Dear Experts,
I joined in an organisation (it is a learning center for IB students) in March 2012 (it was a start up organisation and I was the first employee). We had good understanding and trust in between my management and myself so that we are not asked to sign on any employment bond. We had no casual leaves, no PF, no ESI and no salary accounts. They credit salary in our personal savings accounts. And also we had only 4 festival holidays. Gradually the business went up and we got good reputation in our city and the management feel little insecurity of losing us. So they asked to sign on an employment bond for 3 years from 1.Aug.2013 to 31.July.2016. In that agreement they mentioned that they spent 1.5 lakhs for each employee training including the computers, its peripherals and internet services. There is no notice period to leave the organisation/terminate the employee. But instead of notice period, they mentioned "hardship". An employee can leave under hardship. In their words hardship means "the employee is incapacitated, either physically or mentally in any way that prohibits him from discharging his duties. If the employee comes upon a hardship that interferes with work to a point that he can no longer fulfull his obligations to the company. In this case, it is assumed that the employee cannot and will not gain alternate employment, for a period of one year after termination of employment with company. Under this circumstance, the bond becomes null and void". If we breach the contract before the expiry of the bond, we have to pay Rs. 1.5 lakhs as liquidated damages.
As we had good trust each other and they said as it is a formality, we signed on the agreement. But after working 1 years since we signed on the bond, their behaviour was changed and they did not fulfill any of their promises they made verbally with us. We fought for our salary accounts, PF, ESI and minimum number of festival holidays. They opened accounts in Standard Chartered bank and transfer the salary to that account. But it shows that the money is transferred through NEFT to savings account (later we came to know that those Standard Chartered accounts are savings account in which they manage to give zero balance accounts). Still we did not get PF, ESI. They did not provide Form 16 for IT returns for the recent year. As the management become untrust and unprofessional, we feel insecure and no professional growth in that organisation.
I was there for one more year. In the month of last July my father wasn't feeling well and I went on long leave and I informed them by mail and sms. After a week my wife also joined with me (she is also working with me there itself). After 10 days, I sent a mail that we can't say when we can comeback as my family needs my support. Meanwhile I got a better opportunity in my profession in another organisation and decided to join there. I shifted my parents with me to the same location. Luckily my wife also got the same opportunity in my organisation within a week.
I did not communicate with myprevious management anymore. After 10 days they sent a mail and an sms stated that they want to talk to me regarding my job. But I wasnot in a position to believe their words anymore and ignored them. Later they sent a mail that it is the matter of HR and Legal. As we breached the cotract, each one of us have to pay Rs. 1.5 lakhs and their lawyer's fee. They wrote we are going to be penalised for several lakhs. Still I ignored that.
Almost after 1.5 month, recently they sent a legal notice to my wife in which it is mentioned she has to join within 10 days of receiving the notice or else she has to pay Rs. 1.5 lakhs and the amount which was incurred to them in her unusual absence.
After googling and going through several forums and judgements I convinced myself that the employment bonds are not legally valid in India. In my case I had the following points to defend myself.
1. We had not given any professional training by the company. As I was the first employee, they provide some reference books to study and learn.
2. They did not provide any basic facilities like PF, ESI, Salary account, minimum number of festival holidays
3. In the agreement it is mentioned what the employee has to compensate if he has breached the contract but it is not mentioned what the organisation compensate if they terminate him under the clause of hardship. I believe it is one sided agreement.
4. Anyway if I leave the organisation with any reason, my wife also will leave. Keeping that in mind, the management sent a legal notice her to join within 10 days or pay Rs. 1.5 lakhs and compensate the other damages. We feel it is like threatening her to join.
These are the points in my mind. I don't know how many of them are valid according to the law of Indian system.
As she has already received the legal notice from the lawyer of my management, what we have to do now? Do we need to respond personally or do we have to contact another lawyer?
In that legal notice, the lawyer mentioned that we have to remit Rs. 5,000/- also (I think towards his fee as my earlier management mentioned in the mail).
Please suggest us what we have to do further? How to respond to his notice?
I am lookinf for your kind replies.
Thank you in advance.
