Left job without intimation after 8 months can legal action be taken?

684 votes

An employment bond is a contract, and therefore would be subject to the provisions of the Indian Contract Act. An employment bond prevents employees from committing certain acts and thus comprises of some negative covenants (A bond covenant preventing certain activities, unless agreed to by the bondholders. Also referred to as "restrictive covenant".)

The issue here is whether these negative covenants are legally enforceable.
The answer is yes.
Under contract law, a contract is invalid if it has been made by subjecting the other party to coercion, fraud, misrepresentation, or undue influence. A contract will also be invalid if it has been by mistake. However, an agreement that is entered into with free will; and without any of these invalidating criteria, is valid and legally binding.
The law of contract states that any agreement in restraint of trade or practice can be challenged. Accordingly, the terms and conditions of a contract that prevent an employee from joining another organisation would be invalid.
However, the law allows for reasonable terms and conditions to be laid down in a contract. While an employment bond is being drafted, it is important to ensure that the stipulated terms and conditions are reasonable and valid. For instance, the period of time for which the employee is obligated to work with the organisation and the compensation payable in case of its violation cannot be unnecessarily harsh and must be justified.
The Courts have laid down a two-fold principle while approaching this issue:
The interests of the employers must be considered, and they must be compensated in case of a breach of contract.
The penalty that may be imposed on an employee or his guarantor cannot be exorbitant and unreasonable.
There have been several cases where the court has held that under certain circumstances, an employer is entitled to prevent the employee from joining another organisation. For example, if there is a possibility that the employee may reveal trade secrets of company A to company B, company A is entitled to prevent such employee from joining company B.
How are damages payable by an employee calculated?
In the event of breach of a contract, courts calculate damages by taking into account the actual loss that is borne by the employer. Actual loss suffered by the employer includes the expenses incurred in employee training and the loss suffered by violation of mandatory serving period stipulated in the employment bond.
In view of the above considerations, it is safe to conclude that contrary to the popular notion, employment bonds are not inherently void or invalid. Their enforceability depends upon the terms stipulated by them which, if not excessive or unreasonable, are perfectly capable of being legally enforced.
Thus, as per your query if the said employment bond is unreasonable in nature and as you were facing difficulties, the said bond is not legal in your case. Also, you can approach labour court for such harassment at workplace by your boss.

Advocate Siddhant Sharma LawRato

814 votes

yes. you should approach to factory inspector for the same cause. fi they are not providing the overtime wages you shall also made petition to government labour office . they have breach the provisions of the factory act for the purpose of health, working hours also.otherwise you can also file a complaint in labour court also.

LawRato LawRato