Arbitration Record Work

III. Simulation Vijay and Shah Food Court Pvt.Ltd

3. Mr.Vijay is a well-known chef. He entered into an employment agreement with Shah Food Court Pvt.Ltd.,(SFC) a well-known restaurant in Hyderabad. He is employed by SFC for 6 years at a salary of 4 lakh rupees per month with a yearly hike of 15%. According to clause No.7 of their agreement he cannot work for any other company or firm or business enterprise in any capacity in any part of the country during these 6 years.

It is remarkable here that SFC Business is confined to Hyderabad city only.

After one year unfortunately it is identified that Mr Vijay’s Son has suffering with Autism. His Doctors and family members advised him to shift his family from Hyderabad to Chennai to provide better treatment to his son.

Mr Vijay approached hotel management to repudiate the contract, Hotel management demanding to pay 10 lakhs rupees for repudiation of contract. Vijay wants to take the help of Hyderabad Chefs Association to mediate the issue.

Mediate the matter.

SOLUTION:

In this scenario, Mr. Vijay, a well-known chef, has entered into an employment agreement with Shah Food Court Pvt. Ltd. (SFC) for 6 years at a salary of 4 lakhs per month with a yearly hike of 15%. According to clause No.7 of the agreement, he cannot work for any other company or firm in any capacity in any part of the country during the 6 years of his employment. However, after one year, Mr. Vijay's son has been diagnosed with Autism and his family has to relocate to Chennai for better treatment. Mr. Vijay wants to repudiate the contract, but SFC is demanding 10 lakhs rupees for it. Mr. Vijay wants to take the help of Hyderabad Chefs Association to mediate the issue. Here are some steps that could be taken to mediate the matter:

  1. Meeting between Mr. Vijay and SFC: The first step would be to hold a meeting between Mr. Vijay and SFC to discuss the issue. Mr. Vijay should present his reasons for wanting to repudiate the contract, and SFC should be given the opportunity to respond.

  2. Mediation by the Hyderabad Chefs Association: If Mr. Vijay and SFC are unable to reach an agreement during the initial meeting, they can seek the help of the Hyderabad Chefs Association to mediate the matter. The association can provide a neutral third party to facilitate the discussion and help both parties come to a mutually acceptable solution.

  3. Reviewing the employment agreement: The Hyderabad Chefs Association can review the employment agreement and advise both parties on their rights and obligations under the contract. They can also help both parties understand the legal implications of repudiation of the contract.

  4. Considering Mr. Vijay's situation: The Hyderabad Chefs Association can help SFC understand Mr. Vijay's situation, particularly his son's health condition and the need to relocate to Chennai. They can also help Mr. Vijay understand the financial impact of repudiating the contract and the consequences of violating the non-compete clause.

  5. Negotiating a settlement: With the help of the Hyderabad Chefs Association, both parties can negotiate a settlement that takes into consideration Mr. Vijay's situation and the financial impact on SFC. This settlement could take the form of a lump sum payment or a modification of the employment agreement to allow Mr. Vijay to work in Chennai.

  6. Putting it in writing: Once the parties have reached an agreement, it should be put in writing and signed by both parties. This will help to ensure that everyone understands the terms of the settlement and is committed to honoring them.

In conclusion, mediating the matter between Mr. Vijay and SFC will require open communication, a willingness to listen to each other's perspectives, and a commitment to finding a fair and equitable solution. If both parties can work together in good faith, they should be able to reach an agreement that satisfies both their needs.



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