Legal Question in Civil Rights Law in India

Sir

Many students of our batch have entered into a bond with an IT company.

The conditions are one sided, we cannot leave for two years but company can remove us from employment ,citing performance issues or any other.The company has not provided any overseas travel or higher education opportunities.The bond amount is Rs 1 Lakh (one lakh only).

How can we resign such that our jobs prospects in other companies are not compromised.

How much these bonds are defend-able in court of law?


Asked on 5/13/12, 7:10 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

13.05.2012

Dear Sir / Madam,

A Company insisting on a one sided Performance Bond is against the principle of natural justice as per the Constitution of India, and is void ab initio.

In case the Company terminates the services of an employee who has signed a Performance Bond despite there being no fault of the employee, the Company will have to pay minimum four month's salary at the time of the employee's termination as compensation, to make up for his / her remaining idle for sudden loss of employment.

In case you do not have the requisite job satisfaction in the present employment, you can request the Company to give you work which is to your liking and ensure that you get exposure in all Departments. You will make the Company bend in the same manner and keep them on the edge, just as they are making you bend and are keeping you on the edge.

When you have sufficient reason to believe that the Company is exploiting you under duress and pressure, it will automatically result in your quitting before the Bond tenure is over. For reasons cited above, you will refuse to pay the Bond amount. The Company will be left with no other choice, but to file a legal suit against you for recovery. They will have to substantiate all the grounds for termination in the suit which will be challenged in Court.

You can mail me for any further on-line advice at [email protected]

Regards,

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Answered on 5/13/12, 9:59 am
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

a lawyer has to go through the conditions mentioned in the bond in order to help you out.

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Answered on 5/13/12, 10:07 am


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