Regarding Bond - CiteHR
Training Operations - Csr
Hr Manager
Workplace Assessment And Training
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we are doing 2 year bond with employee and taking 2 months salary cheques in advance that if they will breach agreement company can deposit cheques or can take legal action against you if you will not fulfill notice period as well. now employee has left company without intimation, he is telling that i dont like your working process, in this matter what can company take legal action against employee.
Hi, Can you update the his last working day and check the bank whether is the employee still continuing the same bank or not? i am also waiting for updates from the seniour experts.
We have discussed such topics related to Bonds/Agreements in this forum at the fullest. Therefore sugest you to go through the follwoing links and still have any issues, we would reinstate with our views on your further queries.
CiteHR Attribution:

Dear Krushnamekhia ,
All the problem is he is does not like your working process, Then ask him to report the same in writing and then call him up and have a discussion in presence of ur MD and his head if can sort out the issue it is OK, if not u can proceed as per legal terms & conditions mentioned in the bond which he have accepted and signed during his joining.
we to have come across the same situation but discussions helped us resolve the issue and more over the problems what he have said were correct and we have relaid the rules which made many employees happy and working since five years to this day and he won best employee award 2 times.

what you are doing is not legal. Your company might face action because bonded labour is illegal. Please take guidance of good legal expert (authentic). Please also your management if you do not discontinue such practices, you may not get quality employees.
With regards,
Sunil Kumar

no company take any legal action in the case of leaving job. bond refers only rule and regulation of company. if timing boundation is mentioned in bond that is illegal, labour dept can take legally action against company. employees is not Bandhuwa Majdoor. but you r making the same which is illegal.
First understand that bond are not legal. You cannot take or force anybody for bonding the company. This itself is not legal. Above that you are taking an advance salary cheque for 2 months which again is not right. If you go for legal action you would make mocary of your self in the labour court.
Firstly no company or organisation can stop anybody from leaving if he/ she is not satisfied with the work. Similarly it's same with organisation that when you don't like the performance of the employee you ask him to leave.
My advise is you can mark the employee as terminated/absconding in your HR system if you have any and show as release him from his duties from the day he is not coming from work. If any company asset provided to him, you may send him a notice to return the same.

Working practices in India never cease to amaze me!

Can you really force people to work for you for 2 years, and withhold wages to back up this highly unethical practice??

This is 2013. We live in a different world now. Our employees' circumstances change. People are now more mobile than ever before. Family situations and work situations change. People marry, die, get sick, emigrate, etc etc.

In this modern world, no-one, absolutely no-one, can predict with any certainty now where they will be in 2 weeks time, let alone 2 months or 2 years.

To my mind, this is little more than slavery, and that was abolished in most countries a long long time ago.

Employers may argue that if they spend money training employees, then they want to see a return on their investment. That's a very short sighted view. You can spend all the money in the world developing your employees, but if you subject them to slavery, poor working conditions, distrust them and treat them like dirt etc, you only breed resentment and hatred and THEY WILL NEVER be happy productive people. So you have lost your money anyway.

You do not need to bond people. You need to choose the right people from the very start of your recruitment process. Then you develop them, nurture them, build a career path for them, and pay them well. Do all this and you will have loyal employees who will stick with you through thick and thin.

Just what part of treating your employees well do these sorts of employers NOT understand??


I am having doubts in my mind about the subject bond. I am working in PSU where Management Trainees are being recruited in different discipline through direct recruitment or campus selection.. In my deptt a Mgmt Trainee in HR/PER had joined in the year 2010 Aug for two yrs training period and unfortunately he expired on 9th Jan 11 . As per rule an amount of ₹7000.00 only has been deducted from his salary towards bond amount. His bond amount was for ₹3 lakhs. Now his parents claimed for refund of deducted bond amount from the company. I want to know the following points:

1) What is the methodology of calculation of bond amount?

2) If any trainee left the organisation during the bond period without information what action Employer can take legally and also against whom if the ex-trainee is absconding?

3. In case of death(both natural/unnatural) what is the procedure

4. The claim of deceased parents is genuine or not? If it is genuine than what is the procedure for refund and what documents are required for refund claim

Plz suggests me with any circular or any case study

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