The Bonded Labour Act has been abolished

I don't think there is any provision for the same......... bese pata chale to mujhe bhi batana Plz...............

Yes.. Riya...... there is a provision..... One can not enforce anybody to stay in his org.. ya there are few exceptions also......like other acts........

Hi Viral,

My name is Abhay. I am doing my MBA in HR. I need some more information related with the Bond. I also feel that if an organization is spending money in training their employees & developing their workforce, then it is bit batural that an organization will expect more efficient work & progress from their employees & not that the employees are leaving organization after taking training & all.

What you say about it?


Character is like a tree & reputation is like a shadow. The shadow is what we think of; but the tree is the real thing. Abraham L.

Viral

We have implemented the concept of bond in my previous organization and we have successfully implemented this. In case of people leaving the organization without any notice / absconding the employment, we used to send them letters / hunt them or talk to their current employer and see that he responds to us

We have made the people cough up the bond amt. of Rs. 2 lakhs + training charges till his/her last day in the organization

This we used to make it possible by making them sign a two years of service agreement with the company, duly signed by a surety and we used to collect the photocopy of any document worth Rs. 2 lakhs (Like land / plot / flat / building / fixed deposits). We used to check the authenticty of the documents and give him the appointment. The candidate was never taken into the company if any one of the formalities are not met. Above all, if the candidate is no position to give any one the above documents, we used to take a undated cheque for Rs. 2 lakhs from the employee

This has seen that the turnout to be less, but as you know, people still find ways to go out

1. whther a bond is valid or not- No. bond is not valid in terms of service. No act , principle of law and jurisprudence supports it and its concept. Bond is an act in terrorem just like penalty ( penalty is not recognised in India).

2. Employer spending money for development- In the eye of law employer is spending his money for the improvement of his human resources for better quality of production or service and NOT for the individual role or its improvement. Therefore employer can not come before the court and claim that it was done for the betterment of the employee.
Another aspect in this matter is that the relationship. if you explain the sections of the indian evidence act , u will find that where a relationship lies between two persons of dominant nature ( Master-servant, employer-employee, teacher-student) in their respective feild of work, the benefit of doubt goes to the weaker one.

3. Way out- Bond can be transformed intoa service contract. Say u will work for this co. for 5 years and will get the following benefits......

The benefit is that its breach is actionable in court and also punishable.
its legal since it comes within contract act.

I have implemented in my organisation and its ok.

any doubt ..........objection.........counter claim...............advice?

saikat dhar

Thank you very much to all of you for such valuable informations.

Dear saikat dhar and all my frnds........

Thanks for ur valuable opinion....... My another query is if any employer has taken a bond from an employee and there is a clause for loyalty reward........after completion of bond ..... Now in that case if employer refuse to pay that amount what should employee do against employer???? can he file a suit to recover his money....... before the civil court?? or where else can he file the suit.....and is there any time limit for that???

Thanx in advance.......& waiting for ur valuable reply.......

thank you mate

Hi All,

Very interesting topic to discuss...

As discussed bonded labour system has been abolished, no employee is bound by any contract to serve the company. But if a bond is signed between employee and employer, which is a valid contract between parties, which specifies the employee has to pay the training cost if he leaves the company within any specific/ reasonable period. Its construed as valid agreement.

The employee has to pay back the training cost, if he want so break the bond. Here its not a bonded labour, its a compensation for the loss incurred by an party.

Rgds,
Suresh Ramalingam

Dear Friends,
I guess here we are confusing Bond with bonded labour act, the type of 'Bond' which we are discussing in the forum will be in purview of simple agreement laws and will be convered in Contract Law.
And breach of such bond/agreement can be very well attract legal action under the Contract Act.
This is my opinion and understanding, others are welcome to put their inputs on this.