Employment bond

Querist : Anonymous (Querist) 22 May 2024 This query is : Resolved
Respected Gurus,

Looking forward your suggestions in respect of following queries:
1. There is an employment bond for 2 Year and if any employee leave the organization before 2 years he / she need to pay Rs 2 Lakh.
Query : if Employee leave the organization after 1 year so he / she need to pay full or in proportion as he /she has already served 1 Year.

2. As per employment agreement , monthly salary would be paid lump sum or in instalment a per employer convienence
Query: If salary is not paid in next month so it is breach of employment Bond.

I shall be grateful if related case laws are provided

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T. Kalaiselvan, Advocate (Expert) 22 May 2024
If you have signed the employment offer letter after accepting the contents therein then you are legally bound by the conditions.
If the salary is not paid regularly then you can put down the papers for the same reason, in that case you can argue that no salary means no work and refuse to abide by the employment offer letter conditions.

Querist : Anonymous (Querist) 22 May 2024
But the employee has already server year so now employee is liable to pay for remaining period . Many legal cases have been decided on this basis.

T. Kalaiselvan, Advocate (Expert) 22 May 2024
Yes he can compensate proportionately, there are plenty of such judgments

T. Kalaiselvan, Advocate (Expert) 22 May 2024
The employment bond is created by the employers to safeguard their interests and curb the losses but the compensation payable in case of the infringement and termination of the contract cannot be unnecessarily harsh and must be justified. If the compensation imposed by the employer is found to be exorbitant compared to the cost faced in the recruitment procedure, training and hiring a replacement, then the Courts have the right to reduce the excessive compensation payable as per the contractual agreements to a ‘reasonable’ amount.
No employer can compel any employee to work for them by enforcing employment bond. If there is infringement, the only remedy available to the employer is to obtain a reasonable compensation amount. It would be better that the employment bond is created keeping in mind the interests of both the employer and the employee to prevent its validity from scrutiny.

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