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Is the bond's taken by private firms legal? if so why they are legal? as the bond says that the employee have to work for x years but never says that they will keep the employee for x years.
In such a case, if one need to leave the company is it necessary to give the quoted money (on the bond) for breaking it?
Is there any way one can ask for experience letter and relieving letter from the company after breaking bond?

From United States, Atlanta

Even if you see the contract it says you have to give 3 months notice/3 months salary before leaving the job but there is no such bonding mentioned for the employer. Is it right? Kindly let me know...
In our company they are collecting bonds with the above mentioned ters. But people are leaving with out even one months notice. what can be done for this... Pls help

From India, Madras
I really don't know the solution for this. but if you give can me a solution for the problem of leaving a company by breaking the bond it would be great. for example: if bond period in one year and one want's to leave after completing 6 months as he doesn't find the job great. and what if he files a case against the company for not providing so and so things and request for experience letter .. of course by adharing to notice period policy if necessary.
From United States, Atlanta
afolabi ajayi

Dear Colleagues,

Bonding in Human Resources is one of the major tools used in Employee Retention. But is should be noted quickly that most times Corporations and even Executives mis-use or mis-apply it to the detriment of their establishment.

Legality becomes relative depending on who is interpreting the document-the bottomline is that at the point of initiation of an Employment Contract all terms of Employment ought to be stated categorically without any ambiguities, attrition comes in when mid-way into your career an employee who has put in say about 5 years is told to come and sign a bond form simply because the Company is sponsoring him/her for a week seminar-which was not in his/her contract papers.

On the other hand-when we talk about bonding-most times Executives do not look beyond thier employees-it should be noted that these employees have other "lives" other than the workplace.

For instance a married lady works in a firm and eventually got to sign a bond document retaining her on the job for the next 2 years- ironically the husband about the same time got an international transfer/posting!

What happens to this couple? Are you going to seperate them because of a document signed or sue them for legally migrating...

The issue of bonding has to be clear to all parties concerned-

*Value of the bond-financial implications

*Period/Duration of bond based on Value

*Method of Computation in case of Multiple/Overlapping Sponsorship

Cummulative or Current Calculation

*Remedies in Case of Default-Pay Back Scheme/Guarranty

The bottomline is that the best kind of bond is the BOND BY LOYALTY you do not force some one to keep on staying on a job if he/she does not want it any more simply because there is a bond document signed-but loyalty would keep the zeal alive beyond bond.


From Nigeria, Lagos
Its easy to file a case against a company by X. But if other companies are aware that the employee has field the case against his former employer , he may not get a change to workin future. This is bcos companies might not be interested to go to court for every employee . At the same time they cant stand against an employee not keeping up the word. Hence they delay in these certificates. At worse case its easy for employer to find fault with the employee and say that his performance was not good.
Hence till a universal law in practice prevails its difficult for employees to go away from bond esp if they are professionals.

From India, Madras

Legally, Bond do not stand a chance in the court of law. However for the protection of employers, the terminology of the agreement on a stamp paper is reflected differently. Some term it as "Bond", some as "Non-competition / Non-disclosure Agreement", some as simply "Agreement" with a few clauses related to protection in terms of service period with the company.
A guarantor agreement by a third party on behalf of the employee stands a chance in the court of law in cases where in the employer has to protect his rights as per the terms & conditions at the time of offer.
However, whether it stands a chance in the court of law or not in favour of the employer is a different question, but there is always a case for litigation where the employee is also pulled to the courts wherein, he has to defend himself running around the courts by spending huge sums on legal expenses.
AR Sai.


i remember reading somewhere that the bonds are not in spirit of law as the employee is not in negotiating position while signing bond.
The two parties should be equal and willing when they sign the bond. In this case employee needs job and he has to accept the condition of signing bond.
Can anyone refer to some legal expert and throw some light if any judgement has been given in such cases.

From India, Mumbai
Hi..This is Lokesh new to forum... I like to know whether the bond gave by me to my employer is worthy or not.
I just signed in a print out paper with some clauses mentioned in it about the bond period and termination rules.
Is that bond is really worthy without "court bond or stamp paper agreements "
Please let me know about that...
Lokesh Valluru

From India, Hyderabad
Hi folks Can anyone tell me whether any indemnity bond holds (or is legal) if there is no insurance company involved? Regards Motee
From Pakistan, Islamabad
HR Info System
My suggestion to u is that dont leave ur current company as you have to breach the bond. If you are satisfied with the working environment and you are getting monetary benefit then dont leave the company. It will not show your stability. This you have to think before you signed the bond, as 7 yrs is not a short period. Although employer is paying lot on training and if employee leaves then they are in loss. Therefore they have this kind of scheme.
From India, Pune
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