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:icon1: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


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.......

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.

Dear Viral,

First of all thanks a lot posting a very intresting topic for discussion. Even i think in this case when the Bonded Labour act is abolished than we should clearly say this as a agreement or a contract instead od using term "BOND". Hope you people will agree with me.
Coming to the point of employee leaving without informing the employer even if his period is not over, in such a case i would suggest we can have a clear contract in which we can mention what if he/she quits without informing the employer. In such cases it clearly depends what you will be looking to recover from that particular employee depending on the amount that you would spent on him/her during his stay. And i would suggest you to have equal amount of monitory and non-monitory recovery from particular employee. This might make him sometimes difficult to join other company.
Hope you people agree with me and please keep posting your replies.........
Regards
Amith R.

Viral,
It entirely depends upon the clause that how it is formatted. In most of the case where such type of bonds are taken from the Employees the copy of the same is not given to the employees. Hence without the copy of the same how can an employee file the suit?
In second case if the employee does have the copy than you cann't stop the employee from filing the suit for the non payment of the so called loyality Bonus.
But usually such type of cases are only filed by the employee when he is not in the service or has left the job with that company.
As far as the time period is concerned the employee should file the case as early as possible and if he is late in filing that than there should be valid reason for being the late in filling the suit, which can convince the Court. If the employee is late in filling the case without any valid reason than court may dismissed the suit.

As far as the time period is concerned the employee should file the case as early as possible and if he is late in filing that than there should be valid reason for being the late in filling the suit, which can convince the Court. If the employee is late in filling the case without any valid reason than court may dismissed the suit.

Rajeev.......As per my knowledge..... Limitation Act condone any delay in legal proceedings.....but there is no provision to file a suit.....after time limit...... If any one file the suit after completion of time limit it can not be condone....... More over if an employee does not have a copy of the said bond...eventhough he/she can file a suit and by filing a simple application.....court can order the company to submit the original bond to the court..... that is not a big issue....

If he/she is doing a job in the same co. & file a suit then his/her relationship with co. will be in worst condition....that time what does he/she do.......coz it's a matter of 60-70k..... pls.....tell me.....

Dear All,
I concurred with the remarks of Rajeev. If the company has not incurred any expenditure on the training of that particular employee then how come the company has got the legal right to stop him or her for leaving the organisation. I think in this case the employee has got every legal right to call it a day.
Regards,


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