Hi,
I need to know about the service level agreement that I have signed with an IT firm on a stamp paper worth 1 lakh rupees, committing to work for the company for 2 years. Now, I am considering breaking this bond, and I do not require an exit letter, a relieving letter, my PF money, or my experience certificate. In this situation, do I need to pay the bond amount, or is there a way for me to resolve this without incurring any financial obligations? Please suggest.
From India, Thane
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I need to know about the service level agreement that I have signed with an IT firm on a stamp paper worth 1 lakh rupees, committing to work for the company for 2 years. Now, I am considering breaking this bond, and I do not require an exit letter, a relieving letter, my PF money, or my experience certificate. In this situation, do I need to pay the bond amount, or is there a way for me to resolve this without incurring any financial obligations? Please suggest.
From India, Thane
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If you do not want any certificate and dues from your employer, you can simply abscond. But legally, the company can still sue you in a court of law. They can even obtain an interim stay. They can legally collect the money from you.
From India, Chennai
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379From India, Chennai
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Employers always look for methods to keep employees working in their company for as long as possible or for a reasonable time, like one year, thus checking attrition costs and fresh recruitment overheads. From a purely business point of view, an employee under a service agreement/bond shall be economical and easier to handle, etc.
Has your company incurred any special or training expenditure, like sending you abroad for a course or training, etc.?
My Opinion on This Issue
The execution of a service bond to restrain an employee from changing to a better job opportunity is clearly a violation of Section 27 of the Contract Act 1872. It is also a violation of Article 19 of the Constitution, which guarantees the right to work. I would also like to mention that some courts have ordered the recovery of actual reasonable losses (quantifiable) from the employee, for example, the recovery of specific training costs.
Depending on the facts of your specific case, only answers can be given by learned members.
From India, Pune
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Has your company incurred any special or training expenditure, like sending you abroad for a course or training, etc.?
My Opinion on This Issue
The execution of a service bond to restrain an employee from changing to a better job opportunity is clearly a violation of Section 27 of the Contract Act 1872. It is also a violation of Article 19 of the Constitution, which guarantees the right to work. I would also like to mention that some courts have ordered the recovery of actual reasonable losses (quantifiable) from the employee, for example, the recovery of specific training costs.
Depending on the facts of your specific case, only answers can be given by learned members.
From India, Pune
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BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc