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Employees violating the bond clause in the Agreement what to do.


07-Dec-2023 (In Corporate Law)
We Ingenious e brain solutions is organization based out in Gurgaon and is register under the company ACT. We at Ingenious e brain Solutions as a general practice takes an undersigning of Bond from the employees with reference to the employment time which vary from employee to employee based on the mutual concern and is usually of 1 to 3 years. We have quoted a amount in the bond document in case the employee break the bond and the bond can be nullified on mutual concern of both the parties. In recent experience we had two to three employee who has violated the bond and they left the organization without prior notifications and even they have not served the notice period. As a clause we have mention that they are not going to join a competitor and one of the is working with one of our competitor. We look forward for your assistance in this matter. We as an organization would like to take strict action against the employee so that this could not be a general practice for
Answers (3)

Answer #1
933 votes
Hello, I have reviewed your query and fully understand your concerns as an organization. I have over 9 years of experience and having dealt with similar issues for various organizations across India, I would be happy to review your employee contracts and advice you on the issue. If you would like to consult me on this matter please feel free to set up a meeting.
Answer #2
623 votes
In the event you have a condition in the employment letter of employee that he shall not work with competitor, that is a valid concern and you may be able to enforce such clause, and restrain the said employee from joining the competitor and if he has already joined you may seek damages on account of your confidential information being handed over to competitor, and loss being caused to you on that account. As far as issue of stopping an employee from leaving your organization through bond is concerned, legality of same may have to be ascertained from the contents of agreement you may have executed with the employee. While you may not be able to restrain anyone from taking any another employment but still you may be able to do that in case you have a training agreement, and you have to recover the costs. For more information you may contact me.
Answer #3
612 votes
Issue show cause notice at first instance. Then send a general notice stating the irregularities and non compliance of breach of terms and conditions of the employment contract. Ask your lawyer to send legal notice. If the employee does not respond as per the terms and conditions then file a recovery suit against the employee.

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