Hr Manager
Hr Senior Executive

Is it basically Statutory to put employment bonds(To prevent employees from leaving the company)?
If yes, then are there any period restrictions?
What about the outcome of majority of cases if the employer takes it to the court?
Please give in your valuable comments....
1st January 2007 From India, Madras

I have been working on this section for quite some time. Bonded labour is a condition where the employer restricts the movement of workers or staff. As per the statuary law no employer should bound the worker or labour for a specific time and the worker or labour has the freedom of movement.

But when we talk about companies where training/technology piracy is main concern for the employers that new employee trained for new technology or provided with latest technological know how, he might opt to join another company with better package.

The company can opt for right to priciple clause in the appointment wherein new candidate is bound not to use the company's name and other activities for some specific time period. The candidate upon completing certain time in the company can be issued letter for for using company's details as per the instruction from the management.

There is more more clause i.e service to contract. The company can enter into service of contract for some specifies time (That has to be mentioned in the contract for service) say for example this contract is between employer and employee to associate themselves for a period of 3 years from 21/10/2000 to 22/10/2003. Other conditions of contract are then followed as per the contract act.

Suresh Sharma
1st January 2007 From India, Jaipur
Ur term of bonded labour is wrong....Definitely we cant ask people to work under any circumstances & it is neither supported by any law.
But Yes...If u can do an analysis of ur company & find out the key strengths....Like if ur technology is very different & u need to invest a lot into training of new entrants....U can definitely get them to sign a service agreement for a specified time & that too with proper clauses & remember ur service agreement should spell out everything very clearly.
We need to put clauses where we can defend ourself rightly in the court of law. But ur agreement has to be for a specified time.
2nd January 2007 From India, Pune
hi pooja
Actually speaking the terms bonded labour as defined by law has different perspectives. In general I am referring to conditions where turnover ratio is high and generally taking into consideration the junior staff and middle management staff.
In the appointment letter you can add the clause of minimum service period taking into consideration the kind of training you are imparting to the new employee. Moreover we can extend the clause of minimum service period by entering to service agreement for specific period but either party can give notice of specific period to end the service period. The service paid is a binding on both the parties.
Suresh Sharma
3rd January 2007 From India, Jaipur
Hi Suresh,
I completely agree that service agreements is abinding to both parties. We usually forget that in the process of getting service agreement with candidates, we at times have to continue with non performers bcoz of the service agreement.
I think today we as HR representatives should think of alternative like getting into agreement with competing companies to avoid this high attrition. Finally all the companies no matter whether they are big/medium/small are getting affected bcoz of attrition.
3rd January 2007 From India, Pune
Hi pooja,
that is true. Attrition is a major problem with most of the companies specially where I am working. This condition of service agreement has been sucessful in my organization. Regarding non performers that depends upon our hiring procedures and in normal course of hiring we see the stability conditions and performance of the candidate.
Moreover it is virtually not possible to stop the candidate but we have found a way that in case of no performance the service agreement can be mutually dissolved.
Suresh Sharma
3rd January 2007 From India, Jaipur
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