can company claim if someone has signed an agreement
Querist :
Anonymous
(Querist) 27 October 2009
This query is : Resolved
If someone has signed an agreement (bond) of "x" amount with any company to work with it for 12 months after an overseas training, whereby such overseas training has been successfully completed and subsequent to return of such candidate from the training some dispute has been arisen?
Please reply?
Adv Archana Deshmukh
(Expert) 27 October 2009
In my opinion it depends upon the terms of the bond to ascertain, under what situation the person can quit the company without requiring to pay the bond money. If nothing so, the person can quit the company by paying the bond amount. Let us see what the other experts say,
Sudharsan.m
(Expert) 27 October 2009
Yes you have to pay the bond money for the training period alone, however, according to constitution on India these kind of agreement is not valid in law.
James Arun
(Expert) 28 October 2009
Any type of bonded labor has been abolished as per the Bonded Labour System (Abolition) Act, 1976.
Usually, a typical bond states that you are required to work in the company for 1 or 2 years once you complete the specialized training you receive, skills of which you did not possess, when you started training. And if you cannot, you should pay the training cost, usually from Rs.50,000 to Rs.5 lakhs, depending on the cost of training.
If you have entered into such a contract, it is not illegal. This is a simple contract, where you voluntarily agreed for training, underwent training, and now due to a dispute, you want to come out of the contract without paying anything. We need to know more about this said dispute. Do you want to resign for better prospects or is the company terminating you for cause?
If you want to resign for better prospects, you should pay the training cost, as per the contract. The company has liberty to enforce this in courts of law.
If your company wants to terminate you for cause, including no cause, then this amount need not be paid. Since in this case, you are willing to do your part of contract, whereas the company is not willing. You will not owe any money in this case.
Theja
(Expert) 28 October 2009
These are restrictive covenants. These kind of prov and contracts do not have enough enforceablity in India as they may violate the Fund.rights under Indian Constitution.
In normal corporate perspective, in case of binds like this, it depends upn the language of the bond. The language may sometimes provide some reasonable exceptions in case of which either the company may terminate your services with or without cause or you may resign from your services.
Normally, most of these bonds are one-sided. The bonds are in the best interest of the companies, as they are in better bargaining position than the job seekers. As explained earlier, in the event of termination of resignation either of the parties shall give reasonable notice of the same. But, the notice period required to be given by the company and the employee differs between each other. It will be greater for the employee.
So, when you want to quit your services from the company then you may have to the requisite notice and pay the amount agreed to as per your agreement. I dooubt if you have a copy of the bond. Do you have it?
Adv Archana Deshmukh
(Expert) 28 October 2009
Nicely explained by James Arun and Theja. It also added to my knowledge :-)
Querist :
Anonymous
(Querist) 11 November 2009
Many thanks for your responses. I wish to add followings -
1. I wish to continue my job but the case is that the HR people (including my manager) are putting undue influence upon me to sign a warning letter (for which they do not have any justifiable reason) if i wish to resume my job. I strongly disagree with them. They have snatched my ID card from me (without my willingness and my signature as an acknowledgement) and now they are torturing me and my family for imposing their decision upon me.
2. The bond is applicable upon me if any of the following cases -
a). If employee fails to complete the onshore training. (it has been completed successfully and i have also worked for around 20 days after returning to INDIA
b). I employee fails to work for at least 12 months after returning to India.
c). I employee is terminated by company during the period of training on grounds of misconduct etc.
Please advice me on the following -
1. Can the company claim anything on the basis of this bond?
2. What should i do so that i can rejoin my job without signing warning letter?
