Bonded Employment - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Cite Contribution
Community Manager
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is bonded labour allowed in software companies as per labour law??
Bonded labour is not permitted in any industry and there is no special consideration for IT industry. Regards, Madhu.T.K
Dear Aijaz, I guess you came across the training/ travelling bond in a software company. Please correct me if I am wrong in my understanding . Regards, (Cite Contribution)
i cant leave the company for next two years if i join the company, that is what company demands from the employees. if bonded labour is not allowed as per labour law then can we file a case against the company if we leave the company before said period and they claim some amount or they dont give documents???
As per consitution of India bonded labour is abolished in every form. Employment contract is based on AT WILL concept. Some companies have policy of BOND which is based on compensation at breach of contract. This is because company is investing on traning and other specific area on employee and they must not suffer because of early exit of employee. This bond duration and amount must be reasonable and you know finding out reasonablity of reasonableness is tough task. It is better for employee to have microscopic check and think twice before singing appointment letter which have such bonded clause.
White Eagle

Dear Aijaz,

When Software compnaies hire talents a lot of training is provided to make them productive on the project . Furthermore , the company requires the talent to work for a fixed duration to make the talent billable and the project profitable . But when a talent leaves the company after completing the training or samewhere midway in the project, it affects the crediblity of the company. Further it drains the training cost with little or no return.

Hence to mitigate risks , the company offer a training bond to be agreed and signed by the employee , which do require the employee to work for a fixed duration. Incase the employment is discontinued , the talent would require the training cost on the pro-rated / fixed basis , as mentioned in the agreement.

It creates a win - win situation for both as it brings in crediblity to the company and stability to the talent. A training agreement shares the worth of the talent in the market hence add to the employablity.

Hope it answers you concern.

Regards,
(Cite Contribution)

If the company has invested money for the training and skill development of employee, then to that extend the company is in a position to demand reimbursement from the employee who leaves without serving the company till such costs are reimbursed by way of availing services from him. However, no negative covenant is permitted even if it is there in the contract of employment.

Negative covenant refers to restrictions regarding leaving the company or joining other companies, perhaps competitors. The Indian law does not recognize such restrictive agreements. As per Section 27 of the Indian Contract Act, 1872, such contracts to that extent are void and against public policy. No employee can be prevented from pursuing similar work if he/she quits the present one, merely on the pretext that it will be detrimental to the previous employer.

The Gujarat High Court in this context, in the case of Sandhya Organic Chemicals v. United Phosphorous held that, an employee cannot be prevented from utilizing the knowledge and experience that he has gained while being in employment.

Regards,

Madhu.T.K

Thanks every body for giving me the knowledge of the subject. i really appreciate every body for investing his/her valuable time on replying to the question. <b> I joined company as experienced employee and they dint provide me any training. company is AT WILL company. can i claim the documents if i leave before serving the contract period. </b>
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