Employee Commmunication
Hr- Generalist
Service Industry
+10 Others

Hi sir,
I am a fresher i got a job by college campus recruitment.The company took 2years bond paper from us.I am in probtionary period of 2month .If i leave company then in bond paper mention to pay Rs 1lakh.Now my health problem arises due to night shift i inform to everyone in our company but they didn't consider my health problem now i wants to leave this company .I am so scared for my future and my education.Please sir guide me.When i told about my health issue they tell to take legal i am continue my training.
22nd March 2012 From India, Bangalore
Hey Pinku,

I am really sorry to hear about this. To be completely honest, I could have faced the same problem had I not taken a decision to which all my professors were upset with me. During the recession year, I was selected to a company through campus recuitment. They also had a bond to be signed. I was even ready for it because the company was a brand to be with. However, Fortunateyl beofre I could take up the final offer, i had a chance to work with my superior for two months on trainee basis. After working for two months with her, i relaised I can't any go further and declined the lucrative offer. It took me sometime, but finally I got my dream job.

Anyways, about your problem here, I am not very sure if you can do this, but please find attached the document which I found just minutes ago on CiteHR thread only. It's on 'Bond of Employement'.

I really wish I could help me, but sorry I am not experienced enough to advise more. But I am sure, our mentors and experts can help you out.

Wish you luck. Take care.
22nd March 2012 From India, Madras

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File Type: pdf Bonds in employment-negative covenant in contract of employment.pdf (108.5 KB, 2850 views)

Hey Pinku,
The article highlights the fact that Companies should not use any bonds or such contracts anymore because it violates the fundamental rights of citizen to pursue a better employement opportunity. It has given case laws wherein the employers have sued their ex-employees for breaking the terms of employement. The Court in such cases waivers the contract and states that 'Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void' meaning the agreement is not legally binding on the employee if it stops him/her to pursue a better employement opportunity.
I think you can take help of your mentors at college or any known expert in society who is in law profession. Make them read your bond papers and understand the law language. It will be difficult but you need to be patient and perseverant.
All the Best Luck!!!
22nd March 2012 From India, Madras
Thanks chadan,
But they told to me to take legal action if you leave the company,I dont know what should be the legal action.I am also didnt complete my training period is it right time to leave the company.
22nd March 2012 From India, Bangalore
Hey Pinku,
1) To know what legal action can be taken and how much is the chance for the law decision to be in your favour, you shall have to consult a lawyer or a professional who can help you with this as it shall depend on your bond clauses too.
2) Whether you complete your training period or not, thats not important. Important is whether you are ready for new job or not? You might have an offer in hand, which you can join. OR else you might have to look for a new job meanwhile you may remain unemployed. So are you ready to be unemployed for sometime till you find a decent job for yourself? Moreover, Make sure next time you don't get into hassles of bonds or contracts. Also if the new job has any bond, understand the clauses properly before signing on the dotted line.....
Wish you Luck!!!
22nd March 2012 From India, Madras
The reason company ask employees to get in contract (bonds) is because they spend money and time (investment) in employees training so they want return but in your case they have not much trained you i believe (because you have only spent 2 months in this company and not even completed your training) and if they say they will take legal action against you then ask them to take it because they gotta prove that they have invested in you ( which justifies the amount they are asking you) and in your case it won't be possible

the restriction contract imposes must be valid if they are not valid then contract is not valid

more then this Indian court in several cases has held that bond signed by employees against provision of section 27 of Indian contract act which says- Agreement in restraint of trade void.- Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void which means don't worry you can leave this company they can't hold you because this is violation of your freedom.

more over if there is any more problem feel free to ask
22nd March 2012 From India, Calcutta
one more thing Pinku read your agreements and contracts thoroughly and try to find out if there is anything that is not mentioned but you are asked to do, like were you aware of the fact that you will do night shifts, how long you are working in night shifts, time mentioned (hours) to serve but how much you are actually serving, these voids from employer side in contract will also help you, and you said your probation period is 2 months then how long actually you working here from
22nd March 2012 From India, Calcutta
Hi Vandana,
Thanks a lot.
They mention only night shift but they call me at morning 4:00AM and 6:30am on maximum days according to their choice.In bond paper there is not mention to work on sunday,saturday but they call me that day also.Somedays back i am suffering due to my health issue but they didn't consider my health problem.
Only one thing i want to know this company bond is create problem in my future or not.
This Article shows what?This company bond are legal or not.Plz advice me.
lagnajit dash
22nd March 2012 From India, Bangalore
Dear Pinku,
No employer, just by getting the bond signed can stop or penalise you from quitting or changing a job, except the case that they have invested on your training. If company takes any legal action, it can only penalise you in case they are able to proove that they have done investment in training you. Even, in case they are able to proove their investement, the maximum amount recoverable is the amount spent on training plus interest on it.
In your case, correct me if i amwrong in undersatnding the case, i feel that no investment is done on any sort of training. So dont worry, pay attention to your health. Job can be taken up again once you regain your health, but if health is neglected, it will be difficult to do job even.
To be more cautious before taking up any decision, you can consult some professional law person.
Let me know your decison & outcome. All the best.
22nd March 2012 From India, New Delhi
see i just mentioned in previous comment of mine that though according to section 27 of Indian contract act employment bonds are void as they restrict individual to exercise lawful profession but on the other side contract (always comes with) imposes some restrictions but these restrictions should be be reasonable, if they are not valid then contract itself dissolves, today seeing the attrition problem company make the non-reasonable policies and contracts to hold employees and employees follow it because of unawareness for example if they call you on Sunday for work do they provide complimentary off in return (provided you marked your attendance on Sundays as a proof) if not tell your boss that they ask you to work more then 48 hours a week (violating law, the maximum working hours weekly is 48 hrs and 9 hrs a day excluding the break time)

if company says they gonna take legal action that is just to scare you, they know you are fresher and naive so they are trying to take you down but don't worry you can leave them because you even didn't complet your training so they didn't invest in you and they are exploiting you (calling you on sundays for work, asking you to work when you are ill),

one more important question you said you complained about health problem... did you applied for leave(and they rejected it) did you send a written application (and had no response) these are important thing (keep in mind in future always make request and complaints in written to prove its authenticity)

which state you work in .. is it a manufacturing unit or service one do tell me , how many leaves are granted to you (leave policy of company) .. lets see how many rules your company follow.

plus you can leave your company they won't be able to do anything
22nd March 2012 From India, Calcutta
Thanks Anu,
But now i am in training period i just completed 2month.Total training period is 3month.But in training period other fresher are there including me.They didn't train me indiviually.I want leave this company .Actually IT company bond is legal or not.But they send a notice who left this company.
what is single side and two side bond can you please guide me.
22nd March 2012 From India, Bangalore
Thanks vandana,
I send a mail to manager,team leader about my health problem.I thought they concern about my health but they didn't.Rather they told take legal action.They created some issue due to my health problem.I sumbited my medical certificate to team leader.and told to HR also.
This is one type IT enable service company.
Lagnajit dash
22nd March 2012 From India, Bangalore
Hi anu/vandana, Now i am student i not completed my education but got job in this company.Can company take legal action against me.In case of court what will be their suggestion. Thanks, pinku
23rd March 2012 From India, Bangalore
Re: Employee Bond.
At out set, stop worrying about any sort of bond unless your principle or Employer have proof of Investment on your Training and also engaging employee without such Monetery Investment is qmount to the case of Bonded Labour which ought to eradicate.
This type of culture to retaining good manpower is the result of Indian Globilisation.
Companies HRs also aware of this and if concern have cordial relation then no problem will come.
Tharani ML
Sr Member
23rd March 2012 From India, Madras
Dear sir, Please find herewith High court judgement copy regarding Bond.It will help you out for these problem Thanking you Your respective Ashish
23rd March 2012 From India, Pune

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File Type: pdf High Court Judgement on Breach of Bond and Quantum of Compensation.PDF (3.51 MB, 287 views)

Hi, You can show a medical emergency, and the bond will stand cancelled.But, this should be on papers. Regards, Shweta
23rd March 2012 From India, Delhi
employment bonds are not valid legally go ahead nothing to happen in require complete details about employment bond read t.k.madhu hr manger quote in cite hr site you will get all the details
24th March 2012 From India, Hyderabad
hello everyone

As per pinku query, i want to also now in bond it was signed only in night time but they are also calling him in morning time and week days off . pinku signed a bond also so if he refused to come on weekend off or morning time than it happens mostly they put mostly workload at worktime and they also try to harrash , than which type of step we can take? is there any legal action.........
plz rply
25th March 2012 From India, Delhi
is any of our academic or progress report is with the company. If you have submitted any certificate then it will be very difficult for you to leave. But if you have not, then just leave the company they can,t do anything.
25th March 2012 From India, Ahmadabad
Health is of upmost importance, do mot loose it.

Tell your employers that you have also consulted legal consultants and there are Supreme Court judgjements against such unlwaful Bonds.

The maximum risk, i think you face is not getting an experience / relieving letter and your current employer contacting your future employer to ruin your career (just to staidsfy their egos). So do not at any cost let any one know where you are joining next. If you have your PF dues at teh old organisation - just let it go or keep silent until you have made a rapport in the next organisation.

If you are bold enough, tell them that if they do not releive you in a peaceful way, you shall put up the whole matter with their names and the organisation name in all social sites, and employer review sites. You will let all employment consultants know of their behaviour and may even write to media about their coercive tactics.

These bons are meant for people who do not know the law. Do invest in consulting a good lawyer if you would want to feel more confident.

All the best.
26th March 2012 From India, Mumbai
Dear Pinku,
I am an entrepreneur, running a MNC.
If you would have been my employee then i would have no interest in holding Employee like you who has not even completed six months. since i made No Investment or negligible investment.
However I should not have allowed a Message to be passed to all My employees that " Leaving a person without completion of his tenure has not been penalized".
Further in your case ,since you have a medical background, so you should be allowed to leave as you are no more beneficial for the company.
Last but not the Least .The constitution of India says" NO MEN CAN BE RULED BY CORPORATE UNDER ANY SITUATION/CIRCUMSTANCES"
So even if they take a legal action, you would be in wining the case at end.
hope this is the answer of your Question.
your well wisher
26th March 2012 From India, Delhi
hi i am vinay seeking for job can any one give me info about IT and Non IT Recruiter. kindly give me info soon,please give me info about IT and Non IT Recruiter. Thanks and Regards in Advance.
28th March 2012 From India, Bangalore
Stuck with an employee bond

Dear Pinku,

I understand that u have signed an agreement for training. They wont accept your health conditions in any of shifts. Becuase, in IT's and BPO, the organisations are running in 24/7 basis and it is well understood that turn in the night shift also come into the picture. Before accepting offer letter, this would have been clarified. Now, this is too late to think of this issue.

once you signed an agreement, you have to follow legal stipulations or pay the training cost for 2 months and upto the last day working after submitting resignation. If it is professional organisation, they will collect the money only for this.

If you are breaching contract, then they will initiate legal action sending initially vakil notice to you . Then third party investigation will be conducted for your new employment. Legal notice will also be sent to new employer which will create a embarasing situation for you. Then you have to contact your legal advisor or answering the legal notice issued by the employer. you will be in dilemma whether to proceed further or pay the entire amount to the company. If you are again willing to pay the dues through court, they will charge the entire amount including their advocate fees and admin fees which will be much higher than your actual cost.

Agreement in restraint of trade void.- Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void which means don't worry you can leave this company they can't hold you because this is violation of your freedom.

According to the definition, it is justifiable. You need not worry about the contract. Accepting this, why company is taking legal actions against the erring employees? Professional organisations will not hold an employee irrespective of their tenure. Major Auto ancillary organisations in chennai follow this contract for training period, regular employment contractual period for every 4 year, and a bond for 5 years visiting abroad also.

Before accepting job offer, we must be doubly analyse the pros and cons of the formalities of the employer.

therefore, you are requested to pay the training cost and get relax from the mental agony.

Looking forward to see your decision please.

Good Luck



Agreement in restraint of trade void.- Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void which means don't worry you can leave this company they can't hold you because this is violation of your freedom.
29th March 2012 From India, Madras
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