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Thread Started by #garggirl

hi my friend was signed a bond with a company for 3 of 1 lakh rupess but after one year she got married now her in law are not allowed her to pursue the job so can any buddy give suggestion company now can sue the emplyee as her father has signed the surity.
23rd February 2011 From India, Delhi
Dear Friend,
Once an employee sign a hree year bond (as mentioned by you) and if the employee leaves the company between the tenure, then the company has full rights to claim the liquidity damage ( as mentioned in the bond)....
In case the employee des not pay the liquidity damage, then the company will but have no chance to send the civil court notice to the employee or the compan can even sue the employee for claiming the liquidity damage....
23rd February 2011 From India, Mumbai
Hi Friend, If the above mentioned reason is genuine then ask your friend to talk to the HR or the management about the issue. If she can convince them, problem gets solved. - Babu
23rd February 2011 From India, Madras
As you have already mentioned, your friend has signed a Bond, which itself means that it is a legal contract and one party can sue the other if other party is breaching the contract.
The only solution is negotiation which your friend can try with the management of her company. It is your friend only who can help herself.
23rd February 2011 From India, Calcutta
Hai Garg girl,
First of all i am impressed by seeing your true care for your friend. As a matter of policy a company the management takes these bond primarily to ensure availability of an individual, as u know that lot of resources are being devoted towards hiring the proper employees. whole of the efforts in term of physical as well as monetary are being wasted away once an employee leaves pre planned. so bond of short duration is ok and generally as a matter of terms some monetary pay-in is tied up for non compliance. Legally and morally speaking the right of company is intact, and company has all the right to sue for recovery of this damage. For this both the candidate and / or the surety can be sued.
However, from legal point of view, framing of contract is a specialized task and as u have not mentioned the details about the company possibilities are that some loop - hole must have been left in your favour, as most of the HR are not from Legal background. But taking this route is not advised due two reasons 1 . this is against the good faith, 2. as you have mentioned that the father may not be able to pay for the fees of lawyer and the other associated expense.
so suggested course of action is to take three pronged strategy i.e. 1. To apply for mercy petition with company management, even through union, if possible.
2. To persuade the in-laws to let the bride join back the company, informing them the probable consequences, as it is very difficult to make a carrier.
3. Request the transfer of the candidate to the location near to her in-laws if the company has any branch nearby.
23rd February 2011 From India, Allahabad
NO ESCAPE. The company has the full right to sue the employee to claim liquidated damages from the employee as per the provisions of the contract detailed in the bond.
However, if the company uses its discretion to waive of the bond amount as a special case, your friend can be saved. Better try to convince the competent authority through the concerned HR department that the employee has neither taken up any job, nor intends to take up any job in the near future due to the reason of her in-laws not preferring her to take up any job.
BUT, if the company still insists to pay for the bond, why her parents should bear the penalty. Why not her in-laws pay the bond amount, who have forced her to leave the job.
PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi

24th February 2011 From India, Delhi
My Dear friend,
There is solution of every problem. I would like to know the full details of the bond.
Some time we have to break our promise because of some unwanted situation.
Please send all the terms & conditions mentioned in the bond.
Best Regards
Modi Ashok Kumar
24th February 2011 From India, Bangalore
Actually speaking, any bonds between company and employee which curtail basic fundamental rights of individual are illegal and can not be executed. In this case the Bond in my opinion is illegal and can not be enforced. Pl take advice of a good lawyer and sue back the company... in India "bonded labour" is prohibited and any attempts of signing such bonds amounts to bonded labour. The Bonds were signed by the employee under compulsion of need and it amounts to exploitation of situation by the company.
Further to my above post, however, there is specific case for Eg if the company has incurred cost on specific training of the employee which provides her emmence advantage in future... say, a employee was sent abroad for some technical training which is very specific to the job and in such case if the employee has signed a bond then such bonds can be executable!!
24th February 2011 From India, Rajkot
Every Contract and bond has a clause of termination kindly act as on that clause. even I agree with Kdccorp but today in this high attrition based scenario companies do find some measures for reducing attrition and loss of talent and knowledge. My suggestion is it can be sorted out by mutual consent with your seniors and HR department and try to convince them that the problem, they will certainly give you a better solutions also do read the clause of jurisdiction to be on safer side.
24th February 2011 From India, Pune
Section 5 in The Bonded Labour System (Abolition) Act, 1976.
Section 5 : Agreement, custom, etc., to be void.- On the commencement of this Act, any custom or tradition or any contract, agreement or other instrument (whether entered into or executed before or after the commencement of this Act), by virtue of which any person, or any member of the family or dependant of such person, is required to do any work or render any service as a bonded labourer, shall be void and inoperative. CHAP EXTINGUISHMENT OF LIABILITY TO REPAY BONDED DEBT CHAPTER III EXTINGUISHMENT OF LIABILITY TO REPAY BONDED DEBT
The above message will disquallify the contention of any management who is emphasis on signing BOND's.
Naveendran David
A head hr of an MNC
24th February 2011 From India, Madras
It is your freinds moral and professional duty to honour the bond. If in future condition changes and she needs the job than her this attitude or action of not honouring the bond may go against your friend.
Ask her in-laws to pay the damage.
24th February 2011 From India, Vadodara
Generally, service bonds are illegal in India as they are said to be one sided contracts. The Supreme Court has stated that by entering upon a contract of employment a person does not sign a bond of slavery and a permanent employee cannot be deprived of his right to resign
However, if the company has spent money for grooming the employee, which is not a usual training, and the employee has been asked to sign a bond for such grooming, then the company may initiate legal proceedings on breach of the bond.
Rijuta Misra
Legal Executive
24th February 2011 From India, Rajsamand
Dear Naveendran,
This is the answer for which i have been searching on many forums, i too said the same to couple of colleagues and friends. some of them argued " if it so, why many organisations are taking bonds, including large organisations". i quoted the same section of Bonded labour act. still they denied my point.
Your comment boosted my point.
Sankar Alla

24th February 2011 From India, Hyderabad
I fully endorse the opinion of kdccorp but how this bond system got this umbrella for MNCs I do not know.
24th February 2011 From India, Tirupati
It is surprising to hear that the girl has been asked to leave the job during bond period by her in laws who should understand the heavy penalty to be paid. If they still wish that their daughter-i-law should leave the job then they should pay the penalty.
24th February 2011 From India, Hyderabad
Hi Team,
As appropriately commented by Modi Ashok, it depends on the terms laid down in the bond & the substance in the case (ground created for the case by the Company). For example, if the bond talks about commitment for a defined period in return to the training provided, the Company has an upper hand.
Please reach me for any further clarifications.
Satheesh Thalapalli
M: +91-98660-17111
24th February 2011 From India, Madras
Send a registered AD letter to the company siting the reasons why u cannot continue the job.For the sake of your marraige.And also know that there is no bonded labour in India.Or else u can always give some medical reasons for leaving the job.
24th February 2011 From India, Ahmadabad
Hi,Here not mentioned company's condition, whatever it may be given in her bond. But as general rule is if you leave/regained in company/institute, you should be informed one/three month notice to the company before leave.or paid one/three month salary as per given condition in your bond.Because it is your right either you continue or break a same company work. Mahendra12
25th February 2011 From India, Mumbai
There are two sides to the issue. 1) The company which has spent time, money, energy & efforts on this person has secured a contract to protect their interest. Whether legal / illegal, will stand the test of law etc is secondary. let's for a minute put ourselves in that position & imagine as to what will be our response. In all fairness the opportunity would have gone to another person wherein that person & the compnay would have benefitted, had your friend in the first place thought of these things. 2) Speaking for your friend, yes it is not entirely her fault that this situation has come about. Her intention at the time of hiring was genuine but has now changed now. Possible options can be - discuss with the compnay HR to 1) Take a break now & join after may be 6-12 months. may be things would have changed by then. 2) Explore work from home options for the same company 3) take a break & pursue higher studies with an undertaking to work for the same compnay later in a diff job / location. 4) Work on your spouse to see the bright side she being a career woman. Well,If none of the above is workable, negotiate for reduction in the bond ( some %), agree on EMI mode payment spread over a period of time which may be good for all concerend.
25th February 2011 From India, Madras
I absolutely agree with the following statements of Vedwati. As in my viewpoint this is apt to work mutually may be with company or in-laws of the lady. All the best.
25th February 2011 From India, Hyderabad
Hi I am Siju Mathew, and I am not a HR. I am bringing in a different dimension to this issue. It is a genuine query which I have come across with many people. To my knowledge and discussion with various people I found that signing up a bond in itself is illegal. The company can never take you to labour court if you are violating the contract which you sign as a bond. Secondly if the company holds your rights citing the bond then as a consumer and an employee you have all the rights to take the company to the court.
25th February 2011 From India, Madras
Whether the following is applicable upon the bond or not? Section 5 in The Bonded Labour System (Abolition) Act, 1976
25th February 2011 From India, Chandigarh
Dear Garggirl,

after going through you concerne for your friend, let me inform you as per the provisions of the labour law no company can forcefully retain any employee. However the employer has the option to go for a bond in case he has invested on the employee for any training or anything such thing.

You might have noticed many companies take an agreement from an employee before joining for a period of 1 year max an if wishes to resign after the completion of 1 year has to give 2 months notice. and in case he wishes to resign before that he has to pay a certain amount (normally 1 or 2 times of monthly basic pay)which the employeer might have spent on sourcing the employee through some consultant, but that is also a maximum period of 1 year.

Here you say the bond is signed for a period of 3 years and any breach of this contract the employee has to pay 1 lacs, this needs more clarity why the bond was signed for this value.

If the bond was signed for no reason like no specilised training being provided by the employeer you have every right to take a legal course of action.

Better to consult some person who is conversent with labour laws with Legal aspects.

25th February 2011 From India, Hyderabad
ask your friend to daily come to office late, and leave early, show low performance, shout in office and throw tantrums, ultimately then assign it as some family , marriage pressure, then HR itself will relieve your friend with that james bond....
When HR talks about bond and rules we have to be smart and make them break their own rule, so ask your friend to behave as such that HR itself will ask your friend to resign.
25th February 2011 From India, Madras
Dear All Haryana Govt revise the Minnimum wage from 01.01.11 here is attachment for your refrance regd/naresh khola
25th February 2011 From India, Delhi

Attached Files
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File Type: pdf Minimum Wages Notification.pdf (1.59 MB, 43 views)

The provisions of the Act applies to the labour force who are under agreement to serve on account of some debt from a particular person. The forms of forced labour is --
Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti.
So the service people do not come within the purview of the bonded labour Act.
Of course the Act has the need to be amended to cover up any type of bond.

26th February 2011 From India, Delhi
Though the reason cited by your friend is genuine rules do not sometimes accept this excuse as she knew that she hasd signed the bond for 3 years at the time of recruitment. In my opinion there are only two/three alternatives to this problem
1) Give a representation to the company requesting them to waive off the penalty as she is forced to quit due to a genuine reason.
2) Somehow manage to pay the money.
3) Consult an advocate to find loopholes to come out of this problem.
4) Try with the company for reduction in penalty amount.
27th February 2011 From India, Hyderabad
I am fully aggreed with KDCCORP. There is no any law to bond an employee by a company. Don’t afraid. Suresh Thakur
28th February 2011 From India, Delhi
Dear Friend,
In order to beat attrition and to attract talent, the employers have been engaging the employees and as such it has become a common practice to have an agreement with the employees that for a specified period, such an agreement will not be constitutionally valid which has been repeatedly clarified by the Supreme Court and the High Courts. Reference is made to a case wherein it has been held that Freedom of changing employment for improving service conditions is a vital and important right of an employee which cannot be restricted or curtailed.
American Express Bank Ltd. vs. Ms. Priya Puri, 2006 LLR 682 (Del. HC)
Thanks & Regards,
Jayanta Basak
HR Professional
2nd June 2011 From India, Calcutta
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