Hello Everyone. I recently received an offer from a reputable company in Hyderabad (I can't mention the name) and they have asked me to sign a "Bond" for 2 years on the day of joining. This would also require the presence of a guarantor, who in my case is my brother.
While in our PPT (pre-placement talk), they informed us that we have to work with them for a minimum of 2 years. So far, they haven't shown us the service agreement, but they have provided me with the "Deed of Guarantee," which includes the following points:
- Pursuant to the said agreement dated 16th April 2013 between the Trainee and the company, and at the request of the said Trainee, the guarantor hereby guarantees and covenants with the company that in the event of the said Trainee not faithfully performing his/her duties as the Trainee Employee and thereby causing the company any loss, the guarantor shall make good the said loss on demand made by the company, provided that the liability of the guarantor shall be limited to.
From India, Hyderabad
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While in our PPT (pre-placement talk), they informed us that we have to work with them for a minimum of 2 years. So far, they haven't shown us the service agreement, but they have provided me with the "Deed of Guarantee," which includes the following points:
- Pursuant to the said agreement dated 16th April 2013 between the Trainee and the company, and at the request of the said Trainee, the guarantor hereby guarantees and covenants with the company that in the event of the said Trainee not faithfully performing his/her duties as the Trainee Employee and thereby causing the company any loss, the guarantor shall make good the said loss on demand made by the company, provided that the liability of the guarantor shall be limited to.
From India, Hyderabad
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Pl give details about the Notice period from your Appointment Letter/Deed of Guarantee. Rgds, TS
From India, Hyderabad
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1650From India, Hyderabad
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I am sorry I couldn't provide the full details. Here you go:
Hello Everyone. I recently got an offer from a good company in Hyderabad (can't mention the name) and it has asked me to sign a "Bond" of 2 years on the day of joining. And that too it would be in front of a guarantor (in my case my brother).
While in our PPT (pre-placement talk) they had told us that we have to work with them for a minimum of 2 years. Till now they haven't shown us the service agreement but they have provided me the "Deed of Guarantee" which mentions the following points:
The pursuant to the said agreement dated 16th April 2013 between the Trainee & the company, & at the request of the said Trainee, the guarantor hereby guarantees & covenants with the company that in the event of the said Trainee not faithfully performing his/her duties as the Trainee Employee & thereby causing the company any loss, the guarantor shall make good the said loss on demand made by the company provided that the liability of the guarantor shall be limited to a sum of Rs. 3 lakhs towards the expenses incurred by the company during the training period of the Trainee and all the damages caused thereby in the event of breach of the agreement.
That, the guarantor's covenants that the guarantee hereby given by him/her will continue and be valid and enforceable, even if the services of the said employee are terminated by way of dismissal or removal, for any such loss suffered by the company prior to such dismissal or removal provided further the guarantee hereby given will stand revoked on the termination of the services of the said Trainee employee for any reason whatsoever, i.e. as per the agreement between Trainee & company, wherein the clauses of the employment agreement are violated.
That, the guarantor's do further covenants that, the liability of the guarantor hereunder will continue notwithstanding any indulgence shown to the said Trainee by the company or compromise made in respect of any unfaithfulness & the guarantee hereby given will remain in force so long as the said Trainee is working in the company.
They mentioned to me that the training period is 4 months (package during this: Rs. 1.8 lakhs) & later the package is Rs. 2.16 lakhs.
I seriously need to join, but then I can't commit to them for 2 years. I have browsed this and got more confused.
Guidance Needed on Bond Agreement
Can anyone guide me through all the 3 points above?
What if I am not satisfied with the company?
Can I quit after a year or so? If yes, then is there any fear of facing legal actions?
What if I plan to switch to another company in a year? What can be the risks and necessary steps that can be taken?
Thanks & due Regards,
Ranthom
From India, Hyderabad
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Hello Everyone. I recently got an offer from a good company in Hyderabad (can't mention the name) and it has asked me to sign a "Bond" of 2 years on the day of joining. And that too it would be in front of a guarantor (in my case my brother).
While in our PPT (pre-placement talk) they had told us that we have to work with them for a minimum of 2 years. Till now they haven't shown us the service agreement but they have provided me the "Deed of Guarantee" which mentions the following points:
The pursuant to the said agreement dated 16th April 2013 between the Trainee & the company, & at the request of the said Trainee, the guarantor hereby guarantees & covenants with the company that in the event of the said Trainee not faithfully performing his/her duties as the Trainee Employee & thereby causing the company any loss, the guarantor shall make good the said loss on demand made by the company provided that the liability of the guarantor shall be limited to a sum of Rs. 3 lakhs towards the expenses incurred by the company during the training period of the Trainee and all the damages caused thereby in the event of breach of the agreement.
That, the guarantor's covenants that the guarantee hereby given by him/her will continue and be valid and enforceable, even if the services of the said employee are terminated by way of dismissal or removal, for any such loss suffered by the company prior to such dismissal or removal provided further the guarantee hereby given will stand revoked on the termination of the services of the said Trainee employee for any reason whatsoever, i.e. as per the agreement between Trainee & company, wherein the clauses of the employment agreement are violated.
That, the guarantor's do further covenants that, the liability of the guarantor hereunder will continue notwithstanding any indulgence shown to the said Trainee by the company or compromise made in respect of any unfaithfulness & the guarantee hereby given will remain in force so long as the said Trainee is working in the company.
They mentioned to me that the training period is 4 months (package during this: Rs. 1.8 lakhs) & later the package is Rs. 2.16 lakhs.
I seriously need to join, but then I can't commit to them for 2 years. I have browsed this and got more confused.
Guidance Needed on Bond Agreement
Can anyone guide me through all the 3 points above?
What if I am not satisfied with the company?
Can I quit after a year or so? If yes, then is there any fear of facing legal actions?
What if I plan to switch to another company in a year? What can be the risks and necessary steps that can be taken?
Thanks & due Regards,
Ranthom
From India, Hyderabad
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You do look 'confused' Please explain the basis for your concerns regarding the two points you made:
1. What if I am not satisfied with the company?
2. Can I quit after a year or so?
On one hand, you mention it's a 'good company' and 'I seriously need to join,' but at the same time, you also say 'but then I can't commit to them for 2 years'—why?
A Few More Queries
1. How old is the company and what is the current employee strength?
2. What was the basis for you to 'feel' it's a 'good company'? You haven't answered this so far.
3. All product companies need not necessarily be good companies, though the scope to learn for persons like you would surely be enormous. It's the stability of the company that you need to look for. What domain does this company make products for—Telecom, Automotive, etc.?
Now, look at your switching within a year of joining from a totally different perspective.
Frankly, you would be a sort of HALF-BAKED CAKE after one year. It's only from the second year that most people begin to apply what they learned at college and in the training programs (whatever training is given). Even though you may get another job after 1 year with a higher CTC, you would be in a situation where 'you are ready to fly, but take a step backwards' since you would surely need to re-establish all over again in the new company—for a few months at least. This is where the stability of the company becomes critical—the reason for my fresh queries above.
Hope you get the point.
Regards,
TS
From India, Hyderabad
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1. What if I am not satisfied with the company?
2. Can I quit after a year or so?
On one hand, you mention it's a 'good company' and 'I seriously need to join,' but at the same time, you also say 'but then I can't commit to them for 2 years'—why?
A Few More Queries
1. How old is the company and what is the current employee strength?
2. What was the basis for you to 'feel' it's a 'good company'? You haven't answered this so far.
3. All product companies need not necessarily be good companies, though the scope to learn for persons like you would surely be enormous. It's the stability of the company that you need to look for. What domain does this company make products for—Telecom, Automotive, etc.?
Now, look at your switching within a year of joining from a totally different perspective.
Frankly, you would be a sort of HALF-BAKED CAKE after one year. It's only from the second year that most people begin to apply what they learned at college and in the training programs (whatever training is given). Even though you may get another job after 1 year with a higher CTC, you would be in a situation where 'you are ready to fly, but take a step backwards' since you would surely need to re-establish all over again in the new company—for a few months at least. This is where the stability of the company becomes critical—the reason for my fresh queries above.
Hope you get the point.
Regards,
TS
From India, Hyderabad
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Thank you for your kind reply. Yes, you are correct that I am confused. I am utterly confused because, through all the sources, the information I have gathered says it is a good company that serves Fortune 100 companies through the products they make.
I want to join the company because I have a few responsibilities on my shoulders, but I fear the fact that, as I haven't worked with them yet, I don't know what's there for me in the future. Therefore, I ask, "What if I am not satisfied with the company?"
And in case I get a better package or a "government job" (which everyone is crazy about, including me), I question, "Can I quit after a year or so?"
Details Regarding the Company and Their Domain of Work:
1. It's a company established in 2005, and it deals in tools for Data Warehousing & Mining.
2. The employee strength is 100 here at the Hyderabad office and the same at their US office.
3. Through the information that I have gathered from the internet and their 1-2 working employees, I concluded that it's a good company (at least for my learning curve - as you too mentioned).
The points that I have made are true, and hence in the same dilemma, I have posted the above questions for some seniors like you to guide me.
Thanks again.
From India, Hyderabad
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I want to join the company because I have a few responsibilities on my shoulders, but I fear the fact that, as I haven't worked with them yet, I don't know what's there for me in the future. Therefore, I ask, "What if I am not satisfied with the company?"
And in case I get a better package or a "government job" (which everyone is crazy about, including me), I question, "Can I quit after a year or so?"
Details Regarding the Company and Their Domain of Work:
1. It's a company established in 2005, and it deals in tools for Data Warehousing & Mining.
2. The employee strength is 100 here at the Hyderabad office and the same at their US office.
3. Through the information that I have gathered from the internet and their 1-2 working employees, I concluded that it's a good company (at least for my learning curve - as you too mentioned).
The points that I have made are true, and hence in the same dilemma, I have posted the above questions for some seniors like you to guide me.
Thanks again.
From India, Hyderabad
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In this case, I suggest you go ahead and join the company. The point I mentioned earlier about the consequences of leaving so shortly in the first job itself is still valid. Please note that you will get a better package even if you leave after 2 months—thanks to inflation. You need to have some clear-cut ethics and goals for yourself, despite whatever and whoever says anything. At the end of the day, it's your career and not others'—who can get away saying anything since they don't have to face the consequences. Like the saying goes: "The only thing that is and can be given free of cost anytime is unwanted advice." It's up to you to take it or leave it. Don't blame those who gave you the advice when you end up facing the consequences—since it's you who accepted and took them.
I suggest you go through the various earlier postings in CiteHR regarding this topic—you will know what I mean.
Another aspect: 2 years is a small time vis-a-vis a long career spanning decades and it's in the first few years (typically 5-6 yrs) that one learns the most. Once you prove yourself, money will automatically follow—this applies to anyone and everyone. If at this stage money is more important than learning and building up your career, it's up to you.
All the best.
Regards,
TS
From India, Hyderabad
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I suggest you go through the various earlier postings in CiteHR regarding this topic—you will know what I mean.
Another aspect: 2 years is a small time vis-a-vis a long career spanning decades and it's in the first few years (typically 5-6 yrs) that one learns the most. Once you prove yourself, money will automatically follow—this applies to anyone and everyone. If at this stage money is more important than learning and building up your career, it's up to you.
All the best.
Regards,
TS
From India, Hyderabad
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Thank you for the advice, TS. At the same time, I didn't quite understand one of your points: "Please note that you will get a BETTER PACKAGE even if you leave after 2 months--thanks to inflation." Were you being sarcastic?
I completely agree with your quote: "2 years is a small time vis-a-vis a long career spanning decades, and it's in the first few years (typically 5-6 years) that one learns the most. Once you prove yourself, money will automatically follow--this applies to anyone and everyone."
I would appreciate it if you could provide me with related links on the same topic (if you are comfortable enough).
Thanks and Regards,
Ranthom
From India, Hyderabad
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I completely agree with your quote: "2 years is a small time vis-a-vis a long career spanning decades, and it's in the first few years (typically 5-6 years) that one learns the most. Once you prove yourself, money will automatically follow--this applies to anyone and everyone."
I would appreciate it if you could provide me with related links on the same topic (if you are comfortable enough).
Thanks and Regards,
Ranthom
From India, Hyderabad
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Thanks for your guidance. I am very positive about joining the company. Just for clarification, I would like to ask the following:
1. **Legal Implications:** What are the legal implications that my employer can take against me if I pursue a government job or join another company (even though I am not actively seeking it)?
2. **Resolution in My Favor:** How can this situation be resolved in my favor if I choose to do so?
Thank you.
From India, Hyderabad
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1. **Legal Implications:** What are the legal implications that my employer can take against me if I pursue a government job or join another company (even though I am not actively seeking it)?
2. **Resolution in My Favor:** How can this situation be resolved in my favor if I choose to do so?
Thank you.
From India, Hyderabad
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The agreement/bond is pretty much one-sided (or at least the part you have posted is). The problem may not even be if you do not like the company. The problem you need to think about is what happens if the profile they put you in is not to your liking, or they suddenly move you to something not of interest, or you have a boss with whom you cannot work. In that case, you will have to pay them the cost of training. The clause for loss incurred is vague, and anything can be added for that amount. In your position, I would worry about that.
On the other hand, the company needs to safeguard its interests, especially where someone like you gets a better offer from another company after 6 months and quits. So, if you want to get into larger companies like these, which will be your launchpad to a better career two years down the line, you do not have a choice but to hunker down and work under their terms. Suffer if you must, for two years, but your reward for the hard work will be greater.
From India, Mumbai
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On the other hand, the company needs to safeguard its interests, especially where someone like you gets a better offer from another company after 6 months and quits. So, if you want to get into larger companies like these, which will be your launchpad to a better career two years down the line, you do not have a choice but to hunker down and work under their terms. Suffer if you must, for two years, but your reward for the hard work will be greater.
From India, Mumbai
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Bond of Employment.doc
Bond in employment.pdf