I am employed with a reputed mid-sized IT services company in Pune. Mine was campus recruitment and at the time of joining, my father was made to sign a bond stating that I shall continue to work with them for 2 years or pay Rs 2 Lacs if I quit before that.
I signed the joining letters in good faith.
The promised training was only a one month session and after that for the past one year I am yet to be assigned to a real project. No wonder I did not get an appraisal because I never worked on a billable project. That apart I have by large enjoyed my association with my colleagues and seniors.
Of late the company HR has been asking all employees to sign a “No Hire” clause which states employees cannot join any client, client competitor and so on for a period of one year from the date I leave the company. I am not convinced by this restrictive clause and feel this will stifle my already stagnating career. I have avoided signing it but now the HR has been pressurizing me and at time making veiled threats – we will make your exit procedure difficult, etc. I am totally stressed and discomforted by this and finally had no choice but to resign citing the mentioned reason. They are yet to reply or accept my letter.

Now the threats have increased and I am being warned of legal notice, withholding my salary/PF, experience letter, relieving letter, etc. I feel victimized because of my refusal to sign addendums to the hire letter. This unprofessional behavior by a certain section of the company surprises me as I have always put my best for the company and have been appreciated for my work earlier.
I continue to go on doing my work as usual but feel the pressure and an environment of threat.
Was I right in refusing to sign a one-sided clause and resigning on those grounds?
Please suggest what would be my options in such condition.


From Japan
Legal Counsel
Hr -generalist,(web Development Company),recruitment,performance
Executive Secretary
+4 Others

Mr. Roshan
my advice to you is that even if you had signed that "No Hire" who is behind you to find out that where you have joined or will be joining unless and until you reveal. Second part of bond is dont receive any communication which comes from there end and just relax. no body can do any thing to you. As far as PF is concerned just fill form 19 and 10c and send to your old office for proceesing to PF office. If you do not hear any thong in 3 months times just give a compalint to Regional P.f office that your old employer hasent processed the PF for sent by you and see ....
Sanjeev Kumar
HR professional.

From India, Delhi
Thanks Sanjeev.
But I did not find it ethical to sign that "No hire" clause. Who knows another year down the line they impose further new clauses which will harm my career if I bow down now.
I was rather peeved by the attitude of the HR person who blankly threatened me for signing it. And what followed is simply unacceptable.
Now my worry is about the 2 Lac bond notice which they are threatening to claim. Since this is my first job, i am also concerned of the experience letter which they say they will not issue.

From Japan
Hi Roshan:

The first and foremost thing, i am surprised how can an employee sign "No Hire" clause, this is actually signed between employer (your company) and the client, that they will not hire employees from your org.

But even if your employer is asking you for it..no issues go ahead sign it..(i agree with Sanjeev on this, who knows whom u joined, they cant do anything to you..)... but later if they ask you to sign another bond...just check in your bond, is there any clause which says (employer can extend the bond period)..if no then never sign any other bond...later....

And also even if you break the bond...your employer may hardly do any case on you...its tedious work...

Also since you have put in resignation..search a good job...But try to leave the company on good note, have good relations wid Hr, your manager, and collegeaus; because later when verification happens from your new company, this people can help you.. dnt worry..b happy

Try to search a good job... and quit at proper time

Wish you Luck

Best Regards

From India, Mumbai
Hi Gladys,
That is the first thing I told them about the "No Hire" clause!!
But as I said what drove me to resign was the behavior and verbal threats from the HR. It was a shock to me that HR can speak in such rude and abusive language. Also they will find abt my new employer when the new employer runs a background check.
I have already put my resignation and I am continuing to serve the notice period. However given the intimidating environment, i really am getting depressed. I also read on some blogs that without relieving letter I cannot be hired by any big IT companies and also ineligible for any overseas assignments in the future.
I was the only hope in my family and it seems my dreams stand shattered :(

From Japan
Hi Roshe:
Dnt b tense...nothing much happens related to relieving letter..n abt your HR dnt worry... b sure dat new company u join u tell dem abt ur joining issues after u get the offer from them...
The new company will:
1) First look ur skills
2) If they find u good, they will select you, and give you the offer
3) If you are selected, it would b amongst n candidates...
So, at that moment if you tell them your dilemma, they will understand your issue and then it may not creat many issues... and later what works is your last employers releiving letter, i dnt think any company asks for relieving letter from all previous employer...
so, dnt worry... get a new job...and join them at the earliest..b a boon for your parents :)

From India, Mumbai
Hi Roshe
Before i comment on your situation I would like to know a few things
1. What is the strength of your company(approx ?)
2. what is the clause based on which you have signed this financial bond
3 Did the first contract that you have signed say anything about the "no hire " Policy ?
Thanks and Regards
Indrani Chakraborty

From India, Pune
Dear Friend, There is no bonded labour system in our country. These bonds have no legal value.
From India, Pune
Hi Roshan,
My advice would be sign the document as it's the responsibility of the company to place you. On such situations you should show your committment to the company. As Sanjeev said it's nothing going to effect you. I beleive one year is easy to go by. Probably at this juncture they may place at the right oppurtunity.
Think About it.

From India, Srikakulam
Hi Indrani,
1. What is the strength of your company(approx ?) approx 2000
2. what is the clause based on which you have signed this financial bond
I shall be trained in the company and as surety I will need to continue to work for 2 years or shall pay Rs 2L if I quit before that time.
3 Did the first contract that you have signed say anything about the "no hire " Policy ?
No such clauses in original hire/contract.
Point is I am stagnating here and am yet to be assigned to any project. I have another 10 months left and was hoping to get off at the end of it. But now this new terms will mean, even if I leave I will be severely restricted in the companies which I can join for another 1 yr from date of leaving.
I again repeat it is no longer the additional clauses but the methods used to enforce the clause which made me take the step. My contention is I did not violate any terms but since they are bringing new terms I have a right to refuse and exit.

From Japan

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