How to break employee bond
Karthik Mohankumar
(Querist) 03 September 2013
This query is : Resolved
My company sent me for deputation work to USA for two months at previous year (2012 July & August) and I signed a bond also. This bond duration period is two years. If I break this bond they will charge me the complete expenditure with 18% interest. In that bond they mentioned that Civil Courts at Bangalore alone shall have exclusive jurisdiction, in case of any dispute arising out of this agreement. I heard that in India employee bond is not valid. Is this correct? Please suggest me If any possibilities to break this bond.
Thanks in advance
Nadeem Qureshi
(Expert) 03 September 2013
Bond is valid or void its depend on the terms and condition of the bond
Raj Kumar Makkad
(Expert) 03 September 2013
What is your real intention and what actual facts are of your query?
Rajendra K Goyal
(Expert) 04 September 2013
Agree with the experts, State full facts.
Karthik Mohankumar
(Querist) 04 September 2013
Here with i have mentioned below the complete bond details for your reference.
AGREEMENT FOR TRAINING, DEPUTATION ABROAD-CUM-SERVICE
MEMORANDUM OF AGREEMENT made on the 21st day of June Two Thousand and Twelve at Chennai.
B E T W E E N
XXXX Private Limited, a Company incorporated under the company Act, 1956 and having its registered office at Bangalore , and having its division at XXX Company, Chennai, (hereinafter referred as ‘the Company’) of ONE PART;
A N D
Mr. M. Karthik, S/o Mr. B. Mohankumar aged about xx years, having his permanent residence at xxxxx, Kerala, hereinafter referred to as the 'Employee') of the OTHER PART.
W H E R E A S
1. The Company has selected the Employee for training / deputation abroad to USA, for receiving training and/or for observa¬tion and/or for business purpose and/or for other purposes of the Company, on the terms and conditions hereinafter appearing.
2. The Employee has agreed to go abroad on such training / deputation on such terms and conditions.
NOW, THESE PRESENTS WITNESSETH AND KNOW ALL MEN AND IT IS HEREBY MUTUALLY AGREED TO BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS
1. The Company agrees to depute and the Employee agrees to go on training / deputation to USA, for the purposes of receiving such training and/or such observations and/or business purposes and/or such other purposes for such period as the Company may determining and direct.
2. The cost of training / deputation of the Employee abroad including his cost of travel within India and from India to Foreign country or from one Foreign country to other country or within one or more Foreign countries and back and foreign exchange as may be sanctioned by the Company and as per guidelines of the Company in this regard shall be borne by the Company.
3. The Employee shall forthwith at the end of his period of training return to India and resume his duties under the Company on the post held by him immediately prior to his training / deputation on the existing terms of employment. The Employee shall not demand or will he be eligible for any revision in his terms of employment.
4. The Employee shall, after his training serve the Company diligently and conscientiously till the completion of the first 24 months from the date of resuming his duties, or twice the period of stay abroad, whichever is more. The maximum limit for such duration of service, after resuming the duty, shall be 24 months.
5. During the period of his training / deputation abroad and services with the Company thereafter, the Employee shall faith¬fully and to the best of his ability employ himself for receiving necessary training and/or in observation and/or carrying out the purposes for which he has been deputed or in the service of the Company, as the case may be. The Employee shall not, without prior permission of the Company discontinue the purpose of which he is deputed or otherwise take up any other designation, employ¬ment, profession, business or trade, while he is abroad. The Employee on his resuming the duties will impart whatever he has learnt during his stay abroad to these Employees who will be so designated by the Company in this regard. He shall confirm to carryout and obey all and every order, directions and instruc¬tions of the Company issued or in force from time to time and shall use the utmost of his endeavor to promote the interests of the Company.
6. The Employee shall not absent himself from duty at any time without the sanction of the Company first obtained in writing nor shall give his services or advise to anybody else, nor become interested nor engaged in any similar or other enterprise, under¬taking, business or trade, either alone or jointly with others during his stay abroad.
7. The Employee shall carryout all duties and responsibilities of his position and shall perform all such work as may entrusted to him or as he may be called upon or required to do in such capacity with due diligence, punctuality and to the best of his ability and skill shall conduct himself honestly, faithfully and properly at all times through out the period of his deputation and service under the company and shall not be guilty of any negligence, misconduct or misbehavior or commit any breach of this agreement. If the Employee is not found competent for depu¬tation after commencement of the purpose for which he is sent abroad of if he commits any misconduct or any offense involving moral turpitude or any offense punishable in India or in Foreign country (i.e.), the company may call back the Employee. Such cases shall be dealt with according to the provisions of laws and/or rules as may be in force in India/Foreign country.
8. The Employee agrees to his transfer during the period of his training / deputation at any time and from time to time by the Company to any of its factories, offices, sub-offices, branches, departments, centers or other places or estab¬lishments of the Company.
9. The Employee also agrees to the transfer or deputation of his services to any other establishment, organization, concern, associated sister Company, Company, body corporate, firm, asso¬ciation or individuals, whether in ally or an associate of the Company or carrying on trade, business or activities similar or otherwise to those of the Company. In the event and from the date of any such transfer of the Employee, he shall be deemed to have accepted the employment under such other establishment, organiza¬tion, concern, company, body corporate, firm, association or individual and the terms and conditions contained in this Agree¬ment shall apply to such employment of the Employee to the same force and effect as of this Agreement had originally been entered into between the Employee and such other establishment, organiza¬tion, concern, company, body corporate, firm, association or individual to which he/she may be transferred from time to time during the continuous of his/her employment without any break in the continuity of service.
10. During the continuance of the deputation / training and thereafter, the Employee shall keep confidential and prevent disclosure or divul¬gence of any or all information, instruments, documents, reports, statements, logs, records, correspondence, discussions, contract plans, drawings, photographs, copies, methods, trade, secrets, manufacturing process, machinery, know-how, layouts, patents, transactions, affairs, dealings, finances, accounts, etc. in course or arising out of deputation / training and / or thereafter in the services.
11. The Employee shall be subject to and governed by the Service Rules, standing orders and regulations of the Company in force from time to time, so far as they are not at variance with the terms therein contained.
12. In case the Employee at any time makes a breach of all or any of the provisions of the Agreement or fails to carry out all or any of his/her obligations hereunder, this agreement shall au¬tomatically stand determined and he/she shall forthwith refund to the Company all the moneys which he/she may have received from the Compa¬ny or which may have been expended for and in respect of this deputation abroad by the Company by way of cost of travel more particularly described in clause 2 above with interest thereon @18% (eighteen percent) per annum with effect from the date of such receipt or expenditure till actual payment without prejudice to the other rights and remedies open to Company under the Agree¬ment of any other law. The Company shall determine the amount of such refund. The employee will not be able to complete all leaving formalities without payment of all dues in this regard.
13. In addition to the amounts, which will become due as per clause 12 above, the Company at its sole discretion shall be entitled for recovery of the liquidated damages on the following basis:
(a) During Deputation One Year Gross
Remuneration.
(b) On leaving the services Amount equivalent to four
after returning to India months gross salary pre-
but before the expiry of vailing at the time of
this contract leaving the services of
the Company
14. This agreement shall terminate forthwith on:
(i) Death of the Employee
(ii) Dissolution or winding of the Company
(iii) Termination of services of the Employee by the Company
15. Civil Courts at Bangalore alone shall have exclusive jurisdiction, in case of any dispute arising out of this agreement.
IN WITNESS WHEREOF the Company acting through its properly au¬thorised representative and the Employee acting in person have signed and executed this Agreement in their respective names and on their behalf and delivered at the Chennai Division of the Company on the day, month and year first above written.
Signed and delivered by
For and on behalf of XXXX Pvt. Ltd.
Signature:
Name: M. Karthik
Designation: Engineer - Design
Signature:
Name: XXXXX
Designation: General Manager
In witness thereof:
1. : ..............................
Name : XXXXX
Designation : Team Lead - Design
2. : ..............................
Name : XXXXX
Designation : Manager - HR
Please suggest me If any possibilities to break this bond.
Dr. Jyothi Vishwanath
(Expert) 04 September 2013
You have taken the benefit of going abroad at the cost of the company. Now it is morally and legally too better you serve them for full two years.
Rajendra K Goyal
(Expert) 04 September 2013
The terms of the agreement are binding on parties to the Bond(Agreement).
Guest
(Expert) 05 September 2013
No other alternative to break the bond, except by termination of services, if made by Company at its own in terms of para 14 (iii) of the Bond.
