Bonds taken by employers
Employers take a bond from employees at the time of joining or thereafter.They then hold the employees to ransom. They do not accept the resignation and so, the employee is unable to get into a new job.The employers demand a few lakhs or ask him to serve the company/PSU for 5-10 years.
Sometimes, even higher qual acquired during the course of emplt at employee’s cost , is not considered and he is made to work in the lower grade for 5-10 years.This is plain harassment.They do not take back the papers, ID cards etc and try to pressurise/threaten, the employee to stick on to work with them.
There are HC/SC verdicts which state these bonds are illegal. Despite these, the companies insist on taking the bonds.Why is there no body to check and rule these invalid instantly???
I would be glad if an experienced adv advises on the matter.Preferably with case details.
Thank you
Sekar 19/11/13
1 Reply
The Supreme Court of India in Niranjan Shankar Golikari v/s The Century
Spinning and Manufacturing Company Ltd. (1967 I LLJ 740) observed that
restraints or negative covenants in the appointment or contract may be valid if they
are reasonable. A restraint upon freedom of contract must be shown to be
reasonably necessary for the purpose of freedom of trade. So, it will depend upon the exact terms of the employment contract and would be governed by the provisions of The Contract Act. However, you may seek expert advice on this issue and for that purpose you can log on to www.lawkonect.com which helps provide a lawyer based on the specifications given by you.