Why execute a training bond

For an employment bond to be enforceable, it must first be considered a contract under law. In essence, the term "agreement" means there are a set of promises that are expected to be fulfilled if the proposal has been accepted. If the offer is accepted, then the promises can have a reasonable expectation to be met. All agreements start with an offer which is a legal obligation to fulfill certain responsibilities in exchange for compensations.

The acceptance of this offer is the next stage in completing a contract and will constitute a promise of compliance. If either party is not competent to enter into the contract that the contract can be considered null.

There are certain requirements of any contract for it to be considered enforceable. Hence, an employee these days accepts a job on most of the terms and conditions set out by the employer. This scenario is mostly applicable to freshers or employees with not much experience. Though nothing stops an employer to go ahead and put the same conditions infront of an extremely experienced employee too. Incase of default in providing services mentioned in the bond and a notice being issued, if at all, one tries to steer clear of the notice, it would amount to a decree being granted by default and as exparte.

Hence all bond proceedings should be faced in order to avoid unnecessary adverse orders. The aggrieved party in the case of non compliance can file a suit for claiming the damages. Usually, the court determines the reasonable compensation amount by computing the actual loss incurred by the employer observing all circumstances of the case. Related Articles The India Patents Act India Patent Law IntroductionIndia Patent, under the Act , is a grant from the Government to the inventor for a limited period of time, the exclusive right to make use, exercise and vend his invention.

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Information Technology Act Connectivity via the Internet has greatly a bridged geographical distances and made communication even more rapid. There is no requirement to prove separately any post-breach damages. The employer is required to establish that the employee was the beneficiary of special favour or concession or training at the cost and expense wholly or on the part of the employer and there had been a breach of the undertaking by the beneficiary of the same.

In such cases, the breach would per se constitute the required legal injury resulting for the employer due to breach of the contract. Employment bond clauses are an employer friendly clause that acts as a deterrent to employees who tend to quit their jobs after seeking the training. It significantly helps the employer cut down losses caused by frequent vacation of the jobs by the employees.

Based on the above findings and various court decisions, employees are always free to choose their employment and cannot be required to work for any employer by imposing the employment bond. The only recourse open to the employer in the case of a breach of contract by the employee is to seek a fair compensation amount. The compensation amount awarded shall be based upon the actual loss incurred by the employer by such breach. Disclaimer : The content of this article is intended to provide a general guide to the subject matter and that the same shall not be treated as legal advice.

For any queries, the author can be reached at abishek samistilegal. Leave your email id to receive regular updates on corporate law changes that have impact on businesses. Samisti Legal is a corporate law firm with an experienced set of inter-disciplinary legal professionals with an unwavering focus on providing advice based on the business intent.

Email: prashant samistilegal. Employment Bond to recovery March 25, India Ltd. Subir Ghosh Vs. The breach constitutes legal injury resulting to the employer. The High Court also clarified the position that the statutory exception for mitigating the quantum of damages will have no bearing. The terms of trainee contract contained a provision agreeing to serve the company for a particular period of time and to pay a fixed sum of damages in the event of a breach.

The High Court held that since the stipulation in the agreement was for payment of liquidated damages, it is immaterial to specifically plead or prove damages and that it is open to the management to sue for recovery of the liquidated damages. According to Section 27 of the Indian Contract Act, , the terms and conditions of the contract are valid only during the existence of the contract. It cannot be enforced after the contract is terminated.

In Superintendence of Company v. Krishan Mugai , it was held that, in a contract of restraint of trade a restriction is put on the future liberty by one party on the other party to carry on his trade, profession or business in such manner and with such person as he chooses. A contract of this nature is prima facie void but becomes binding and valid if it can be proved that it is necessary from the point of view of parties and also to the community. Such interests are valid as they take care of the interest of the employer and do not cause any undue hardship to the employee, who will receive a wage or salary for the period in question.

But if the covenant is to operate after the termination of services, or is too widely worded, the court may refuse to enforce it. The employment bond is considered reasonable as it is necessary to protect the interest of the employer.

The employee cannot be compelled to work for any employer by enforcing the employment bond. In the event of a breach of contract by the employee, the only remedy available to the employer is to obtain a reasonable compensation amount. LawSikho has created a telegram group for exchanging legal knowledge, referrals and various opportunities. You can click on this link and join:. AIR SC All this happened in June Since then, its stuck in my mind that after all the work I have done and effort I put in, I paid everything that I ever earned in that company.

Is there anyway that I can stick it back to that company now after almost 8 years? Hi, I am working in an IT company in Bengaluru. I joined a company as intern while joining they told me there is an agreement of 3 years of bond and gave some hard copies to sign and submit. Now i have completed 2 years, 2 months in the company and want to leave the job. The company is telling me that i m under the agreement of 3 years of bond where i dont have any copy of the bond what they are telling.

Please guide me. Dear Sir, please help, My company made bond of 4 years, in which they said if i leave company before 4 years i have to pay 1. I have worked in company for 2 years and 3 months, in which they have done increament only once, thry have not even giving any trainig to me by which they have spent money on my training Now when i left company without notice period they are saying they are going to deposit that cheque of 1.

Please help what should i do. In the proceedings under S. I had signed an agreement with a IT company on Jan for 3 years. Well for the sake of job I agreed to pay a sum of 2 lakhs.