Dear All,
When Human Trust and Trustworthiness are put to test, then the Employee Bonds become the order of the day. HR Professionals should be aware on how to use this Bond as a tool effectively.
A Bond is effective before the employee resigns from the Organization/company. Any contract with futuristic clause, other than disclosure of Trade secrets, would NOT be admissible by Indian Courts.
The onus of Burden of proof, is again left on the initiator of proceedings, (the employer).
To understand its technicality, read the following:
The negative covenants operative during the term of the contract are not hit by section 27 of the Indian Contract Act because they are designed to fulfill the contract and not to restrict them.
On the other hand, when a restriction applies after the contract is terminated, the restriction on freedom of trade, business or profession takes the form of
restraint of trade, business or profession.
This distinction which is of a fundamental nature has to be borne in mind; otherwise the perspective will be lost.
With Warm Regards,
V.Govindarajan.
Manager-Continuous Improvement.
Raysoft Technologies.