What are the provisions related to service agreement and surety bond ?

634 votes

Generally as per the agreed terms of contract the conditions will prevail upon which are legally enforceable before the court of law. However, some exceptions can be carved out basing on the circumstances and various facts & a perusal of the contract agreement is a must to understand and give an exact opinion.

Advocate Vikram Chandra LawRato

959 votes

Such bonds are applicable only if the company has spent money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better. As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Employment Bonds are one sided. Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices. In India Bond is illegal in relation to employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit and minimum punishment under this act is two years.
The Hon. Supreme Court of India and several High Courts have clearly stated in a number of cases that no employee can be forcefully employed against his will, just because he has signed a contract with the employer and that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.

Advocate Soumil Kandukuri LawRato