View Poll Results: Should Bond agreement be banned
Yes 109 74.66%
No 37 25.34%
Voters: 146. You may not vote on this poll

Ash Mathew
Recruitments, Training`
Avinash-babbi1
Hrm & Legal
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Anurag Jain
Hr Manager
Robinjabraham
Business Analyst
Jagotaj
Attorney
Satyaki297
Marketing
Deshsingh
Associate Software Developerq
+10 Others

Thread Started by #canishit

Hi All,

I am Chartered Accountant, I have joined in an Pvt Ltd. IT company as Finance exec, at the time of joining they have signed a aggreement mentioning that " employee will be liable to pay Rs.50k, incurred on training, in case he leaves the org. within 1 year" the same agreement was signed on Company's Letter head.

My question is, whether such agreement is valid as per Indian Stamp Act? Should n't it be on Judicial or non judicial Stamp paper?
Can company recover from me such amount, as I haven't been imparted any kind of training?

Further, at the time of joining i wasn't inform the scope of duties exactly, after my joining i came to know I have to clear the back log for 4 months. and now i am feeling immense pressure as cannot handle backlog as well as routine daily work.

So if i put resignation can i fight on a ground that, u can adjust Rs.50k and 2months notice pay, against extra work done ( outside my scope/ not informed to me).
Can i revoke agreement saying its not legally valid as it is not on Stamp paper.

I would appreciate if any one can guide me in this issue.

Thanks to all in advance.
Awaited of some kind of positive response from you all.

Regards
18th November 2008 From India, Gandhinagar
Hello Firends, I would like to know that, company’s letter head is with compnay’s seal is valid for aggreement?? Best Regards Jayana
19th November 2008 From India, Ahmadabad
An agreement without Stamp Duty is not an invalid agreement. As per Indian Stamp Act if an agreement is not duly stamped it is liable to be impounded by the govt. authority and cannot be admissible as evidence before the court of law. However the agreement can still be valid and binding if executed without any pressure or force.

Regarding payment of 50K as expenses on training, as you said that there was no formal training provided to you and if the same can be proved you can always assert that in your notice to the Company and tell them since no training was provided I am not liable to pay 50K.

You can always mention that Job profile is different then what was agreed therefore the resignation is out of distress and not on your will and that the conditions are created which forced you to take such unwilling and drastic action.

Regards
19th November 2008 From Hong Kong, Hong Kong
Dear Sir,Your employer cannot recover any such amount from you as such under indian laws bonded labor is not permissible.If employers shows any such contract to recover such amount he himself will be behind the bars for violating the laws of land.
20th November 2008 From India, Rohtak
Hi,

In India Bond is illegal as follws

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 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.

regards,


21st November 2008 From India, Jaipur
If they have not provided you training it is totally invalid and can land the directors in jail. If only the company has incurred costs in training you can they sign a bond and it has to be resonable. It is better for you to discuss with the H.R departments director and resolve the difference or simple walk away if they are not a good company. If you have not completed six months in the company no notice period is required. If you have completed more than six months one months notice period or salary in lieu thereof is valid. Yes your leaves can be adjusted for your notice period.
Cheers Pratik
30th November 2008 From India, Delhi
I am employed for last 2 years in a engineering LTD. CO. Now is it possibile to go for study breaking the bond. have Indian Law any ground to support my higher education. My bond is done on RS. 10 stamp paper. the bond value is 5 Lakhs. Pls help me.
22nd March 2009 From India, Calcutta
Dear Guides

Plz help me also.

I went for foreign for one month by company, for making passport urgent basis, company isssued letter saying that company is sending him foriegn urgently for overseas assignment. I got passport.
But in bond on stamp paper it was written stating that for training, i signed unwillingly can say forcefully for 18 months.
I served unwillingly 15 months, after that i become absent 15 days, they started to send advisory letter with cutout date, i went company but they were not ready to rejoin me, even also told to re sign bond for three years. I totally refused.
I came back my home. Again advisory lettres are coming continue up to two months, atlast they send letter of self voluntary leaving organisation, asked to settle accounts. This is three month later.
Till now i not resigned from company.They have issued self voluntary leavinf service.so how i can resign?
Again after four month later, stating that with reference to( i.e. fraud )resignation letter dated (from i was absent, while advisory letter came up to three months) to pay bond money that is one lakh rupee.
Now they sent notice by advocate.

Can they taken legal action? Plz guide me.
10th April 2009 From India, Pune
Hello Canishit, Arnabchanda, Yuvraj777,
First & foremost you guys signed the bonds without serious thought while signing OR were under some pressure to join a job. So if this later turns out to be a mistake, who ought to be paying for it...you or the company or someone else? Now don't think I am saying the company is correct. But you gave them a chance to do what they did.

Reg Arnabchanda. You joined the job on your own accord...the company didn't force you to join-right? And if it was under any other pressure-family, etc-that doesn't concern the company at all. And you knew about the bond too then-right? And now you want to be so very selfish and are looking for ways to jump the gun...so to say. Who asked you to even try for GATE, when you knew the Bond position? If you were so concerned about your M Tech, the question you are asking on this forum should have been put by you to your company BEFORE you wrote GATE. Now by putting this query for suggestions on this Forum, you want all of us to become partners in your action [didn't want to use the strong word here--something that is usually used]?
Frankly, it's because of people like you that the Bond culture came into existence.

I am sorry if this hurts, but learn to face the consequences of your actions yourself...don't put them onto others' heads. I don't think you can take a stand-either morally or legally-that you didn't know what you signed or you did a mistake by signing. None of us are kids.

Coming to Canshit's query, Bonds on the letterheads aren't valid in courts...if the issue does goes to courts. But what if the company takes a stand that they didn't get the Bond on a stamp paper because they trusted you...what would you do? Also you are missing 2 other points here:
1) what if the company manages to show that they have imparted some sort of training--doesn't matter what YOU think of it. As long as the court believes it, it's sufficient.
2) The EXACT scope of duties can NEVER be, word-for-word, be defined by any company @ the time of joining. This is subject to conjecture. That's why most companies mention--as per the superior's instructions/company policies, etc.

Going by the tone of your posting, it LOOKS as though you want to quit since you are UNABLE TO TAKE THE PRESSURE more than any other issue. You are only making attempts to ensure you aren't blamed for jumping the gun.
And also remember that when one begins to fight, it will be against A COMPANY--think before you leap. If you can afford to spend the time, money & effort-in addition to tie-up your future....fine go ahead. Else, look for other options.
This is NOT to suggest that one should ALWAYS take things lying down...but evaluate before and NOT later or midway.

And coming to Yuvraj777, I don't know what you mean by: "i signed unwillingly can say forcefully for 18 months". Did they tie up your legs & hands and take your signature forcefully? You didn't want to miss the foreign chance then..so you signed..period. If you REALLY thought they were putting pressure, you could have FOREGONE that chance? And to top it you say: "I served unwillingly 15 months". In a line, all I can say is-you used the company for your own selfish ends and now that your work is over, you want the members of this Forum to suggest ways to jump the gun? Not fair...right?

Again I repeat....I am sorry if this hurts. But you figure out the definition of what you guys did.

Rgds,
TS
10th April 2009 From India, Hyderabad
Dear TS - that was a sure blow to people thinking that they can can advantage by pointing out that "The law does not support any such agreement"

For all employees - pls remember that you are being paid for not the ordinary work but for the extra ordinary work. It happens everywhere where your responsibilities are stretched.

In this case I see that there was a backlog of work and (that is why they hired u), and the bond from the Company - was to make sure that you dont run away from the "challenge". Whenever you are requested to sign a bond... pls understand there is a risk involved, also the risk will be beneficial to you if you are able to perform (cos they totally depend on you)

As far as the legal matters are concerned, the experts have already answered.
I would only say - If you have not received any training, or time for performing, kindly carry the records of the same to prove yourself. Also keep the company informed of the same (that u have the proof supporting ur statements)

Anyways law does not encourage bond / agreements..unless it has records of expensive training by the company...

And for others, what TS is trying to say also has a point here - why did u not think before signing the bond? I mean - if u knew it was not going to be valid... why did u sign it? Because u thought u could always fight back and prove that it was something u knew that never made sense?
10th April 2009 From India, Madras
Dear TS
i worked willingly 15 months, but company is not running properly due to joint venture problem of both partner company, cas is going under company law board,
i was afraid, that company can close also, there was no work from last six months, even work was going against joint venture terms.
so there were no chances of growth in sick company thatwhy it happened.
10th April 2009 From India, Pune
Dear Yuvraj777,
I have no further comments, except what I mentioned earlier.
In your first posting, you mentioned the word "unwillingly" and now you say "i worked willingly 15 months". I would rather take your earlier word, reading it WITH your other line-"i signed unwillingly can say forcefully for 18 months".
If you can change your stance 2 times in a single day, how do you want all to take your word when you are referring to something that happened months/years ago?
Pl. remember one thing about this Forum--it comprises of REAL good professionals to advise GENUINE cases-not just age-wise but hardened ones. But when one wants to misuse this advice given in good-faith, it's people like you who will be the losers @ the end of the day. Not anyone out here.
Rgds,
TS
10th April 2009 From India, Hyderabad
Hello Yuvraj777,
I can see these options available...based on what I know-pl. note that YOU need to decide what's PRACTICAL from your end:
1) Go to a lawyer and work for an out-of-court settlement. See if the old "letter of self voluntary leaving organisation" can be revived...let the lawyer handle this part. They are better prepared for it.
The tack to be followed is: if this goes to the courts, it will be years by the time the company gets the Rs.1 L, even if it does. And you too wouldn't have any peace of mind.
I think the MAIN OBJECTIVE of the company to send you a Lawyer notice is to bring you to this stage...NOT to ACTUALLY go to the court.
2) Rejoin them, if possible.
3) Obviously, look out for another job ASAP, even while this is being sorted out.
I also think you have still NOT shared ALL the related info. But you are the best judge...but put ALL THE FACTS-and not what you think is in your favour- when you meet the lawyer.
All the Best.
Rgds,
TS
11th April 2009 From India, Hyderabad
Hi all
Mine is a peculiar case. I had signed an affidavit for a bond of twice my salary in case I left the company within a year. I left the company within 6 months ( in my probation period) owing to unethical and illegal work ethics.
During my tenure, the company was forced to shift to Linux Operating system after a threat from Microsoft for use of pirated software
The premises of the company was sealed by the municipal corporation and we were being made to work from a cyber cafe with no public facilities.
Towards the end of my tenure, I was also made to work from the sealed office with total disrespect for the laws of the land.
I left the company stating the above reasons.
Now they have filed a case against me for stopping payment on a check and claim that the payment is being taken for training etc.... Minimal training was provided
Can I relate working conditions to the bond being null and void? If so how?
thanking you in anticipation
13th April 2009
Hello Robin,
Your case does seem to be a peculiar....I think genuine is more correct.....one, where the Employer is unscrupulous.
Do you have the evidence of what all you mentioned...microsoft letter, municipality selaing the office, etc? If you don't, suggest collect [now don't think why should I...it's upto you to fight the thing in a court-for ages OR just collect the inputs to hit back] all the inputs that could help you to prove their unethical practices.
ONCE YOU HAVE ALL THE AMMO IN YOUR HAND, call your employer and give them a chance to correct the situation-don't threaten plzzz. If they don't, contact the media and expose them. Of late, many employers take recourse to the courts, since all know this route takes years to get to a decision and the employee will be afraid of this tactic. Going to the media is faster and exposes them....such people usually are MORE afraid of public opinion than the courts.
At least, that's my take.
Wait for others' inputs too and then decide.
Rgds,
TS
13th April 2009 From India, Hyderabad
Hi,

I am working in a company called Annova Technologies, Hyderabad. I was in a bond of 1 year while joining with bank guarantee of 20000 INR. After completion of 1 year they are saying new thing that I need to submit my original certificate to ensure that I will not leave company without one month notice. There was nothing being said in offer letter about ensureing this clause with certificate.

Moreover they are not returning Bank Gaurentee unless I give them certificate and told that salary will be on hold untill I submit it.

As per I know nobody can keep any original certificate as per law, am i correct?

What is your sugesstion for my next step?

Please keep that in my mind I do not have any other job as of now, but I do not want to give my certificate becuase there is no surity that they will return me the same as this company has lot of similar cases of not returning certificate though the bond period and notice period is being served.

Chandraselhar <link updated to site home> ( Search On Cite | Search On Google )
18th July 2009 From India, Hyderabad
can an employer ask for a prospective employee to sign an agreement that he will join the company on so and so date otherwise he is liable for an unmentioned huge penalty? will this stand good with indian law?
15th February 2010 From India, Bangalore
Hi Tej
I have a problem that i have to leave my company due to my personal reason,but the cmpny is not releasing me immediately as the companie's appointment letter says employee can leave with one month prior notice or salary of one month in lieu thereof.
i am ready to pay one month salary but they are not releaving what shall i do in this condition.
Rajesh
1st April 2010 From India, New Delhi
Help needed.
I have signed a bond with company on company letter heaad for not joining client for 2 years after completing my onsite assignment and work for six months once I return to india. But now client and my company has some issues and client want me to join them on their payroll. bond says pay damages of 25000 US dollar if i breach the contract. but there is no legal agreement between my company and client right now. The bond signed is in india and I am working out of india.
i want to know does such bond holds any legal value in this scenario. can I leave by resigning without any notice period.
please let me know what should I do.
27th June 2010 From Qatar, Doha
Dear all
from last 1st August 2014 i am joining one company, i am writ 2 years bond but present i want to leave that company. actually 6 months Prohibition period, in that bond if you break the bond you can pay the three month's gross salary. so give me clarification
30th September 2014 From India, Hyderabad
*** URGENT HELP NEEDED ***

Hi,

To all the experts around here, my problem is very similar to those being discussed over here. I would brief you a little so that you're able to help and advice correctly.

I joined this company in Mid-August 2014. We agreed on the salary and one year commitment in the form of a "Service Agreement" worth two and a half month's of salary. The company asked for a cheque of the bond value. Dateless. Stating that it is a standard company policy, and whenever you sign a bond you have to do this. After trying to resist it, I had to give the cheque, because otherwise they won't give me the offer letter/appointment letter. Nearly two months into the job, I grew frustrated of the work environment, lack of commitment, sincerity and all those subjective issues from my boss, who happens to be the co-founder and director of the company. After trying to bear it for almost two months, I decided to quit.

I would request you to please give clarification, guide and advise on the following points, what options do I have and what would you suggest me to do. (Queries written in CAPS)

1. The bond was printed on a plain A4 size paper, with my and one of the three director's signature on all the 3 pages. PLEASE NOTE - There is no Stamp Paper in the front. There is no seal of the company on any page.
*** IS SUCH A BOND VALID IN THE FIRST PLACE?
---------------------------------------------
2. I wouldn't term it as threatening, because I don't know if its correct or not, but THEY WOULD ENCASH THE CHEQUE IF I QUIT BEFORE THE PERIOD.
*** IF I GO TO THE BANK AND "STOP PAYMENT" OF THAT CHEQUE, WHAT ACTIONS CAN THE COMPANY TAKE?
*** ARE THEY LEGALLY ENTITLED TO ENCASHING THAT CHEQUE?
*** WHAT MIGHT BE THE LEGAL CONSEQUENCES OF IT?
----------------------------------------------
3. I did not resign but wrote them a long mail stating the reasons for my disappointment and frustration and the same being the reason for my absence from the office. The reasons being the mental pressures (which are not due to the demanding work) and unhealthy work environment, lack of clarity in the job roles, plus the job roles not being the same as verbally promised (never received any document about it at all). In the long meeting post that mail, after discussions, I finally tried to talk to them to mutually end the agreement, relieve me of my duties and return my cheque.
*** THEY HAVE ASKED TO WORK FOR A MONTH WITHOUT ANY SALARY, AND AFTER THAT THEY'LL RETURN ME MY CHEQUE AND RELIEVE ME. OR ELSE THEY'RE ENCASHING THE CHEQUE AND I WILL BE FREE TO GO, WITHOUT ANY LETTER OR ANY FORMALITIES. PLEASE NOTE I HAVEN'T OFFICIALLY RESIGNED YET. I FEEL HELPLESS HERE, PLEASE ADVICE. I'M OKAY WITH SERVING A NOTICE PERIOD, BUT ATLEAST I EXPECT THE SALARY DURING THAT TIME.
--------------------
4. My offer letter states that I need to serve a notice period of 45 days after my resignation letter is accepted. I signed on the photocopy of this agreement as a gesture of "Accepted". The photocopy is with the HR.
*** IS THE NOTICE PERIOD NECESSARY, IF I HAVE NOT WORKED FOR 6 MONTHS OR MORE? (Read similar thing in the thread.)
*** DOES IT STAND VALID?
--------------------
5. WHAT IF DON'T RESIGN AND UNDERPERFORM, SHOW LACK OF COMMITMENT, BE INCOMPETENT ETC. SO THAT THESE PEOPLE KICK ME OUT. CAN THEY STILL ENCASH THAT CHEQUE? WHAT IF I DON'T CARE ABOUT THE RECOMMENDATION LETTER/RELIEVING LETTER ETC.
*** WOULD YOU SUGGEST SUCH MEASURES IN EXTREME CASES, WHERE I DON'T WANT TO LOSE THAT MONEY.
--------------------

My company is relatively small company with 3 Directors and 7 employees, but is a part of a big business group locally over here. Since I am not able to find a way right now, and till I get the chance to get some professional legal advise, I'll be joining back from tomorrow to serve the notice period.

I request you to kindly advise on how I should take it forward. If possible, please state the relevant citations so that it'll be easier for me to understand and get out of this. If you need more information so that you could help, feel free to drop me an email at satyaki297@gmail.com

Thanks a lot.
Satyaki Purandare

P.S. - I would appreciate if I'm not given advise like "You're a quitter" and "why did you sign the bond" etc. I did whatever I did in good faith, I believed the work will be challenging but did not expect people and office culture to be so bad, I worked for the company with full commitment and I am not running away from the job because I cannot bear the work load but I want to quit because I refuse comprise my work ethics and morals and I to work at a place which does not contribute in my growth, but instead is an anchor to it. Thanks.
16th December 2014 From India, Indore
Hello Satyaki Purandare,

The options you (1) have & (2) can exercise [which would be different from (1)] would depend a lot on what YOUR PRIORITIES are & what you CAN HANDLE.

To address your queries:

1. The bond was printed on a plain A4 size paper, with my and one of the three director's signature on all the 3 pages. PLEASE NOTE - There is no Stamp Paper in the front. There is no seal of the company on any page.

*** IS SUCH A BOND VALID IN THE FIRST PLACE?

ANS: NO. Such Bonds are NOT valid. But that IS NOT the issue in your case. If you need to enforce this aspect, there's no other way but to go legal [at least to the Lawyer Notice stage]. Now YOU need to decide IF you wish to go that route--involving money, time & effort.

2. I ..................................... but THEY WOULD ENCASH THE CHEQUE IF I QUIT BEFORE THE PERIOD.

*** IF I GO TO THE BANK AND "STOP PAYMENT" OF THAT CHEQUE, WHAT ACTIONS CAN THE COMPANY TAKE?

*** ARE THEY LEGALLY ENTITLED TO ENCASHING THAT CHEQUE? WHAT MIGHT BE THE LEGAL CONSEQUENCES OF IT?

ANS: You can be sure they would encash the cheque. Better wait for legal members to respond to your query about the consequences of issuing Stop-Payment to your Bank. Logically, I don't see any problem, except that you MAY need to be ready that the Company would go legal on this issue.

3. I .................................................. ......................................THEY HAVE ASKED TO WORK FOR A MONTH WITHOUT ANY SALARY, AND AFTER THAT THEY'LL RETURN ME MY CHEQUE AND RELIEVE ME. OR ELSE THEY'RE ENCASHING THE CHEQUE AND I WILL BE FREE TO GO, WITHOUT ANY LETTER OR ANY FORMALITIES. .................................................. ...., PLEASE ADVICE. I'M OKAY WITH SERVING A NOTICE PERIOD, BUT ATLEAST I EXPECT THE SALARY DURING THAT TIME.

ANS: Prima-facie, this looks to be a better way out of the situation. However, this contradicts your intent of NOT serving any Notice period--looks like you are confused.

However, the only aspect you need to be careful about during this 1 month period is to ensure you don't stuck in ANY situations where you MIGHT be taken advantage of OR worse, get into a trap. Given what you mentioned about the structure of this Company, I won't rule it out altogether.

And reg the Salary for this 1 month, frankly, the better way out will be to insist for it BUT at the same time, be mentally prepared to forget it IF they say NO.

And suggest take this deal [of serving 1 month, getting the PDC back, etc IN WRITING. Not worth taking any chances @ this stage.

4. My ...................................... notice period of 45 days after my resignation letter is accepted. ....................................IS THE NOTICE PERIOD NECESSARY, IF I HAVE NOT WORKED FOR 6 MONTHS OR MORE? (Read similar thing in the thread.) DOES IT STAND VALID?

ANS: Looks like you have some earlier experience--meaning, you aren't a Fresher. I am sure you must also have read that every Company have their own set of Policies/Rules. The fact of the matter is: you ACCEPTED.

So just forget about this aspect of the case.

5. WHAT IF DON'T RESIGN AND UNDERPERFORM, SHOW LACK OF COMMITMENT, BE INCOMPETENT ETC. SO THAT THESE PEOPLE KICK ME OUT. CAN THEY STILL ENCASH THAT CHEQUE? WHAT IF I DON'T CARE ABOUT THE RECOMMENDATION LETTER/RELIEVING LETTER ETC. WOULD YOU SUGGEST SUCH MEASURES IN EXTREME CASES, WHERE I DON'T WANT TO LOSE THAT MONEY.

ANS: While you seem to be PRESUMING what they MIGHT do or not do, pl note that THEIR actions aren't in your hands. And you also seem to forget about the timeline--WHEN they will kick you out. What IF they take 1 or 2 yrs to do so [for whatever reasons]? Are you ready for that scenario--career-wise and emotionally?

Another presumption is that you would given the money....what IF they play around with delaying tactics?

Now coming to your remarks in the PS "I would appreciate if I'm not given advise like "You're a quitter" and "why did you sign the bond" etc". Pl note that when you ask for suggestions/advice, it's always better to keep an open mind on what's coming. Even though you might have done what you did "in good faith", like you mentioned, it's a fact that you ERRED in your judgement. Right? Then why should you take offence when someone points it out? It only points out to one factor that you missed out initially in your eagerness to land with just about any job that gives you the salary you are looking for. Nothing wrong, per se, in this--EXCEPT that you failed to see that this wasn't a plain deal right from the word go. No professional Organization takes PDCs [in your case Undated] in lieu of Notice Periods/Performance. That itself OUGHT to have been a red herring for you.

I shall suggest that you get out of here as smoothly as possible. AND, also suggest discuss with any reliable advocate about the steps you be taking from on UNTIL you get relieved FORMALLY. This is to ensure that all subsequent steps don't give them a chance to trap you.

And finally, pl LEARN from this experience.

It's always wise to ACT with the Best-case-Scenario in mind BUT ALSO with the Worst-case-Scenario right from the beginning--especially where there are no reference points to go by. Hope you get the point.

All the Best.

Rgds,

TS
16th December 2014 From India, Hyderabad
Dear All,
My employer has similar clauses of training expenses. But there is no training program. Rather, I have trained 10 new people who joined under me. Also they have 1 year of work bond, failing which employee become liable to pay 6 months of salary and 25k INR of training cost.
And final problem is that employer deducts salary without notice for 5 minutes of late coming(which is 2.5% of slaray for per day incident). But we stretch for many nights and weekends also. And there is no over-time policy.
My salary has been deducted twice without notice, where management folks just cite some HR policy which only exists in rumours. Our bond is not on any stamp paper but just company letter head.
Please advice.
20th December 2014 From India, Mumbai
Hello Sir, I have signed offer letter in the beginning in which it was stated that i have to sign a service bond of 2 years after completion of my 6 months period and if i sing the bond i have to be a part of company for 2 years and if i wish to leave i have to pay 50000. after 6 months now i am not signing the service bond and they are still asking me to pay 50000. even they have not given any training directly asked me to work on project. what should i do?
26th May 2015 From India, undefined
Hello Experts
I need your advice on a similar matter,I signed off a commitment or service with my employer, which was not on a stamp paper, but it was mentioned on that document that if I leave before 2 years i have to pay an amount of INR 500000, again which is applicable if company invests on my training etc.which has not happened at all,an in case of un-forceful personal circumstances the bond is not applied.As I am getting married and my husband live in another city and I will not be able to continue with my services, they have asked me to give a proof of my wedding which i will do, but i want to know what is the authenticity of a bond signed on a normal plain paper also i have not been given any training from company so is the bond still valid ? As i asked them for the copy of bond they refused to give a copy of that too. please advise.
18th August 2015 From India, Patiala
Hello Mr Nathrao
Thanks for your comments, but few more things to tell is that they hired me for a new department and promised me a lot of other things like sales support and resources, which again did'nt happen, over that i am not being paid the signing amount so is that professional or ethical ?? i dont want to compromise on my rights, the document mentions that for unforeseen reasons the bond is not applicable and i am not getting married to quit this job, I am moving out coz m getting married.please give advice as per which i can legally challenge the unethical stuff.
18th August 2015 From India, Patiala
Hello Sonileoz,

Forgetting about 'ETHICS' for a moment, I think Nathrao has already suggested you a way out "Try your level best for a negotiated exit and not a court room battle".

If you REALLY want to sort things out legally, the best way is to do the following:

1] Hire a Lawyer & explain the case to him to take it forward.

2] Be prepared for the Company to respond legally too......which COULD mean that your Dues, etc are bound to get involved....after all you can't expect them to just sit & watch. Whether what they are doing is 'right' or 'wrong' will be decided by the Court......after years. It's not for YOU or anyone else to decide. If the Court decides in the end that the Company is wrong, then MAYBE you will have the option to file a defamation OR monetary Claims suit again.

3] Also be prepared to spend time, energy, & MONEY [as Fees to the lawyer....let me remind you here that NOT ALL advocates are ethical, so you will need to be prepared for this possibility].......at this point of time, it would be tough to quantify on these aspects. The time would be in years for sure.....IF you know the way Courts operate in India.

4] You are getting married.......though nothing can be said at this point of time, when your case begins to drag/languish in the Courts, you need to be sure that you will get the support of your husband/family. It's easier saying 'sure....why not' now, but when your family begins to grow, try saying the same thing THEN.

5] You didn't mention how big is your present Company.....if they are reasonably large, then they CAN.....repeat CAN [whether they do it or not is a different issue & upto them].....give a bad BC feedback for your next job.

SO GOING LEGAL IS QUITE SIMPLE......when one is ready to face all the above consequences.

The Company has already given you an option of proving that you are really getting married.....by asking for the Wedding Card. In their position, what would you be doing?

I know you may not like the above points.

But suggest ALWAYS try to 'FIRST look before you leap'.

Also a piece of advice for YOUR benefit:

You mentioned '....they hired me for a new department and promised me a lot of other things like sales support and resources, which again did'nt happen'.

I am not sure of your experience level. But, pl understand that IF you are looking for a job where there's 100% adherence to commitments & 100% compatibility to what you seek in the job, forget it. You won't find it anywhere INCLUDING IN Google, Amazon, Microsoft, etc. And I am saying this from inside knowledge.

There are many ways to resolve the issues you mentioned......rather than using them as grounds to leave the Company OR going legal.

I recollect a Quote by Zig Ziglar: "Attitude & Aptitude determine your Altitude in life & career".

All the Best.

Rgds,

TS
18th August 2015 From India, Hyderabad
My wife borrowed one lakes on demand of non-judicial bond paper with security of signed cheque leaf.
My wife paid interests more than one lakes. Bond is not signed both party. . Interests per month Rs no 9000. witness signed. Loan le lender has died.. now his wife threteteing me to pay assets one lakss or put in case . we are afraid. Please advise me.
11th March 2016 From India, Bengaluru
I want to resign from the company after one month of joining in which I have signed 2 year bond and I have given a post dated cheque of 200000. I am on 6 month probation period.There are also 3 month notice period.
I don't want to pay this amount. even I don't got any salary from the company.
This bond amount and duration is not written in employment letter but I have signed on stamp paper. In that stamp paper there are written this thing.
Is this bond is legal which is not written in employment letter?
Even they are not giving copy of that signed bond.
Please tell me can I have to pay this amount after due date of post dated cheque
What problem should I face if I don't give that bond money?
16th November 2016 From India, Bangalore
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