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Sagnik (Management Trainee)     30 April 2012

Restriction in appopintment letter

Dear all,

If an employee in his appointment letter had a clause stating that if he can not leave the company within a certain period then is such a clause be binding on him ? If yes, then can the company sue him on the grounds of breach of contract ? What are the remedies available to the employee ?

Regards,

Sagnik Sanyal



Learning

 4 Replies

Sagnik (Management Trainee)     30 April 2012

What I meant was a "clause stating that he can not leave the company within a certain period  the addition of an "if"  in the sentence is an error kindly ignore it.

Kumar Doab (FIN)     30 April 2012

The information posted by you seems to be incomplete.

Kindly post copy of the documents containing such clause. You may erase the names etc. to maintain confidentiality. Or you may  show such document to a competent and experienced service lawyer.

The appointment letter may contain notice period clause or a clause pretaining to service agreement. The employer might have  also mentioned penalty in case of breach of such clause.The amounts should be reasonable.If the employer has not invested in providing  training that added to qualification and skill of  the employee it shall be difficult to enforce such clause.

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     30 April 2012

Mr.Sanyal,

 

It is certainly a breach of contract. What remedy is open to the company is another issue. I opine :-

1. Specific Performance is ruled out as a contract based on personal volition cannot be specifically enforced. Hence company cannot force him to work for them. However having said that the company can obtain an injunction, depending on diverse factors, thereby restraining the employee from taking up employment some place else during term of employment (but emphatically not afterwards!!)

2. Damages are there for them to claim as a general rule for lossess ocassioned by breach of contract. 

 

Feel free to talk!

Sagnik (Management Trainee)     30 April 2012

Thank you gentlemen. The above mentioned queary was simply for the sake of knowledge & no such situation has arisen in reality as of yet. Thanx again for the answers.

Regards,

Sagnik Sanyal


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