Tata Consultancy of Bombay, India, is an international computer consulting firm.

Question

Tata Consultancy of Bombay, India, is an international computer consulting firm. It spends considerable time and effort recruiting the best personnel from India's leading technical schools. Tata employees sign an initial three-year employment commitment, often work overseas, and agree to work for a specified additional time when they return to India. Desai worked for Tata, but then he quit and formed a competing company, which he called Syntel. His new company contacted Tata employees by phone, offering higher salaries, bonuses, and assistance in obtaining permanent resident visas in the United States if they would come work for Syntel. At least 16 former Tata employees left their jobs without completing their contractual obligations and went to work for Syntel. Tata sued. What did it claim, and what should be the result? I need this answer in IRAC order please. Thank you!

Explanation / Answer

Issue - Leaving of Tata employees without completing obligation of the work contract that made them bound to do three years work at the company, to join a lucrative prospect.

Rule Explanation - Breach of employment contract.

Application: The 16 Tata employees breached the conditions of the contract, which forced an obligation on them to work for at least three years. The plaintiff sues them to recover damages for the economic and other losses the company incurred due to this unplanned event.

Conclusion : The defendants are guilty of breach of contract by not fullfilling their obligations as laid down in contract. The plaintiff can claim damages from them according to the conditions addressing the event of breach of contract in the employment agreement.

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