I had signed a 12-month bond and decided to start my own business after three months. In the past, I have worked for companies that had similar obligations and were not able to complete the entire mandate, but no action was taken. However, this organization sent a legal notice to pay 2,00,000 fines, which is 1,000% higher than my salary. No company tends to go to court for these cases, so what are the chances of that happening in this case? As already mentioned, the conditions set out in the employment relationship should be reasonable to be valid and even if inappropriate conditions/clauses are defined in the contract, such as.B. the imposition of an exorbitant duration of compulsory employment or a huge penalty for the worker, the court will only award compensation if it finds that such an offence has caused harm to the employer. As a general rule, the Tribunal considers the actual costs incurred by the employer, the duration of the worker`s service, the conditions set out in the contract to determine the loss suffered by the employer in order to obtain the reasonable amount of compensation. Thus, in Sicpa India Limited against Shri Manas Pratim Deb,8 the applicant had incurred a cost of DER 67,595 for training to the defendant for whom a work loan had been concluded, under which the defendant had agreed to serve the complainant company for a period of three years or to pay INR 200,000. The worker left his employment within two years. To enforce the agreement, the employer was brought to court, which acknowledged an amount of INR 22,532 to compensate the worker in the event of a breach of contract. It is important to note that, although the loan provides for a payment of INR 200,000 as compensation in the event of breach of contract, the judge had taken into account the employer`s total cost and the worker`s service time when deciding on the amount of compensation.
Since the defendant had already completed two years of service during the agreed three-year period, the judge divided the total cost of INR 67,595 to the claimant into three equal parts for a period of three years and awarded an amount of INR 22,532 as reasonable severance pay one year before the agreed period. Similarly, in Satyam Computers against Leela Ravichander,9 the High Court of Andhra Pradesh had also reduced the amount of compensation by taking into account the worker`s duty time. . . .