my company take legal action against the former employee and seek compensation based on the aforementioned clause?

Thank you for your responses.

Regards,
Rajan

I don't think that the bond will be maintainable. However, if the bond was for the recovery of training costs incurred by the company from sending the employee abroad and training them there, the company could claim compensation up to the extent of such training costs.

Regards, Madhu.T.K

Hi Mathu,

The contract was signed to send him to work abroad, rather than for any training. The compensation claimed by the company includes all onsite salary paid during his stay, plus 15% of the total sum, and an additional 5 lakhs.

Regards,
Rajan.