Hi Everyone, I joined an MNC in September 2018 and signed a bond for 3.5 years. Now, I have completed 2.5 years and am willing to leave the company. The bond breakage conditions were stated as 50% of the total payment and a few other small amounts. They mentioned that I would be in a training period, but in reality, I did not undergo any training and directly started working at the client location in 2 months.
Could anyone please help me? The calculated amount I need to pay is around 10 lakhs. How can I negotiate or explore other options? I have attached the bond breakage details here.
From India, Bengaluru
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Could anyone please help me? The calculated amount I need to pay is around 10 lakhs. How can I negotiate or explore other options? I have attached the bond breakage details here.
From India, Bengaluru
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Understanding Contractual Obligations
As you have unconditionally accepted the terms and conditions of appointment, you are bound by them. The extracted portion cannot be said to be against public policy or the general law.
Section 73 of the Contract Act 1872
The section states: “When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.” Therefore, since the compensation has already been defined and accepted by the parties, you cannot escape the same in the long run if the management really pursues the legal option available to them.
Negotiating Release from Bond Obligations
Many organizations pay a joining bonus to get rid of such liabilities. You can negotiate with the new employer for getting you the release money.
From India, Mumbai
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1593As you have unconditionally accepted the terms and conditions of appointment, you are bound by them. The extracted portion cannot be said to be against public policy or the general law.
Section 73 of the Contract Act 1872
The section states: “When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.” Therefore, since the compensation has already been defined and accepted by the parties, you cannot escape the same in the long run if the management really pursues the legal option available to them.
Negotiating Release from Bond Obligations
Many organizations pay a joining bonus to get rid of such liabilities. You can negotiate with the new employer for getting you the release money.
From India, Mumbai
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High Court Judgement on Breach of Bond and Quantum of Compensation.PD F