Hi Dipak,
There is no legal law however most offer letters have it mentioned that you cannot work in any other company or start your own company while employed.
I would suggest you start your placement firm, with someone else handling the operations of the firm. It would be better you keep your Business secret till it is stable.
From India, Mumbai
6There is no legal law however most offer letters have it mentioned that you cannot work in any other company or start your own company while employed.
I would suggest you start your placement firm, with someone else handling the operations of the firm. It would be better you keep your Business secret till it is stable.
From India, Mumbai
Dear All, Can some one help me in explaining diffrence between Service Agreement, Bond, Contract Preeti
From India, Pune
From India, Pune
Dear friends
Some one has asked for the difference between a contract, service agreement and Bond. Let me try to explain
1. Contract
It is an agreement between two or more parties to do or not to do an act for consideration.
In India we are governed by the Indian Contract Act
Most important aspect of the contract is the term consideration.
To examine the legality of any contract, one of the most important points to be examined is whether the Consideration agreed is permissible under law, and whether it is executionable by the concerned party.
For example, I enter into a contract to sell my house for a consideration of say rs 5 lakhs with a person whose age is above 18, it is a valid contract. Suppose the consideration is that the person shall get her daughter married with my son, then the consideration is not valid
The person who signs this agreement can not execute this consideration hence it is void. We can give more examples.
Employment terms, service agreements
etc all fall under the definition of contract and guided by this law
Service Agreement
Any agreement between two parties for providing service for a consideration is a Service Agreement. Here, in this context, an employee agrees to serve a company say for three years and the consideration is the expenses for higher education will be borne by the company This is a service agreement.
A fresher signs a service agreement for three years for a consideration of company imparting him training for one year is a service agreement
A company asking for service agreement from an employee for training a person abroad is also a service agreement
In these cases explained to me, they are contracts under Indian Contract Act or under the Contract Acts of respective countries.
Generally contracts are written documents. Oral contracts are also permissible. Only difficulty in oral contract is it may be difficult to prove in the court of law if there is a dispute
Bond
I am not very sure about the origin of this word BOND . Bond is usually referred to gurantees given by third parties in case of failures
In money market, Bonds are commonly used. Reserve Bank issues Bonds
When Reserve Bank issues Bonds, it gurantees repayment
Since these service contracts were signed in a Stamped paper and gurantees some payment probably they were referred to as Bonds. I am not very clear about it.
Bond as we use is sort of slang for service agreement not equivelent to Bonds used in money market
Siva
From India, Chennai
Some one has asked for the difference between a contract, service agreement and Bond. Let me try to explain
1. Contract
It is an agreement between two or more parties to do or not to do an act for consideration.
In India we are governed by the Indian Contract Act
Most important aspect of the contract is the term consideration.
To examine the legality of any contract, one of the most important points to be examined is whether the Consideration agreed is permissible under law, and whether it is executionable by the concerned party.
For example, I enter into a contract to sell my house for a consideration of say rs 5 lakhs with a person whose age is above 18, it is a valid contract. Suppose the consideration is that the person shall get her daughter married with my son, then the consideration is not valid
The person who signs this agreement can not execute this consideration hence it is void. We can give more examples.
Employment terms, service agreements
etc all fall under the definition of contract and guided by this law
Service Agreement
Any agreement between two parties for providing service for a consideration is a Service Agreement. Here, in this context, an employee agrees to serve a company say for three years and the consideration is the expenses for higher education will be borne by the company This is a service agreement.
A fresher signs a service agreement for three years for a consideration of company imparting him training for one year is a service agreement
A company asking for service agreement from an employee for training a person abroad is also a service agreement
In these cases explained to me, they are contracts under Indian Contract Act or under the Contract Acts of respective countries.
Generally contracts are written documents. Oral contracts are also permissible. Only difficulty in oral contract is it may be difficult to prove in the court of law if there is a dispute
Bond
I am not very sure about the origin of this word BOND . Bond is usually referred to gurantees given by third parties in case of failures
In money market, Bonds are commonly used. Reserve Bank issues Bonds
When Reserve Bank issues Bonds, it gurantees repayment
Since these service contracts were signed in a Stamped paper and gurantees some payment probably they were referred to as Bonds. I am not very clear about it.
Bond as we use is sort of slang for service agreement not equivelent to Bonds used in money market
Siva
From India, Chennai
Dear DK,
If your friend is not ready to pay the amount fixed by the company, then based on the companies version before the court, court can order to pay the penalty and imprisonment can be given to him. It can be treated like a breach of contract.
Regards,
Vasu
From India, Hyderabad
If your friend is not ready to pay the amount fixed by the company, then based on the companies version before the court, court can order to pay the penalty and imprisonment can be given to him. It can be treated like a breach of contract.
Regards,
Vasu
From India, Hyderabad
Well friends I believe he should do what is ethical...
Life is a boomerang.. What goes around comes around...
No company has the time to sue individual candidates unless he is in a top notch position. However if your friend has agreed upon the 3 year bong he should ethically abide by it. Incase he is facing any issues with the company he should consult the HR and sort out the issue.
From India, Mumbai
Life is a boomerang.. What goes around comes around...
No company has the time to sue individual candidates unless he is in a top notch position. However if your friend has agreed upon the 3 year bong he should ethically abide by it. Incase he is facing any issues with the company he should consult the HR and sort out the issue.
From India, Mumbai
Dear Deepak,
I am slightly differ from the opinions of other members, There is some provision in standing order of Industrial employement act, that you cannot do the activiies like doing job on other company which affect the first employer from the same.
There is strong legal stand against this.certain cases also held in the court also where employee have to face adverse situation.
For more details please refer the standing orders in Industrial Employement act.
Regads
Ranjeet
From India, New Delhi
I am slightly differ from the opinions of other members, There is some provision in standing order of Industrial employement act, that you cannot do the activiies like doing job on other company which affect the first employer from the same.
There is strong legal stand against this.certain cases also held in the court also where employee have to face adverse situation.
For more details please refer the standing orders in Industrial Employement act.
Regads
Ranjeet
From India, New Delhi
But I m not going to start any company related to my employer plz consider this also n suggest me more
From India
From India
Hi Deepak,
Even though you plan to start a different venture then where you are currently employed...
The HR has a funda... Quite right as well.. That you wont be able to concentrate on your current job. A full time employee for a company virtually accounts for an entire day. Including your off work hours. Most companies would rightly fear you giving less than 100% at work reducing productivity.
It is better you do not mention your business to anyone.
At the most you can mention that your friend or relative is opening up a consultancy and you put in your inputs.
Provided you put in your work hours, I doubt if your current company can have any objection.
From India, Mumbai
Even though you plan to start a different venture then where you are currently employed...
The HR has a funda... Quite right as well.. That you wont be able to concentrate on your current job. A full time employee for a company virtually accounts for an entire day. Including your off work hours. Most companies would rightly fear you giving less than 100% at work reducing productivity.
It is better you do not mention your business to anyone.
At the most you can mention that your friend or relative is opening up a consultancy and you put in your inputs.
Provided you put in your work hours, I doubt if your current company can have any objection.
From India, Mumbai
Hi ,
There is no such legal obligation to the job you have mentioned . if your friend to be forced for the job he should have signed physically some bond and that too should be in stamp paper only then it's possible to sue under law.If he leaves the concern office he will be forwarded a legal notice alone. It's said as breach of contract to be clear it is a bonded labour system. The reason behind the bond is to create pressure on the employee and to avoid the loss caused ordinarily without bond in situation when the there is a long term of vaccancy.
There is no such legal obligation to the job you have mentioned . if your friend to be forced for the job he should have signed physically some bond and that too should be in stamp paper only then it's possible to sue under law.If he leaves the concern office he will be forwarded a legal notice alone. It's said as breach of contract to be clear it is a bonded labour system. The reason behind the bond is to create pressure on the employee and to avoid the loss caused ordinarily without bond in situation when the there is a long term of vaccancy.
Dear Sivaa,
Thanx for your valuable information about ' Service Agreement, Contracts and Bonds'.
In my last organisation as per mnagament's order to safe gaurd company interest an employess has to sign a 'service agreement' that included clauses, as follows
1) Safety of company asset and confidentialty of Data
2) Exit Clause: upon leaving the orgnisation Employee shall not able to join any orgn engaged in similar or related business without NOC form the director of company. This is for 6 months form the date of leaving.
Breach of clause can lead to legal proceedigs.
In this case 1st clause is acceptable but in 2nd clause am not sure, accpet for putting pressure on employees if it has any legal viability.
More over this is 1 sided , where there is commitment from employee's side but none form employer. Can we term as 'agreement'.
Pls comment on this....
Preeti
From India, Pune
Thanx for your valuable information about ' Service Agreement, Contracts and Bonds'.
In my last organisation as per mnagament's order to safe gaurd company interest an employess has to sign a 'service agreement' that included clauses, as follows
1) Safety of company asset and confidentialty of Data
2) Exit Clause: upon leaving the orgnisation Employee shall not able to join any orgn engaged in similar or related business without NOC form the director of company. This is for 6 months form the date of leaving.
Breach of clause can lead to legal proceedigs.
In this case 1st clause is acceptable but in 2nd clause am not sure, accpet for putting pressure on employees if it has any legal viability.
More over this is 1 sided , where there is commitment from employee's side but none form employer. Can we term as 'agreement'.
Pls comment on this....
Preeti
From India, Pune
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