Can An Employer Penalise Employee For Breaching The Employment Contract?

I have given my resignation letter to my organisation and served about 15 days of my 3 months notice period after which I had to take leave due to medical reasons. My company has sent me an acknowledgement letter asking me to pay Rs.1,00,000/- in line with me breaking the 3 year employment bond signed by me on my date of joining.
And I have been working with that organisation for 11 months.
Can my employer penalise me for breaching the employment contract? What will be the consequences if I default by not paying the mentioned amount?
Pls clarify.
Regards,
Shakti

I would suggest you read the employment bond letter of your company, a copy of which you might have received at the time of joining. If there is strict rules, then you need to follow them. Unofficially, you can talk to someone senior with whom you have a good relation and may be this person can help.

Pl read the thread titled "break of bond" dated 27.2.15 in which it has been explained that employer can recover training expenses incurred etc and not the bond amount. Besides it is also explained that the employer can make only authorized deductions permissible under the Shops and establishment Act or the Payment of wages Act whichever is applicable. Deduction or recovery in respect of bond liquidated amount is not contemplated.
Thanks
Sushil

Hi,
On breach of employment contract your employer can take legal action against you and can ask the hon'ble court for specific performance of the contract or to liquidate the damages from you.
For more detailed discussion you can contact us .
Thanks & Regards
Sanjeev Kumar Baliyan
Advocate & Consultant
sanjeev.baliyan@clairvoyants.co.in
9971589511

Specific performance cannot be enforced by or against employer see famous Vaish Degree college case of 1976 decided by apex court and followed in 1991 case.Further as per Scispa India Ltd v Manas decided by Delhi HC in 1991 against Bond of Rs.2 lakhs an amount of ,Rs 22000 plus was awarded by considering training expenses incurred and period of service rendered by employee. Pl see the ratio in terms of sections 73 to 74 of the Contract Act.

specific performance depends upon the type of employment contract. It is a general view in a open discussion. The citation of cases are very specific.Specific advise can be given after going through the employment contract only.
Thanks & Regards
Sanjeev Kumar Baliyan
Advocate & Consultant
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9971589511

Hi Shakti,

1 lac. rupees is not a big amount. Company can easily prove that they have spent this amount on your training & onboarding. As you have not completed 1 year in the organisation, it can still be deemed as your training period. Also, legal matters can take lots of time to settle. Company an easily appoint a lawyer, but you will have to wasta un-necessory time & money into it.

Your best choice would be to discuss with your senior management in the company & settle the matter. You can produce the medical certificate & request the company to allow you to consider the period as absence in notice period (non-payable). During notice period, the sick leave is not applicable like any other leaves, but if you produce a medical certificate, then they will have to accept in goodwill.

I am sure, the medical excuse during relieving period is not considered & detailed in the bond you have signed.

Though, please do not consider this can be considered a loophole in the system. Beware, that you should not be proved to be working elsewhere in this period. If you produce a false medical certificate, then it can be a different legal case on you & the doctor involved.

If your reason is genuine & you request appropreately, you may get out of this situation with good note about relieving letter as well.

Best of luck in the negotiations..... :-)

Best Regards,

Amod.