Madhu.T.K
Industrial Relations And Labour Laws
Mahr
Head - Human Resources
+2 Others

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Dear all,
there a situation for which I need expert's help.
I am working with my current company from last 2 years. I was given a training to enhance my skill for one of the specialized job of the company (that skill is not useful outside the company) and for that I was asked to sign a bond of 3 years. If I breach the bond there is a huge amount I have to pay. However at the time of joining or in the appointment letter nothing is mentioned about the bond as it was asked to sign after joining.
As per the bond I cannot leave the company but company can ask me to leave at anytime they desire.
Now my question is,
if I leave the company before completing the bond period, what can be the consequences?
I have all the records of the money spend by company over my training and that amount is not so big, but the amount for which the bond is signed is very huge.
During my job I have earned very huge amount of revenue for the company which in 10's of multiples of the bond amount and I have records for that too.
I am getting a better opportunity now and the current employer is not taking care of me as an employee much. I am asked to work for more than the specified hours in the appointment letter, no holiday's no weekly off...etc.
under this condition could anybody give me correct advice.
Thanks in advance
Rahul

From Saudi Arabia, Riyadh
If your situation is analysed from the point of view of Industrial Relations, the agreement or bond signed by you is invalid and not maintainable. But if you have been appointed as an employee in the managerial cadre and the bond is signed in the same capacity the matter may have to be referred under the Contract Act. Under normal circumstances the bond amount shall be limited to the amount spent on training of the employee only and the issue comes in to picture only when an initiative is taken by the employer against you when you leave the establishment.
Regards,
Madhu.T.K

From India, Kannur
I agree with Shri Madhu that Bond amount should not be higher than the expenses made by the employer towards the training sponsored to you for enhancing or developing skill that you were not in possession of prior to that training. It may also include the salary paid during the training, training cost, loading boarding and any other directly connected to the training. But if the amount is huge than this, most courts do not will not entertain. Hope this will answer some of your queries.
Thank you

From India, Ahmedabad
Dear Rahul, The monetary part of the breach goes only to the level of what the company have spend for your training and to the loss of the company on your absence (very rare)....
From India, Bangalore
hi rahul,
whatever the matter may be...if you have signed a bond and in lieu of training..untill and unless the cost is recovered(which will be mentioned in the bond), the bond will be valid and in case you left the employer, they can sue you on that behalf(and believe me, decision will be against you in this case..)
solution:
if the current employer is not taking care of you then ask for the unnecessary leaves or do whatever they dont like...they will ask you to leave and you can be free from the bond with dual consant.
regards
ruchi

From India, Chandigarh
Dear Madhu, Raj ,Mahesh & Ruchi,
Thanks a ton for the time taken by you to read my post and to reply it.
My current employer has utilised my skills to the maximum extent (just imagine very few holiday, very few weely off, and more than 10-12 hours working). and coz of this comany has recovered the amount mentioned in the bond long back.
well I am not in the managerial cadre in thie company i am a service engineer.
Ruchi, the solution suggested by you sound good but mine field is very limited and its very small cirlcle, if i misbehave in this company or do any this kind of conduct, it would not be a wise decision.
But i had read somewher that one sided bond is not valild as per the labour law of india, is it true?
actually the company is quite small but still making very good profit even in this recession period but when it comes to profit sharing, its shared amongst the top management level and managerial cadre only. this is the major reason for frustration.

From Saudi Arabia, Riyadh
If they can prove and if you had infact got any expensive training you will have to pay the training cost and what ever other expenses that the co may have incurred
Most companies have their employees sign some kind of training agreement to retain the employees and if they decide to leave they start troubling them
Many companies send legal notice to employees but for court they need evidence like training fee details, training certificates , training venue etc which they cant even show
The in house training is not considered as cost involved training - few companies on the day one give some kind of training sessions like 'know your company', HR practice and blah blah blah
Do not worry and think your case stands nowhere - If they send any legal notice instead of giving money to them spend on some good lawyer

From India, Pune
I am also facing a same problem like this. I am currently selected to join Indian Army. Therefore i left the company. I want to know with that signed agreement can they file a police complaint against me???
From India
hello everyone is there legal employee bond with Security deposit, 1. if you leave the job before 3 year you have to pay 6 month salary 2. security deposit will refund you after leave the job.
From India, Aurangabad
No, there cannot be any bond in service agreements. You cannot insist for any security deposit also.
From India, Kannur

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