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Employee Service Bond - Career Growth

arun_345 Started The Discussion:

Hi all,
My friend is working as quality engineer trainee in a small company in chennai. He signed a service bond for 2 yrs.

He worked there for 15 months so far. Now he got a chance to go abroad.
But the company is not relieving him and blaming they will go to court or pay the penalty amount 2 lakhs(which is impossible for him to pay).

Is that bond that much severe. this will spoil his life. what to do.
Is the bond breakable.

And the thing they are not putting the appraisal also for him.

waiting for ur reply.

sujata1jan - Contributing Member
Hi Arun

I don't think company has that much time to spend on the person who is working as trainee. I think if your friend can speak to his future employer regarding his relieving and if they are ready to let him join without relieving letter I don't think there could be any issue after that.

Let's wait for some more advise.

Thanks
Sujata

JSF35 - Contributing Member
:D :D :D :D Find the Attachment Copy of the mail.. my Ex Boss sent to ministry of manpower Singapore.... :evil: JSF


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anu12 - Contributing Member
Hi Arun,

At the time of joining did ur friend sign any bond with the company on stam paper, if he has signed the bond which was on stamp paper & signed by the notary then the baond is valid & the company can go ahead with legal proceedings.

If he has not signed any bond then the company does not have the right to sue him to court, if fact the company will not like to spent time in leagl proceedings also.

I suggest that ask ur friend to talk to his immediate supervisor & convince him & ask him to relieve him. I don't think the company should have any problem overall no company has the right to stop a employer from leaving his or her job.

Rgds,

Anu
HR Officer
Hyderabad

ankit100in - Contributing Member
Hi Arun,

Your friends future depends entirely on how has the Bond been written by his present employer. Remember, if wanted, employers can very well sue a present employee/trainee.

As one of of our freind has suggested, your friend can join the new organisation without any relieving letter. However, that will debar your friend in having any experience certificate (releving letters are primarily considered as experience certificate).

The only way out is to talk out the matter with the present empoyer and convince then that a de motivated employee will not be a productive resouurce for a company.

However, then it can very well be debated that then why there is any Bond at all?

The main issue here lies in your friends decision to look out for a job when he/she was under a bond.(Obviously without searching or applying, he wil not get the option, and if so, then he / she must be very efficient in his / her work and it might be for that reason that his present employer is unwilling to let go of him/her).

Lets wait for other respoinses.

Regards
Ankit Banerjee

Dear Arun,



I wish to clarify 2 things to you and to your friend.

1. Your friend and you (on the shoes of your friend) looking at your angle only. Come out from that think on Company side. It recruited you (that is your friend) at the time his Oversease Employer not willing to offer him a job. The Company groomed him through its training, well to be a good Quality Engineer, through which only he got the present Overseas Opportunity. Think if at all he not been appointed will he get opportunity?

2. When he is fully aware of that he is under Service Agreement with one employer which is going to be over in 24 months, why he attended interview for another job opportunity within 15 months? is that Ethical? is that good professional will do?

If you and your friend, is not agreeing the above (obviously, people will not accept the truth if they are in one trip) you have lot of ways to skip the service bond. Especially in India Labour Bonds will not be valid and No Employer can exercise their power to claim exorbitant compensation (2 lakhs) as they need to support heavily. I am writing this as a Lawyer practicing Labour Law.

But I do appreciate one of the replies to you in this forum, No Employer is such a greedy to spoil the career growth of an Individual. Let your friend talk to his HR or Management, so that he can be relieved without Relieving Order, then everything will be solved.

You can take this as my suggestion or advise or whatsoever, kindly don't spoil the opportunity of others? you wonder how? if your friend does like that the Employer experienced on wound, definitely reluctant to take people like your friend for employment, is that your friend likes?

Judge yourself.

Jaikumar Ranganathan

poojabansal - Contributing Member
Hi Arun,

Ankit is absolutely right!!! I feel the severity of the bond depends upon the mannner it is done. If it is done with a legal support it definitely has a stand.

Another point is that he joined the company as a Trainee Engr which implies that he was a fresher. So the company has spent lot of time, money & eneergy in training the candidate & imparting him technical training. So he should ethically try to complete his tenure. Otherwise he should have thought about these issues before he started looking out. Professional ethics demands completing the tenure/ finifhing the bond formalities. May be the company may not do much against him but he no employee should spoil their relationship while quitting. it is not a good sign for future.

Your friend can also sit across the table with his immediate supeior & discuss the issue & also request some good solutions. I am sure if he request his seniors they will find a solution.

But at the end he should complete his formalities/ tenure with the company.

Regards,
Pooja

Arun,

DON'T YOU FEEL THAT YOUR FRIEND IS OPPORTUNIST ? BY THE WAY THIS NOT A MATTER TO DISCUSS AT THIS POINT OF TIME.

FIRSTLY, IF YOUR FRIEND IS SIGNED THE BOND IT IS VALID AND CAN BE USED AS A LEAGAL PAPER AGAINST HIM EVEN IF IT NOT ON THE STAMP PAPER.
SECONDLY, A BOND ALWAYS CONSIST OF SOME MONETERY INVOLVEMET IF IT IS SO THEN HE HAS TO PAY THE SUM OF AMOUNT WRITTEN IN THE BOND AND LEAVE THE COMPANY.
THIRDLY, WHETHER EMPLOYER HAS TIME TO MAKE A ISSUE OR NOT IS A SECONDERY ISSUE BUT IF HE WISH THEN HE MAY SEND TO THE BOND COPY TO YOUR PROSPECTIVE COMPANY AND CLEARLY STATE THAT HE IS STLL UNDER CONTRACT WITH US , SO IN CASE THE COMPANY WILL SIMPLY REFUSE YOUR EMPLOYMENT AND AS IT IS THE CASE OF OTHER COUNTRY SO THEY MAKE YOU BLACK LISTED ALSO.

SO PL. SEE ALL THE POSSIBILITIES BEFORE REACHING TO ANY POINT.
IT IS ALWAYS WISE TO SETTLE THE ISSUE WITH THE PRESENT EMPLOYER SMOOTHLY AND REQUEST THEM REGARDING YOUR DECIPLIND ATTITUDE DURING THE LAST WORKING MONTH AND TELL THEM ABOUT YOUR FUTURE WITH THIS PRESENT ASSIGNMENT.
I HOPE THEY WILL UNDERSTAND. IF NOT THINK TWICE BEFORE TAKING ANY DECISION.

PRANAV

PraveenIP - Contributing Member
Arun
I totally agree with Pooja and Jai,
We also face a similar situation with our employees. It is not fair for a fresher to take undue advantage of any company which has given him a break. Legally speaking many bonds in India are one sided and dont stand good in the court of law. But it is ethically not correct to break bonds as the company which has given a break to a fresher spends the first year in training the employee and it is the second year in which the employee needs to repay by executing his job perfectly.

You also need to check if the company has provided your friend all the perks and benefits and also given him the annual hike inspite of his having a bond. If a company has given him all these benefits then he has to honour his bond which he has signed with full knowledge of the clauses in the bond.

If your friend still leaves the company then the company will alter its recruitment policy towards freshers and this will harm the future of 1000's of freshers who will find it difficult to find employment.

Please keep in mind that we need to inculcate a sense of discipline and honesty in all youngsters to develop into a great nation. We are the Nation and we need to do it ourselves rather than wait for others to do it.

Regards
Praveen

Hi Arun,

As the other persons said it depends upon the matter wt is written in the bond and is it been attested notary if so no use better ask ur friend to talk to the employer about this if it is just a stamp papper it is not valid in any court as there is rule that no employer is suppose to get a bond from the employee.

kalpana
HR Officer

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