Praveen Singhai (Advocate) 10 February 2010

Contract/ Bond sign with Employer

My client has signed a contract /bond with his Employer as he cannot left the company before 2 years, if he do so the employee has to pay the cost incurred on him for training''' as the Employer send him to US for 2 months training, in a stamp paper of Rs. 100/- purchased from NEW DELHI and the working place( office is in haryana).

Employee went to US and come back, he worked for the company for 1.5 yrs & left the same.

My client sent his resignation letter fron his private mail id to his BOss's official mail id, no reply come from Boss.

But, intersting thing happened, my client got the salary of the next month (i.e next month after his giving resignation) and letter after 2 monts regarding action plan has been take against my client if he not join the office ASAP.

After passing almost 1.5 yrs no steps has been taken from the company. But there is Arbitration clause in the contract.

My client is a qualified professional.

MY querry:----- Is this type of contract/bond are legaly valid??

What remedy is with my client??

Is my client has to pay some amount to the company??

IS there is any judgement on this issues???

I want to protect the interest of my client,, suggest me

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1 Replies

R.R. KRISHNAA (Legal Manager) 10 February 2010

The remedy to claim amount is 3 years. Hence the company can issue a notice after 1.5 years.

Yes this kind of bond is valid and enforceable.

Negotiation and settlement is the only way or otherwise your client has to pay the money claimed by the company by way of judical process.

If you want to protect the interest of your client, you merely have to negotiate and settle the issue with the company. In case of contesting with the company, the entire draft of bond / contract is necessary to reply better. Merely because there is arbitration clause, does not mean that the matter will be taken to arbitration. If there is any other clause providing that any dispute shall be subject to jurisdiction of courts at punjab or haryana etc etc, then arbitration clause has no effect. Over all, better reply can be provided only on perusing the copy of the bond and the notice issued by the company.

Please advice your client not to sign any such bond/contract in future with any other company.