Legal Question in Business Law in India

Re: Breaking probation Bond

Dear Sir,

We acknowledge with thanks receipt of your query. We have noted the contents of it. The problem being faced by you is a genuine problem, which is quite frequent now a days.

You have stated that as per the agreement, you have undertaken to work for one year. We presume that there must be a clause for liquidated damages, which must have stated the amount you would be liable to pay in case of any breach of the agreement. However, the position in India in case of such stated amount (liquidated damages) is different as compared to British Law and it is based on actual loss. This implies that at most you are liable for the amount of actual loss to the Company, which again needs to be proved before the concerned Court of Law.

The abovesaid is a provisional opinion as the actual position will emerge out only after the perusal of the following documents:

1. Appointment Letter,

2. Agreement with the Company,

3. Standing Orders of the Company,

4. Correspondences, if any.

Apart from the abovesaid we need to know the reasons for your dissatisfaction, as this may be one of the reasons by which we can avoid any liability.

Kindly provide us the detailed information, so as to provide you the conclusive/final opinion.

Thanking you

Yours truly,

Kumar Manish,

Kalp, Advocates & Consultants

909, Pragati Tower, 26, Rajendra Place

New Delhi, India

110008

Tel: 51539493/51539793

Email: [email protected]; [email protected]

Re: Breaking probation Bond

We need more details from you

1. What was written in appointment letter.

2. Did you do any training.

3. Was any amount mentioned in letter/undertaking

which says shall be recoverable from you.

After receipt of these details We will be able to give you opinion.

For M.V.KINI & CO.

Pardeep

Re: Breaking probation Bond

Any employment can be terminated and the employer is not entitled to seek any reliefs in that behalf, excpet to claim for damages, if such damages are provided by the terms of employment or otherwise. Such entitlement of employer is further qualified in several cases, that such damages should be reasonable.

Re: Breaking probation Bond

If you propose to jump the bond by acquitting the job before completion of 1 year as per your service agreement the maximum damages would be the compensation as stipulated in the bond or under service agreement become payable to the company. If you don't pay the company may proceed legally to recover the same. However, there would not be any criminal prosecution against you.