Legal Analyst, Hrm
Hr Manager
Human Resource
+3 Others

Thread Started by #kulu

Dear All,

I Joined one company on May 21st 2012. I have more than four years of experience in industry but at that time had no job n hand so this company asked me to join as trainee for just 8K and more on that they forced me to sign a bond (agreement) for one year on company letter head. Agreement said that if employee leave organization he/she will have to return three months salary to company. After signing that agreement I started working there and realized that there was no learning and no growth of mine. I felt that staying back there I will just one important year of my career and I left this company in next 20-22 days. Now after around three months of time this company have emailed me to clear the dues with in 48 hours as I have breached the agreement, else they will go legal against me.

So people please guide me what to do. I have just stayed in that company for not even one month. I have not used their resources nor got any training form them and still they are harassing me.

Is there any escape for me or I have been trapped by them now?


31st August 2012 From India, Delhi
Dear Kulu,
I invite you to read a similar post here. It relates to your question except that it refers to teachers in an engineering college
I believe you will get a sense of what your options may be.
Take care!
1st September 2012 From India, Gurgaon
Dear Kulu,
Just stop worrying about any possible legal action against you because of two strong facts goes in your favor:
1. What you signed with company is called one sided bond/agreement and has no legal footing. One sided agreement is agreement where one party agrees to all the conditions as imposed by another party and this is usually looked upon as the party who agreed to is doing it under some pressures.
2. Any employer can't demand more money than what he spent on you (including salary, training etc). If he/she does so it is considered as exploitation and harresment.
So now you got a reason to be happy.
Don't forget to reply to your employer informing him that what he is doing is harresment and if not stopped immediately then you will initiate legal action against them.
1st September 2012 From India, Mumbai
The question arises, did you get your resignation duly accepted from the company and they formally relieved you or you just left the company without serving any resignation notice? You have not mentioned anything about that aspect.
1st September 2012 From India, Delhi
Dear PS Dhingra, I did informed HR through call that I won’t be able to continue further, though I didn’t gave any formal resignation. I just worked their for 20-22 days. Thanks, Kuldeep
1st September 2012 From India, Delhi
Clauses Says:
You commit to serve "Company name" for a minimum period of 12 months as per the policy of "Company Name". However, once accepted by you, it will be a binding contract. This agreement supersedes any/all prior agreement (s) and understanding with the employee.
Employee before leaving the job will serve a 45-days prior notice to the firm. You would be required to serve the stipulated notice period & early release would be at the sole discretion of the management. However, under "Company's" disciplinary procedure your services can be terminated without any notice period. In case violation of the clause, we should be free to take any legal action or put a penalty against the employee.
Failure to comply with any conditions mentioned above in clauses will result in an immediate termination of the Employee agreement, which is completely Management's decision and as a consequence, will require the Employee to reimburse an amount of rs. 24,000/- to the company
1st September 2012 From India, Delhi
Dear Kulu,
Nothing to worry about. Please forward the email which you've received & the agreement to the labour court. No employer/company has the right to take any employee under coercion. Agreement is valid only if it made freely & mutually beneficial to both the parties. Please ask the employer not to give such threat again, otherwise, you'll be taking legal action against him. The agreement which you've signed is totally null & void. It has no any legitimate validity. You can show it to any practicing lawyer.
1st September 2012 From India, Delhi
Just want to comment over this point.
By the way, As per a verdict of Mumbai High Court dated 18.07.2012, all software companies also getting covered under factory act. To get complete details of verdict please google over "Software firms are factories".
This means labour laws and labour court is well applicable in software industries as well.
1st September 2012 From India, Mumbai
See the latest discussion regarding service bond
1st September 2012 From India, Kochi
Dear Kulu,

Regardless of what your legal position is, I don't for one second accept your assertion that your employer forced you to sign a bond.

Do you even know what 'forced' means?

It means under duress, threat, or fear. Are you saying that your employer threatened you to accept the job and sign the bond? If that really did happen, did you go to the cops or any other authority to either report the matter or request assistance?

Come on mate - get real!

The truth is that you accepted a position knowing what you were getting into. When they 'forced' you into signing a bond, why didn't you simply walk away if it upset you so much? Why did you sign it? Was it because you wanted a job when nobody else was offering you one? If that is true, then you weren't forced by your employer - were you? Instead, you were forced into accepting and signing by your circumstances.

As much as you may have a legal remedy, this should be a significant lesson to you for life. And, that lesson is this:

Your Choices have Consequences!

Unfortunately, in this incident, you made the decision, but now, don't want to confront the consequences.

I truly want you to find well-wishers on this forum who can help you out of your 'self-created mess'. But, more than that, I want you to learn from this incident that the next time you take a decision, make sure you do it knowing that you and only you are accountable and responsible for any consequences that follow!

All the Best!
1st September 2012 From India, Gurgaon
Hello Gaurav
I have gone through the link you have provided on this issue in which you and tajsateesh analysed the problem from the practical point and worked out the cost-benfit ratio of a 'choice" or options to be exercised in such situations. . Good analysis.
HR & labour Law Advsior
2nd September 2012 From India, Mumbai
Hi Verma,
If I am not wrong, either party can terminate the contract WITHOUT NOTICE during the probation, isn't it correct?? If this remains as a clause, why does he need to worry?
Moreover, I don't think an agreement/bond signed on a company letterhead is legally valid.
Kulu, You still have the situation in your favor... and may approach Labour Department. Of course, you should estimate the time and efforts investment in doing so.
I guess, you should immediately approach the HR and submit a formal resignation within the probation period. That might help you some other way.
5th September 2012 From United Arab Emirates, Dubai
When your appointment and agreement were in writing, how do you feel that without any recordable document (resignation notice) the company would be obliged to presume that you intended to leave the company at your own will. When as of now you can say that the company forced you to sign the bond, why you would not be expected later to drag the employer to the court of law by saying that you have been thrown out of the company without your resignation?

Formality of resignation letter should have been observed by all means by the employee. If a company provides employment to some one it is his moral responsibility to observe some norms and ethics of employment and not to leave the job abruptly at his own sweet will without fulfilling the conditions and formalities of resignation. The way you have left the company, that way you will be spoiling your own career, as no company would provide you experience certificate and if you make a mention of the experience of such companies in your CV, your background verification by the new company you join would reveal the facts, by virtue of which your service would get badly affected.
6th September 2012 From India, Delhi
Dear Bhumi,
Do you feel that Mr. Kulu can prove the agreement to have been got signed by coercion, if he signed that before joining his duty?
Do, you also feel that any employment should be treated as test gound and transit camp just for 20-22 days by any employee to switchover jobs any time he likes by not following any ethics and terms of employment and even not bothering to submit his resignation and absents from the job as and when he likes?
6th September 2012 From India, Delhi
Dear All thanks for your responses. Just to inform you all that after that email I didn't got any notice from that organization. So for sure they wanted to make employee little fearsome with their policies.
Thanks and stay healthy.
Wish you all a happy new year and Merry Christmas
6th December 2012 From India, Delhi
Dear Kulu, You have done a good thing by informing the latest position of your post which most of the others do not do.
7th December 2012 From India, Kochi
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