Hi everyone, I need help on the 'Force Majeure Clause' to be incorporated in an employment agreement. Please help!
From India, New Delhi
From India, New Delhi
Dear Sdhars,
Force majeure is defined as a natural and unavoidable catastrophe that interrupts the expected course of events. In simple words, force majeure is act of god.
Nothing wrong if the force majeure clause is inserted in the employment agreement. However, what exemption has been sought by either party has to be clearly mentioned. For example, suppose your company hires a civil contractor to carry out some building repair work. The work was to be completed in 15 days. However, during the work, the state government declared the lockdown and the contractor could not complete the work in the assigned time limit. He could not complete it because execution of the work was beyond his scope. Therefore, he can invoke the force majeure and ask for the extension of the time limit to complete the work.
If the force majeure clause is inserted in the employment agreement, then what benefits employer will have? Is it immediate termination? However, please make sure that this clause does not conflict with the labour laws of the state in which your company works.
Thanks,
Dinesh Divekar
From India, Bangalore
7736Force majeure is defined as a natural and unavoidable catastrophe that interrupts the expected course of events. In simple words, force majeure is act of god.
Nothing wrong if the force majeure clause is inserted in the employment agreement. However, what exemption has been sought by either party has to be clearly mentioned. For example, suppose your company hires a civil contractor to carry out some building repair work. The work was to be completed in 15 days. However, during the work, the state government declared the lockdown and the contractor could not complete the work in the assigned time limit. He could not complete it because execution of the work was beyond his scope. Therefore, he can invoke the force majeure and ask for the extension of the time limit to complete the work.
If the force majeure clause is inserted in the employment agreement, then what benefits employer will have? Is it immediate termination? However, please make sure that this clause does not conflict with the labour laws of the state in which your company works.
Thanks,
Dinesh Divekar
From India, Bangalore
I am unable to understand/appreciate how the 'Force Majecure' clause would apply in employment contracts.
As explained by Dinesh Sir, the FM clause is only to help a party to the contract to tide over a situation going beyond control for the time being. It will help the affected party to a contract to defer the execution of the contract suitably without incurring legal liability as a result of an FM situation. FM is typically included in all commercial contracts. There is a universal acceptance that as a result of Covid -19 pandemic, the FM applies and in this period the contractual obligations are excused.
In a contract of employment from the side of employer FM could be thought off to deny any obligation in case of deferment of joining any prospective employee.
From India, Mumbai
As explained by Dinesh Sir, the FM clause is only to help a party to the contract to tide over a situation going beyond control for the time being. It will help the affected party to a contract to defer the execution of the contract suitably without incurring legal liability as a result of an FM situation. FM is typically included in all commercial contracts. There is a universal acceptance that as a result of Covid -19 pandemic, the FM applies and in this period the contractual obligations are excused.
In a contract of employment from the side of employer FM could be thought off to deny any obligation in case of deferment of joining any prospective employee.
From India, Mumbai
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