Table of Contents
What is Section 27 of Indian Contract Act?
Section 27 of Indian contract Act, 1972 states that, “Agreement in restraint of trade, void – Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. Exception 1. – Saving of agreement not to carry on business of which goodwill is sold.
Is job contract legal in India?
Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation. Additionally, the penalty or compulsory employment period stipulated should not exorbitant.
What happens if an employee breaches their contract?
Breaching your employment contract may well result in a disciplinary process, which may eventually lead to your dismissal. Although an employer can also pursue you for damages, this can only be in respect of financial loss which they have suffered as a result of your breach.
Can an employer sue employee for breach of contract?
So can an employer sue an employee for breach of contract? Yes. If your employee breaches a contract with you, it can cause your company to suffer financial loss. When this happens, you have the right to sue.
Can we take leave in notice period in IBM?
As part of the IBM employment contract, employees are required to serve 30 days (probation/FTH employees) or 90 days (permanent employees). At the time of separation, if employees do not serve the required notice period, the manager can decide to recover or waive the un-served notice period.
What is the notice period for leaving IBM?
If you plan to leave IBM in your probation or bond period, the notice period would be one month. The official notice period of IBM is 3 months.
What happens when a company gives you a bond when you leave?
Frankly Speaking, if you are leaving the company with a good reason and if you are leaving on a good note ( try not to be absent/absconding from work without any information), then nothing happens. Comp’s use the bond to scare the employee as the company spends a fortune to make its employee industry ready.
Can a bond between a company and an employee be executed?
Actually speaking, any bonds between company and employee which curtail basic fundamental rights of individual are illegal and can not be executed. In this case the Bond in my opinion is illegal and can not be enforced.