Employment bond

Question

► My friend is currently working in a major e-commerce tech company in India under an employment bond of 5 years it's been 3.5 years now. The company wants to relocate him to the US for a project, but he has been diagnosed with severe clinical depression and has a continuous psychiatric treatment record stating he is medically unfit to travel. The company previously won an interim court directive regarding relocation, but his health has since worsened. He is currently underperforming as a Team Leader in India due to his illness. If his name is put on the next travel batch and he refuses to board on medical grounds, what are the legal consequences under the Indian Contract Act? Can the company legally enforce the full bond penalty if they choose to terminate him for low performance?"

Answer 1

Dear Client,

An employment bond does not necessarily guarantee an employer of the right to claim the total value of the bond simply because the worker cannot fulfill his obligation under the contract. According to the Indian Contract Act of 1872, the courts will typically recognize only reasonable compensation for losses suffered by the employer as a result of the breach of the agreement, and cannot sanction excessive or punitive bonding. Your friend needs to get in touch with the employer immediately in writing to explain his condition and provide him with all necessary medical documentation and ask for an alternative job that is more suitable to his medical condition in India. In the event of dismissal from work either due to poor performance or due to decline to travel, it would be vital to know the enforceability of the bond taking into account different factors such as the terms of the bond, actual loss suffered by the employer and others.

I hope this helps and if you have any further issues do not hesitate to contact us.

Employment bond

1 Answer