What Happens If I Break a 2-Year Employment Bond After 30 Days of joining?
What Happens If I Break a 2-Year Employment Bond After 30 Days of joining?
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The employee has the right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time.
As per Contract act in India, such bonds are not enforceable, since they are considered in restraint of trade.
In the past, many employees have violated such bonds and in such cases, companies have resorted to different means:
Allow the employee to go, take no action - In this situation, you lose nothing, the company will discharge you.
Allow the employee to go, hold his Salary - In this situation, they will not pay your full and final settlement salary.
Probably you will lose gratuity, leave encashments etc. and your unpaid salary.
Restrict the employee from going, sue the employee - In this case, the company will go to the court.
It will be a very lengthy procedure.
According to the past cases, the company will have to prove that due to your layoff, the company is bearing direct costs.
Further, the courts would rule in favour of a company only if the terms and conditions mentioned in the agreement are reasonable.
Consult with LawZapo with regards to Employment Lawyers in Mumbai who can assist with matters related to Employment and Corporate Law.
Having a penalty clause in the agreement makes it unenforceable since it is not a reasonable term.
So generally the company will be able to recover training costs only.
This option is exercised only when the employee is very highly resourceful or employee is at a high ranked position.
Recommendation:
In maximum cases, Option B takes place. So you need to plan your exit smartly so that your salary cannot be withheld by your employer.
However, you are at risks only if you are positioned at a very unique post and there is no replacement for you in the market or maybe if your services are highly important for the company projects and without you they will not be able to continue the projects.
Then the company will never sue you since the legal costs are too high to keep spending it on every employee who leaves.
If you think your post can be replaced easily, the best thing is you may try writing an email to the company, mentioning a notice period and ask them to permit layoff.
Mutual understanding is the best way to solve problems.
One problem will be that, it will be difficult to get experience letter and employment relieved letter which is actually asked for by various companies, when you join them, as a documentary evidence.
Conclusion:
Even if he has agreed on an employment obligation to serve the employer for a specified period of time, the worker has the right to quit from his job. As stated in the Contract Act of India, the bonds cannot be implemented as they are regarded as trade restraints. Many employees have breached these obligations in the past and have used diverse means: In such circumstances, companies: Allow get more info your employee to go, take no action - you won't lose anything, the corporation will release you in this circumstance.
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