Dear All,
Today, I have received an interesting query from one of my colleagues. His brother, who is an engineer, was working with a small firm. The person (colleague's brother) was a fresher before joining this company. Upon joining this company, they asked him to sign a bond. I have reviewed the bond, which is very subjective and doesn't mention any compensation in case of a breach of agreement. The bond stipulates that the person has to work for a minimum of 1.6 years with the company after joining. The person was being paid Rs. 6000 per month as salary.
Upon joining the company, this person was immediately put on the job without any training due to their talent. Their contributions led to a significant profit, which was acknowledged and shared by the owner of the firm during a meeting with the employees. Now, this person has submitted their resignation as they have an opportunity to pursue an M.S. in Germany. However, the company has not accepted the resignation. During discussions, it was revealed that for the last 2-3 months, this person has been assigned clerical tasks as the company lacks sufficient projects, which has left the individual dissatisfied. Consequently, the person has stopped going to the office but received a notice from the company's lawyer stating to either rejoin the company or face legal action.
Please share your views on how long this notice can potentially cause trouble for this person and whether there is a requirement for them to pay any compensation.
Santosh
From India, Mumbai
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7Today, I have received an interesting query from one of my colleagues. His brother, who is an engineer, was working with a small firm. The person (colleague's brother) was a fresher before joining this company. Upon joining this company, they asked him to sign a bond. I have reviewed the bond, which is very subjective and doesn't mention any compensation in case of a breach of agreement. The bond stipulates that the person has to work for a minimum of 1.6 years with the company after joining. The person was being paid Rs. 6000 per month as salary.
Upon joining the company, this person was immediately put on the job without any training due to their talent. Their contributions led to a significant profit, which was acknowledged and shared by the owner of the firm during a meeting with the employees. Now, this person has submitted their resignation as they have an opportunity to pursue an M.S. in Germany. However, the company has not accepted the resignation. During discussions, it was revealed that for the last 2-3 months, this person has been assigned clerical tasks as the company lacks sufficient projects, which has left the individual dissatisfied. Consequently, the person has stopped going to the office but received a notice from the company's lawyer stating to either rejoin the company or face legal action.
Please share your views on how long this notice can potentially cause trouble for this person and whether there is a requirement for them to pay any compensation.
Santosh
From India, Mumbai
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Small firms and "baniya" companies resort to such kinds of tactics to hold promising employees. The bond per se is illegal and, moreover, it does not mention any financial compensation for breach of contract, nor can the company prove any substantial facts/expenses incurred to justify the bond.
Let the person inform the company that he is willing to dispute the matter legally in a court of law. Better still, ask him to reply to the notice through his lawyer.
Hope it solves your problem.
Warm regards.
From India, Delhi
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Let the person inform the company that he is willing to dispute the matter legally in a court of law. Better still, ask him to reply to the notice through his lawyer.
Hope it solves your problem.
Warm regards.
From India, Delhi
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The bond states that he has to work for 1.6 years. How many months has he worked so far? Is it more than 1.6 months? If there is no compensation for a breach of conditions, where is the question of sending a legal notice? If he was not happy with the clerical work, he could have resigned then. Clerical work is not inferior; a CEO shines when someone does clerical work. He can resign (by giving the required notice period) and proceed. Ask your friend's brother to sign any bond after clarifying all points with the employer or consulting a legal expert henceforth. Tell him to reply to the legal notice stating all the facts.
From India, Madras
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From India, Madras
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Thank you, Mr. Raj and Mr. Kutty. The person has only worked for 6 months with the firm. One more thing I would like to hear from you experts is whether a reply to this notice is mandatory. What if he doesn't reply? Or suppose he should reply, then can he reply on his own since going to a lawyer will cost something unnecessarily.
Santosh
From India, Mumbai
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Santosh
From India, Mumbai
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If he can draft a reply properly putting forth the facts and justifying his actions, that is enough. It is clear that he left the job of an Engineer because he was not given the role of an Engineer and that of a Clerk. He can very well state that he was appointed to work as an Engineer for 1.6 years and now he is not given the work of an Engineer but some sundry work, in which he is not proficient and related to his skills. Since he is not bound by any conditions for payment, let him go ahead with higher studies. Ask him to meet or talk to the employer and explain the situation. Please advise him not to enter into any such contract which has similar clauses in the future.
From India, Madras
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From India, Madras
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Bond of Employment.doc
Bond in employment.pdf