Hi,
Ours is a manufacturing firm. Please advise me on what actions we could take when an employee breaks the bond of one year, whether we implement an agreement/bond system in the company. Also, please explain the importance of such an agreement in India.
Thank you
From India, Hyderabad
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1Ours is a manufacturing firm. Please advise me on what actions we could take when an employee breaks the bond of one year, whether we implement an agreement/bond system in the company. Also, please explain the importance of such an agreement in India.
Thank you
From India, Hyderabad
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Validity of Employment Bonds
Bonds, when tempered with reasonableness, are valid. Let us say company X has incurred expenses on special training in a quantifiable manner; then a bond of employment for, say, 2-3 years to recover the cost of training may be valid.
Section 27 of the Indian Contract Act, 1872
Section 27: Agreement in restraint of trade, void. Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void. Exception 1: Saving of agreement not to carry on business of which goodwill is sold. One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
Enforcement of Bonds
Enforcement of a bond can be done if an employee breaks the bond. Each case will need to be critically examined before any comment can be passed.
From India, Pune
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Bonds, when tempered with reasonableness, are valid. Let us say company X has incurred expenses on special training in a quantifiable manner; then a bond of employment for, say, 2-3 years to recover the cost of training may be valid.
Section 27 of the Indian Contract Act, 1872
Section 27: Agreement in restraint of trade, void. Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void. Exception 1: Saving of agreement not to carry on business of which goodwill is sold. One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
Enforcement of Bonds
Enforcement of a bond can be done if an employee breaks the bond. Each case will need to be critically examined before any comment can be passed.
From India, Pune
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Dear Friend,
You have not mentioned the purpose of the bond and also the terms & conditions of the bond. Without this information, it is not possible to provide proper advice. Please share.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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You have not mentioned the purpose of the bond and also the terms & conditions of the bond. Without this information, it is not possible to provide proper advice. Please share.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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