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Benefits to Employees Breaking Contract
Human Resources » Policies & Samples

Chrm Message From: bindu Total Posts: 59 Join Date: 18/08/2006
Rank: Manager Post Date: 26/06/2007 10:31:01 Points: 295 Location: United States

Dear Friends, 

Can somebody please inform me about the recovery of  benefits sanctioned to an employee who breaks a contract ? For example if an employee is supposed to  receive air-fare (for entire family) for joining a  company for 3 years and at the end of the contract  the employee is to get return airfare, what happens if  the employee terminates his contract after one-year ?  Does he get only one-third of the amount paid to him or  does he receive one-third of the total air-fare due  to  him ? Thanks so much.

Awaiting for your earliest responses



Chrm Message From: tesmian Total Posts: 63 Join Date: 18/08/2006  
Rank: Manager Post Date: 26/06/2007 10:32:14 Points: 315 Location: United States

Legally speaking you can recover the full amount which the company has spent on honouring the contract. If the company has paid one way air for joining duties, it cannot recover the amount for the return fare which the employee may have not utilised. However in such cases the good companies take a lenient view depending upon degree of contribution of the employee during the period of association with the company and sometime waive of such recovery.


Chrm Message From: shawn Total Posts: 40 Join Date: 18/08/2006  
Rank: Executive Post Date: 26/06/2007 10:33:32 Points: 200 Location: United States

Hi Bindu,

The content of contract plays an important role in making a prima facie decision about the recovery of amount from an employee.

There may be some signing amount or bond amount which an employee has submitted
to an employer that amount can be calculated on %age basis with these 3 years.

A contract is that if employee fulfill all the terms and conditions otherwise it is broken. So employee should not receive even one third of amount.

I shall appreciate other's suggestions on this.

Have a nice day!


Chrm Message From: craig Total Posts: 37 Join Date: 18/08/2006  
Rank: Executive Post Date: 26/06/2007 10:35:03 Points: 185 Location: United States

please note that the meaning of the term BOND or CONTRACT itself reveals that the advantage or the benefits can only be claimed if he/she (employee) completes or fulfills all the terms and conditions of the contract or bond.

if any of the conditions is left unfulfilled, the contract is broken. then it depends on the mere discretion of the employee or the payee. The wordings in the contract also matters which, if states, clearly that the incumbent is supposed to get the amount on proportionate basis, then only he is eligible for the same. otherwise not. do let me know about ur views on ur comments or what u have concluded from the suggestions u have got from the web on this matters of yours.


Chrm Message From: srini Total Posts: 163 Join Date: 18/08/2006  
Rank: Leader Post Date: 26/06/2007 10:35:50 Points: 815 Location: United States

no the employee should not be given any money because he is breaking a contract and due to breach of the contract he is not liable to any money.



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