Business Development, Employee Relations,
Sneha Joshi
Hr Manager
Sr. Hr Executive @ Polymerupdate
+4 Others

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Recently i joined a company bebo technologies in chandigarh,during joining i signed a 2 years bond on a stamped paper  and next day i asked my HR to provide me the photocopy of the bond but she refused, and also i want to know does the bond hold any importance if i break it as in the bond it was written the person has to pay his 6 months salary or 1 lakh rupees whichever is higher. I am given 10000 rs per month which is very less and the work they give is vedy much , the company is also an active NASSCOM member ,so iwant to ask can breaking the bond will put me in risky situation .  Please reply as soon as possible
From India, Santokhgarh
If you are fresher & company has taken you as trainee & spent after training you then management has all right to take legal action against you.
From India, Daman
Dear Members,
Please refrain from using your cmpany's name on Blog. Lets be professional.
Answering your Question.
1. Yes you can request the copy of bond which you gave. Give the letter in writing addressed to the GM/MD/HR.
2. If you pay the money that you agreed to when signing the Bond, no issues. But if you abscond from company, the company may black list you, which will effect your career.
"Why do employee agree to such bond is a wonder. What if the company terminates during the Bond service period. Are they going to pay you for the entire balance service. . "

From Saudi Arabia, Riyadh
Look before you leap. Having lept, it is no use complaining that you are caught in deep waters. At least now be discreet in making proper decision. Either you complete two year bond period or be willing to pay the bond amount which you did not mention.If you break it, you not only render yourself liable for the bond amount which is enforceable in a court.You can ask a copy of the bond for your records.
HR & Labour law advsior

From India, Mumbai
I do have question regarding this, as few has given answer that the bond is not legal then I would like to know one thing there are bond in big companies like TATA and infosys, so its mean that they are running any illegal policy?

From India, Pune
Guys let us familiarize ourselves with one concept - All forms of 'bonded' labor is illegal. It is technically not a bond, it's a financial recovery agreement between you and the employer to extract the training fees and investment made, you are playing your part by staying in the company.

In a situation you are unwell, meet with an accident that makes you mentally / physically unfit to take up the job, do you think the bond will hold any good? This is a common case with BPO employees where many do not adjust with night shifts. Point is, if you have adequate ground, you can legally exit the organization.

I assume, you are physically / mentally unwell to do your job. Best deal is it get hold of a lawyer, attach medical certificates and send your organization an exit notice. Most companies do not have a legal department and dont want to get in a legal hassle as it damages reputation [also it's very expensive, as corporate lawyers charge a lot].

I really don't understand the concept of holding people back - do you really want a team full of people who hate their jobs and spread bad vibes in the company, not me. What if they stop performing? In this case will you still pay them for wasting time and making errors?

From India, Mumbai
Whether that's legal or not is a separate question but your affirmation itself proves that you've signed the agreement when you were mentally & physically fit - which means that the company reserves right to claim damages if you go against the agreement.
And at this juncture of your career, do you think it would be logical to get into the legal fights?? It would not only affect the company's reputation - which you are least concerned about - but will hamper your career to great extent. The best way is to stick to the agreement and complete your prefixed tenure or be ready to pay the penalty.
Remember - ideally you must seek guidance from a labour consultant or lawyer before signing & agreeing to such bonds. There are ways to get out of it but not without cost (monetary or otherwise).

From India, Ahmedabad
Hi Amit,
During my HR days, I was informed by our professors that service agreements are legally not binding to the employee.
Labors Act has clearly mentioned that employers cannot exploit employee with service agreement and can't recover the cost of bond. However note that this is for untrained/unskilled labors. For employees who are given training, are liable to pay the cost of training that company has incurred on you, as they would not have your service which would give them a leverage on it.
So if incase you are breaking the bond, you are liable to pay training cost. The details need to be smartly drawn.

From India, Mumbai
Hi Sneha,

It is very correct that any form of bonded labor is illegal in India.

Signing a service contract/agreement don't give any organization a bad impression.

One needs to understand the fact that the only reason companies make you sign such bond is so that employees should take the work seriously. It is to reduce the attrition rate only for the sake of money issues.

I have known a few people personally who have taken up employment in a firm only because the firm was giving a training on an area, which otherwise would have costed them a lot. Here, instead they were getting paid to learn. After the training period, these people left job. Since the firm was smaller one, they had not gone into service agreement thing. But imagine a reputed organization who employ and train thousands of employees annually, and they leaving the company without generating revenues for them.

There are many companies, (one of which you mentioned) who do make employees sign service contract, but do not recover amount on they resigning and relieve them happily. They do not make a fuss of legal liability of the bond. They might be asking for training cost which is meagre compared to the bond amount quoted. Also they charge based on the amount they've already recovered from the employee from their job. So if you are leaving this organization after company recovers the cost of training you, it won't charge you a penny.

Hope it cleared your doubt.



From India, Mumbai
Dear Amit,
Have you received any training against that bond. if not you need not to worry. I am giving answer to Sneha's question Tata, Infosis or any other big giants do provide training against those bonds. Please let me clarify two things here
1. Do not confuse yourself between Bonded Labour System, which is illegal in India and the valid contract bond which is executed validly in lieu of any training provided to the employee by the employer.
2. The purpose of this contract bond is to recover the cost of such training which the employer incurred on the training of an employee as the same is an investment from employer to generate revenue, which he is validly and legally entitled.
I am mentioning this link and please read the experience of Rekha Bhanu on page 6 of the thread and decide for yourself.

From India, New Delhi
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