falgunikumar Started The Discussion:
Hi All

I have seen cases where companies are taking bond from freshers, experience persons and onsite perons..

What I Know about the market

1) Freshers: Companies are talking bond from the freshers for a period of 2 to 3 years.

2) Experience Person: Bond for a period of 1 year to 2 years.

3) Onsite Employees: Bond for a period of 6 months to 2 years.

Is it legal to take bond from an employee.. In this was are the companies are not blocking their career growth.

Please share some views on these....

Member Opinions In This Discussion
India, Malappuram
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India, Bangalore
Legal Counsel
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India, Bharat
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Hello friends

There are no replies on this ????? Please help me out if any one has some idea on this..

I am drafting one policy and it is one thing which can be one of hte issue in it...

some courts in india have held bonds to be illegal since it restricts the employees freedom to work freely/practise his profession - however this is usually when the 'bond period' is open ended.
for specific time period of 1-2 years - it may be allowed by courts since companies use time/resources to train employees - who then run off to other greener pastures.
i guess one wont know till one goes to court - but in the other course- companies like infosys, wipro, tcs - have all been having bonds
so you can safely assume that it will not be challenged.
i was working with an automotive company since july 2007... i signed a bond which said that i was on training for one year and then after one year i'll be made permanent or may be my training will be increased depending upon their choice....it was completely one sided bond and it said that even if company removes me then also i'll have to pay 2 lakhs....there was not a single point written which was for my benefit....in short, a one sided bond.....now when i have stopped going after resigning i fear that they might take me to court....and ya, i didnt sign d bond...they forced me to sign it and blackmailed me....i have left because i am going for higher studies.....somebody plz help me what should i do....??????
Dear friends,

Courts in India in several cases have held that service Bonds signed by employees are against the provisions of Section 27 of Indian Contract Act and hence not binding. I am attaching a copy of a recent Article written by advocate of Supreme Court for your ready reference.

Attached FilesProvided by community member pca. Register to join your network of peers.
File Type: pdf Negative Covenant in Contract of Employment.pdf (108.5 KB, 9805 views)
Bonds are supposed to be mutual agreements.
there have many cases of bonds being violated and the companies taking the 'errant' employee to the court and the honourable court...deciding in favour of the either parties on the basis of the specifics of the case.
my advice would be go in to reading the specific cases and then formulating your policies accordingly. a lawyer or a qualified person HAS to frame the language.
Courts are not to be feared but used to avail Justice. so, when wronged---prepare and fight.
My anme is amit kumar. I have joined STC Technologies in 2008(Feb - June). Suddenly i was sufring from illness as they have taken 13 hour in day. My shift timing was 7:30 morning to 8:30 evening.I have signed Bond of 50 K for 1.5year and also submitted my original certificates. But they have shutted down their delhi brance and taken away my certificates last year and whenever i am trying to contact his Chennai (head brance).No one is responded me . i want my certificates back. So please suggest me the right path to get back my certificates.
yes u can sue that co. through attorny and through police u can trace those persons regds latha
Please help.

I have signed a bond for a period of 2 years of Rs 150000.

The part of the bod is as follows-

If the employee fails to serve the employer for a period of two full academic years after the implementation of the Ib Programme or two years after the completion of the latest level of the training programme which ever is later, he shall refund an amount of Rs 1,50,000 to the Academy to cover all the expenses incurred on training the said employee.
If the employee's services is terminated by the employer during the said period, the employee is still required to refund to the employer Rs 40,000 if level 1 is completed, 75,000 if level 1 and 2 are completed and 1,00,000 if level 1, 2 and 3 are completed.

There is no benifit to me as such.

can i get a quick response as i have to move for better prospects.

I have signed an agreement / bond for 5 years on Rs. 10 court paper and a post dated checque (Rs 5 Lacs) regarding trainning or skill enhancement. This agreement include everymonth deduction of 20 % of my salary + 5 Lacs checque. If I will break this bond, they will charge from me Rs 9 Lacs + Rs 5 Lacs.
I have been USA and Europe for business trips but not for trainning. I have all inivatitaion letter from USA and Europe which i used to get visa. Its clearly states that inivattaion for business trip.

I have completed 4 months and dont want no continue. This bond is single sided. Still, i am in probation period. Please let me know, if i will leave this company, will company recover from me such huge amount.


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