anithamb Started The Discussion:
Hi All I had joined a small software firm over a 7 months back as PHP Developer after working with one small organisation for 19 months . I had signed a commitment bond for 2 year on plane print out offer letter not on bond paper. I getting many interview calls for better package. My guys are not going to hike my small salary till March 2012. I want to break this bond. Please help me guys. Is this kind of bonds are legal since i not signed on bond paper.

1. Contractual Bond
1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates. In consideration, thereof, you hereby agree that notwithstanding anything to the contrary herein, you shall not terminate your employment with the company for a period of two (2) years with effect from the date of your joining XYZ Technologies. In the event that you terminate employment with the company prior to the expiry of the aforesaid two (2) years, you shall repay to the company immediately the sum equivalent to your monthly salary multiplied by the remaining number of months calculated as from the date of termination until the expiry of the aforesaid two-year period.

2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

2.2 You may at any time terminate this agreement after Contractual Bond period by giving in writing to company 2 months notice or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.


As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate And the technology used is open source.I want to break this bond for better opportunities. Please help me.
Posted 9th June 2011 From India, Bangalore
Hi Anitha,

The employment bond is still legal as it is signed by the competent authority along with the company stamp/seal plus your signature is also being made as token of acceptance.(Most of the bonds are made in this way or on company letter heads)

Now if you have made the sign before the matter was written i.e, on the plain paper it will still be considered as Legal Bond.As its a mistake from your side.

Even if you go to court of law with the same issue, it will not be easy to defend yourself with that excuse.

Now as you said that you are not given the training etc... as written on the bond,You have every right to terminate the contract as company violated the terms and conditions.

Speak to your authorities regarding the same thing and get the contract terminated on mutual understanding basis or esle say that you are going to court of law for settlement.

Regards,
Manoj Devda
Accounts and Hr Manager
Posted 9th June 2011 From India, Hyderabad
Hi Again,

Just to keep you more motivated......

In India Bond is illegal as follows

As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes

Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that’s amounting to the violation of the rights mentioned under Article 19.

As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.

Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom its is enforced and if performed would violate principles of natural justices.

As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.

Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.

The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.

The court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.

Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.

Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.

Hope it will help you.

Note:Sharing what is shared on CiteHR
Posted 9th June 2011 From India, Hyderabad
Hi mani_pooja,
Your First Answer really scared me.But Second One given little relax.Still I have few small doubts . Can You please clear me .
1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?
As I have told ,I have not undergone any kind of training from third party and not got any kind of economical benfits from company.
2. Legally there will be any imprisonment for breaking bond?
3. Still whether they can force me to work even after breaking Bond and I not have will do .
4. There will be any black listing kind of thing In India which may spoil my future career.

I hope you can understand my anxiety and traumatic condition I may be undergoing.Please clear these small doubts.
Posted 9th June 2011 From India, Bangalore
Hi Anitha,

Your Answers are below-

1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?

Ans:Yes,24 months - 7 months=17months*monthly pay=compensation

2. Legally there will be any imprisonment for breaking bond?

Ans-The query shows you are very afraid.Anyways there is nothing to happen,If you pay the above compensation amount (I strongly feel that's not going to be the situation as I said earlier you have every right to the break bond If the agreement terms and conditions are violated by the company)

3. Still whether they can force me to work even after breaking Bond and I not have will do .

Ans-The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.

4. There will be any black listing kind of thing In India which may spoil my future career.
Ans-There is black listing In India,It will be done in case of theft or fraud done by employee but surely not for such a small issue like breaking contract because there are many who does if the contract is not placed properly.

You have a bright future.....

I feel you are very much worried and afraid to do anything that's the reason you get all these NEGATIVE thoughts.

All I can say is-KEEP IT SIMPLE,SILLY
Posted 9th June 2011 From India, Hyderabad
Dear Anita,

Pooja has given the correct answer with all the legal implications.

Now let me clarify you in very simple manner again-

You have signed the contract based on certain conditions. The employer has not fulfilled it like specialised training and all. Hence your bond has become invalid and this will not be valid under the court of law. You just follow the resignation rules and they have to accept or you can take legal action against them.

No need to worry go ahead

I thanks and commend Pooja for clarifying you with so much patience.

god bless all
Posted 9th June 2011 From India, Secunderabad
Thanks mani_pooja,
For Your patience and clearing my last three doubts.But regarding my first question ,your answer paused my breath for a second. I am still in dilemma regarding the same . I would like to tell you that they had not violated any rules and about training they stated that only if necessary then I have to undergo for it. Why I should have to give compensation to them when the Bond itself is Invalid? Why they can claim money from me? even if they claim ,they have to provide the sufficient reasons for it that they had spent on me na?. At present situation I cant able to give such huge amount as a compensation and I cant be slave for small salary when opportunities dancing in front of my eyes. This is the most traumatic thing that every employee may be facing who had bonded to bond. Please guide me in this regard. I read on many discussions that even if company claims compensation they have to provide sufficient reasons that they had spent on candidate. But all those discussions are 3-4 years old. So I need help regards. Thanks in advance.
Posted 10th June 2011 From India, Bangalore
Hello anithamb,
Manoj Devda has given you the right perspective as far as the effectiveness of the Bond is concerned IN YOUR CASE.

However, it seems to me that you have your priorities a bit 'mixed-up'.

Your MAIN GROUSE in this Company is: less salary & the next hike being in March, 2012. Why not HANDLE IT DIRECTLY instead of ASSUMING things--that you can't get the hike now?

Since Employment Bond is, by & large, illegal & tough to implement legally, many companies adopt the strategy of having a Bond for some Training or such reasons & then getting the Bond signed for this reason, rather than for employment [I remember seeing another thread recently in CiteHR about a person signing a Bond for 6 month overseas training--when he was called back after just 2 weeks, & that was for 4 L]. Your company seems to have adopted the same approach. IF...REPEAT IF.....one of you decide to go legal, you have the facts in your favour--THAT YOU WEREN'T GIVEN ANY TRAINING.
But at the same time, pl note that it's easier for the company to handle the legal route [even if YOU go legal] since they can handle it financially AND have someone to handle the issue in the courts--their lawyer. I am looking @ the worst-case scenario--if you mention the flaw in their Bond [about not being given any training], MOST-LIKELY they will only get alerted & IF they want to fleece the money from you [quite probable--since they might not want to set a precedence to other employees], they will begin to make efforts to cook-up something to show that you WERE GIVEN training. Do you see where this COULD be leading to? Is it worth your time, effort & money [to hire your lawyer]? I have not even taken into account the time our Indian courts take to decide--either way--in a case.

You mentioned:I getting many interview calls for better package. But that doesn't mean you have SOMETHING IN HAND. And until you have something IN HAND, it means nothing.
Suggest begin to appear for interviews. And then when you get an Offer in hand--WHICH YOU FIND GOOD--then go to your HR and BARGAIN [showing the Offer or not to them depends on the situation then]. That's the time for you to mention about the Training--or the lack of it. Since you have an offer in hand, the HR would most likely respond to hike your salary NOW. If the hike you get here is good--by your standards--then maybe you can stay back?
And if & when you mention about the training issue, pl mention it confidently--which will convey the impression that you did your homework about taking legal advice & are prepared to go the whole hog, IF NEEDED. Whether you go or not isn't & will not be the issue--it's WHAT YOU CONVEY & WHAT THEY PERCEIVE that will be the issue.

Also, you haven't mentioned how much will the Balance 17 month salary come to--IF you have to pay back the Bond money. Since you mentioned your salary is low, another way of looking @ it is: if you get an Offer with a REAL good hike, maybe it's better to pay back & then go freely without any future headaches? [We handled one such case recently--the guy was getting 16 K p.m. & he got an Offer for 30K p.m. & his Bond money worked out to 46K--he preferred to pay back, since it was just 2-3 months salary]. See the point?

Like they say: Every problem has MULTIPLE options/solutions--it all depends on which direction we see.

All the Best.

Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Thanks tajsateesh,
For your details. I am getting 17k per month. and getting calls for offer of 22-25k. if I have to give compensation then its 17*17 k. My question is why and how they can claim such amount of money when the sources are open source and no third party training.Which law provides them right to claim the compensation?. Its just 5 member company.I am confident that I will get good offer package than this looking at the technology trend. But I am only worried about such slave bond.please suggest me remedy for it.
Posted 10th June 2011 From India, Bangalore
Hello anithamb,
Let's face it---didn't you know that the software is open-source WHEN YOU SIGNED THE BOND? I am sure you knew--anyone associated with the S/W industry knows that fact. Then WHY DID YOU SIGN THE BOND IN THE FIRST PLACE? Because IT SUITED YOU at that time--you desperately wanted a job.
And now when it's INCONVENIENT FOR YOU [because other companies are offering you more], you want this Forum to suggest a way to break it--legally? If you were in the company's place, how would you react/respond?
THAT you are seeking advice from this Forum IS NOT WRONG, but I feel the REASONS & INTENT YOU ARE SEEKING FOR ARE, PER SE, WRONG.

In general, it's ALWAYS easy to throw the blame on others, but quite often we fail to observe how [or why] WE made a contribution for a situation. The moment we analyze a situation from this angle, other options emerge.

Coming to your confidence of getting calls for offers of 22-25K, maybe it won't be difficult for THIS company to match that figure--it's just about 30-45% hike? IF YOUR PERFORMANCE HAS BEEN VERY GOOD here, getting this sort of a hike when someone resigns or attempts to resign is NOT very difficult. For all I know, you may not even need to raise the fact that no training has been given to you. No Company wants to loose a person who WORKS & DELIVERS.
W.r.t. another aspect you clarified--you say that the employee strength is only 5. So that COULD point to 2 facts: (1) they can't afford to loose anyone. (2) if you come out with a logical & reasonable bargain figure--once you have an offer in hand--they, MOST LIKELY, will NOT say no.

Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Hi Anitha,

Every company has RIGHT to get compensation if the agreement/bond is violated/terminated for whatever reasons by the employee.

The reason I say is because company makes lots of investments on recruitment,Consultancy charges,training,advertisement etc...+time on the employee.Now imagine one fine day if the employee says he wants to resign,then think from the company perspective how much loss is incurred to them?

THAT'S THE MAIN REASONS WHY COMPANY SIGNS THE BOND WITH THE EMPLOYEES.

Now coming to your case,If the company has not given any training and neither made any specific investments on you,then you can make final decision either to stay or Leave (without paying any compensation).

What Mr.Sateesh has suggested earlier was RIGHT in saying that just getting calls is not sufficient for you to think about changing job or terminating contract.Get an OFFER LETTER in your hand FIRST then think of the NEXT step.

May be by that time you might find more solutions.

Finally one silly solution to your problem,which in fact worked in favour of my Friend few months ago,he was in same situation like you.

ONLY IF YOU ASK FOR!

Regards,
Manoj Devda
Posted 10th June 2011 From India, Hyderabad
Dear tajsateesh,
I knew all that its open source and I had signed for the fact that there may be any training on new technology which is paid one and may be third party training. But that one till not came into picture. Its not only the salary matter. mentally I not feeling to work here because the environment and things around have changed. Your answer has increased my worrieness. I can understand the company situation also. But I would like to tell you that I had done well job and given best out of me more than what I can till.If company can terminate our service before bond period then Why cant I?. I thought my this question will be helpful for others also so I posted on forum. I respect your thoughts and value of time. But just try to understand the situation of a middle class worker. Company is not a victim here. They making good bucks out of me.If they can fire us anytime and look for better candidate then Why cant I do the same? I am not cheating them in any sense. Please forgive me If I have talked anything which may be irrelevant here. Please help and suggest me.
Posted 10th June 2011 From India, Bangalore
Thanks mani_pooja, For Your valuable suggestions. I will keep everything into mind and will decide.Can you please mail me those ideas to my mail id fakeguy4chat@gmail.com. Thanks for your time.
Posted 10th June 2011 From India, Bangalore
Hello anithamb,
At the outset pl understand that you DON'T NEED TO BE APOLOGETIC by saying "Please forgive me If I have talked anything which may be irrelevant here".
You are only placing the facts of the case AND YOUR perspective.

Coming to the facts of the case, you have now added another aspect:"Its not only the salary matter. mentally I not feeling to work here because the environment and things around have changed".
Any reason why you DIDN'T mention this aspect earlier [though I had suspected something like this or a tiff with the boss, etc as the reason for your query]?
Now, like I always said in my responses to other similar threads--it's YOUR life & career & so the FINAL decision HAS TO BE YOUR'S. All the members in this Forum or your friends or relatives only give you different perspectives of the issue/problem, so that you can make a WELL-INFORMED decision. What to consider or what to ignore IS & HAS TO BE YOUR DECISION.

A small point of reality: are you so sure that the 'mental dissatisfaction' you have here now doesn't repeat in your new company--wherever you move to? I won't say it will, but I can't say it won't too.

Like I mentioned in my First response, I think you STILL are mixing up the issues/priorities.
If you want to change JUST BECAUSE YOU WANT TO RUN AWAY from the present problem, then this would be a wrong step. TRY TO CHANGE/RESOLVE it. Think of ways on HOW TO DO THIS rather than just jumping out of the boat--pl be assured that the next job WOULD [NOT 'could'] have another set of problems--if that's the way one wants to look @ it. So 'where-to' from there? For you to resolve this aspect, you need to make effort to understand the reason(s) for your current mental dissatisfaction, for which pl don't discount your contribution too.

I suggest you begin to look @ the LARGER picture when you take any decision--that way the chances of making mistakes that you CAN'T correct would be minimum. Why make a mistake & then go about trying to resolve them?

All the Best.
Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Hi Anitha,

You are welcome.I have send it to your mail id.By the way your mail id is very interesting one.

Also there are other instructions to be followed in order to break the contract like-

* 1.Analyze your situation. If you were pressured or rushed into signing the contract of employment you may have valid reasons to back out. Employers must give new employees a reasonable amount of time, at least 21 days, to consider the terms of the agreement and even seek legal advice if necessary, according to the Age Discrimination in Employment Act (ADEA).

* 2.Break the contract within seven days after signing it. That's because the ADEA requires that employers allow new employees seven days after signing an agreement to cancel it if the person so desires.

* 3.Consider the contract invalid if either party fails to meet the contract's obligations.

* 4.Reach a mutual agreement to cancel the agreement. If you can convince the other party to void the contract, both parties can walk away without legal repercussions.

* 5.Prove that the contract was executed under false representation. Fraud is another valid reason to break an employment contract.

* 6.Only adults of legal age can enter into a contract. If either party is under age, the contract is not binding. Legal age varies depending your state.

*7.Consult with a legal advisor to see if there are any other stipulations in the contract or state laws that would allow you to break it. Employment contract laws in each state differ, and they each may contain specific ways to get out of your contract legally.

*8.Ask the employer if both parties can agree to void the contract. The contract is not in effect if no one wants to be a part of it any longer.

*9.Produce proof that you were forced or intimidated to sign the contract or that you were incapacitated when you signed the contract. Contracts are not binding if you signed them under duress or could not rationally make the decision to sign it.

Regards,
Manoj Devda
Posted 10th June 2011 From India, Hyderabad
Hi Sateesh, Great job..............Your points are very straight forward and difficult to accept. But that’s the final truth. Keep the good work.
Posted 10th June 2011 From India, Hyderabad
Thanks mani_pooja and tajsateesh,
Once again thanks to you both the guys. I hope it will be also helpful for others also regarding the dilemma they may be facing. Things have cleared to me. I have taken firm decision of resignation after 2 months citing family reasons and could not work in city and would like to go back to native. Will request my employer that I will work for two months notice period and kindly terminate me after that. Will see then. If any problem arises by then I will contact the law experts and this forum for the further help.Once again thanks to all.
Posted 10th June 2011 From India, Bangalore
Well said Manoj Devda--Thats good move....at least for the moment.

And anithamb--just keep your options open for now.
Who knows how things may turn? I recollect a movie dialogue: anything can happen in 6 months [in your case, 2 months]....your boss may realize his faults & make corrections in the system, you may be given an out-of-turn hike, etc.........????????
But also keep your efforts @ FULL pace in your work.

All the Best.

Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Just one last thing anithamb, before you get onto your work & wait till 2 months :-)

Did you ever wonder WHY most of the seniors in this Forum INVARIABLY & ALWAYS suggest that the individual concerned HAS TO TAKE THE FINAL CALL/DECISION & their suggestions have to be treated ONLY as inputs/advice?

It's just that it's YOU who has to face the consequences of YOUR ACTIONS/DECISIONS/CHOICES--NOT the members or your friends or EVEN your family members or relatives. Everyone may support or give their shoulders for you to LEAN ON [or cry upon--depending on the context], but @ the End-of-the-Day, it's YOU who has to face the music...so to say--NO ONE ELSE. Whether it's career or life.

Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Hi Sateesh,

What you said is absolutely Right.

But the timing was completely wrong.

As being members of this Forum WE SHOULD ENCOURAGE THEM (llike Anitha Case)TO TAKE DECISIONS AND NOT MAKE AFRAID OR MAKE THEM THINK TWICE or THRICE FOR WHAT THEY THINK.

Thanks for understanding......
Posted 10th June 2011 From India, Hyderabad
In a way you are right Manoj Devda.
However, the intention WASN'T to frighten AND NEITHER WAS IT to ensure that she thinks twice BEFORE taking a decision.

The MAIN purpose of my last posting was this: I have seen quite a few persons to CONSIDER ONLY THE POSITIVE ASPECTS/CONCLUSIONS/RESULTS of a decision during their decision-making process. They FAIL TO EVEN GIVE A THOUGHT or FACTOR-IN the POSSIBILITY that what they think will/should happen or the result they WANT TO TAKE PLACE MAY NOT HAPPEN AT ALL. Whether we like it or not, that's life.......however well we plan things out, there's ALWAYS a possibility of things NOT TURNING OUT THE WAY WE wanted/expected/hoped-for.
In a way, I think it applies to everyone at some point of time or the other, including me.

Consequently when the end-result turns out to be different, the other person(s) or circumstances or anyone/anything gets blamed......EXCEPT HIMSELF/HERSELF.

Now just apply this to the thread under discussion & you can grasp/notice why I said what I said.
I just wanted anithamb NOT TO repeat in future what she did in the past....of which she's facing the consequences NOW. Maybe that's what they call--learning from mistakes & converting the mistake into experience.

Rgds,
TS
Posted 10th June 2011 From India, Hyderabad
Thanks tajsateesh,
Your these words cheered up my spirit and I could stop myself by smiling at it. Thanks for devoting thoughts of your experience of life to others so that they cant take wrong diversion in career. Whatever you said is a bitter truth that every one knows but in pain they refuse to accept it as fact. I myself confident and have faith that will take my own decision based on experiences of others and my voice at conscience but not merely based on the my present grief. Ya I agree with you that forum members suggestions have to be treated ONLY as inputs/advice. Thanks once again.
Posted 11th June 2011 From India, Bangalore
Hello anithamb,
I recollect a Quote: The Wise learn from others' mistakes, the Average Person learns from his/her mistakes, while the Fool doesn't ever learn.
I have also seen another class of people: they NOT only NOT LEARN from any mistake, but misguide/misdirect others to their path..........not sure how to 'define' this category.
CiteHR's efforts, I believe, has been to take all members to category-1...but at the End-of-Day, it's upto the member concerned :-)

Also, I don't think you would have had a chance to pose your query and learn & neither would those who participated in this thread-including me- would have had a chance to share their experiences/knowledge IF CiteHR HADN'T EXISTED.....Right?
So in short--SAY THANKS TO CiteHR.

All the Best.

Rgds,
TS
Posted 11th June 2011 From India, Hyderabad
Anonymous 
Hi Sateesh,

I'm having the same query. At the time of the interview, I was told that I will be deployed on a particular technology(Database testing) however, when I joined the company I was asked to do website testing which is less technical in terms of skill from what was committed to me. My prior experience was of very technical profile. So this is cheating on their part.

Also, on the offer letter I had signed on, they had a term that I cannot leave the company before completing 18 months and if I leave the company before this period I will have to pay Rs. 50000 as penalty. However, I had not signed any stamp paper agreement with this employer.

So my question is, whether I have to pay the penalty fee to my previous organisation?

Thanks in advance!
Posted 2nd January 2013 From India



 
 
 
 







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