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Thread Started by #Anuragmishra29

Hi Members
I would like to know-
1. What is the legality of the employment bonds which the employees sign with the employers against some training programs?
2. Getting any bond from employee is legally enforceable or not?
I have gone through all the post related to service bond but was not able to find single satisfactory answer as it doesn’t refer to any act, law or rule.
So I request you to provide legal view and not personal understanding about this matter.
21st September 2007 From India, Delhi
Hi Anurag,

In India Bond is illegal as follws

As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes

Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that’s amounting to the violation of the rights mentioned under Article 19.

[b]As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.

Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom its is enforced and if performed would violate principles of natural justices.

[/b]As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.

Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.

The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.

The court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.


[b]Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.[/b]

Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.

Hope it will help you.

Sachhin
21st September 2007 From India, Pune
Hi Peer sabh
Nice to have your comment on this.But I have gone through all the post in site,post seems to be contradicting each other.
I would really appreciate if you could provide us with article or memo or some kind of authenticated reports circular or data.
Please provide us with details
Have a great day
Anurag
21st September 2007 From India, Delhi
Hi Sachin
Thanks a lot for your contribution.
So the extract is bond is applicable if company has provided some kind of training.
Lets take a senario
an employee signs a bond with a company for training and company puts a conditon that it would give 1 lac as training incentive after completion of training and the person would have to work for 4 yers with company.But company dosent give training incentive after the completion and employee leaves the job.
Now the question, is contract valid.
21st September 2007 From India, Delhi
Legality of the BOND purely depends upon the Clauses added in the Bond....
It varies from Company to Company.....
Some Company take it to Court,,,
Some Companies leave it for the Betterment of Employees,,,,
21st September 2007 From India, Coimbatore
Hi,
No employment bond for an employee in India stands nowhere. Legally it is not acceptable. The bond concept employers are using only for sek of psychological tool on an employee.
If employer says to go in the court in case of breaking of a bond from any employee it's waste of time of legal/HR person.
Thanks,
Amit
27th September 2007 From India, Mumbai
Hi Anurag, Thank you vey much for your valuable info w.r.t bonded labour system. But can you pl. enlighten me as to what do you mean when u say the bond is "one sided REgards
27th September 2007 From India, Bangalore
Good explanation, but would any one tell me what can be done if you leave in between contract and there is no penalty imposed by the employer but experience letter and relieving letter not issued. Is there any legal solution which will give immediate result.
27th September 2007 From India, New Delhi
Hi Guys,

My name is Rohit , i worked with a noida based company about an year back and signed a bond with the company for a year, but i left the company after 9 months because the owner/management of the company was very rude and used to pressurise employes for no valid reasons , and because of that most of the employees left within 3-4 months.

Note: I mean to say the attrition rate of the company is very high.

Now my problem is that its almost a year since i have left my job there, but i dont know what happened to the owner of company he has registered a case against me and his layers are harrassing/pressurising my family and ultimately this guy(owner) has sent a summon/legal document to my father mentioning either to pay 1 lac ruppee or appear in court with in a day.

Right now i have 3 options left with me,would request you to give your feedback ASAP on that:

1. Should i pay 1 lac ps to my employer?

2. Should i fight the case against him?

3. Should i go for out of the court settlement?
13th December 2007 From India, Gurgaon
In Singapore, we do have many cases whereby the company bonded the candidates. This is usually cases whereby the employer sent their employees on courses fully or partially paid by the empolyer. There are also cases whereby a employees will be bonded upon employment. However each parties are allow to break the bond if they can pay back the other party in terms of monetary.
1st September 2008 From Singapore, Singapore
Dear friends,
Service bonds have been held by courts in many cases as contrary to the provisions of Section 27 of Indian Contract Act and hence cannot be enforced. A detailed article written by an advocate of Supreme Court on this issue is attached for your information.
Regards,
2nd September 2008 From India, Malappuram

Attached Files
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File Type: pdf Negative Covenant in Contract of Employment.pdf (108.5 KB, 1447 views)

Hi I am Rizwan, Can anybody tell me that any kind of employment Bond is valid in Pakistan? There arenumber of companies using this as a weapon to keep them attached with the company.
2nd September 2008 From Pakistan, Karachi
Dear friends, I am attaching copy of another article written by an advocate of New Delhi on the issue for your ready reference. Regards,
3rd September 2008 From India, Malappuram

Attached Files
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File Type: pdf Employment terms.pdf (106.3 KB, 1408 views)

Hi
Resignation during bond period.?
I have signed a bond for 2Yrs and amount of 1.5Lacs. I am having family problem and requested my reporting manager to give me transfer or relieving letter. But he says that neither i will be transfered nor company will give me a relieving letter as i am under probation period. I also asked him that should i mail the HR stating my Problem and request, he denied to do so. I am going under mental stress and is not able to work efficiently. My question is company has not provided me any training nor did any expenditure. Can i leave company and whether i should give the resignation or there is some other way to leave the company without paying the bond amount. Will they create any trouble for my friend who is a guarantor of this bond. Kindly please help me out. Looking forward for your positive response. Thanking u in advance….
5th September 2008 From India, Patna
Hi Sachhin, You have cleared all my doubts about employement bond. Keep it up. Regards, Rakesh
5th October 2008 From India, New Delhi
I am employed with a reputed mid-sized IT services company in Pune. Mine was campus recruitment and at the time of joining, my father was made to sign a bond stating that I shall continue to work with them for 2 years or pay Rs 2 Lacs if I quit before that.
I signed the joining letters in good faith.
The promised training was only a one month session and after that for the past one year I am yet to be assigned to a real project. No wonder I did not get an appraisal because I never worked on a billable project. That apart I have by large enjoyed my association with my colleagues and seniors.
Of late the company HR has been asking all employees to sign a “No Hire” clause which states employees cannot join any client, client competitor and so on for a period of one year from the date I leave the company. I am not convinced by this restrictive clause and feel this will stifle my already stagnating career. I have avoided signing it but now the HR has been pressurizing me and at time making veiled threats – we will make your exit procedure difficult, etc. I am totally stressed and discomforted by this and finally had no choice but to resign citing the mentioned reason. They are yet to reply or accept my letter.

Now the threats have increased and I am being warned of legal notice, withholding my salary, experience letter, relieving letter, etc. I feel victimized because of my refusal to sign addendums to the hire letter. This unprofessional behavior by a certain section of the company surprises me as I have always put my best for the company and have been appreciated for my work earlier.
I continue to go on doing my work as usual but feel the pressure and an environment of threat.
Was I right in refusing to sign a one-sided clause and resigning on those grounds?
Please suggest what would be my options in such condition.

Thanks,
Roshan
14th October 2008 From Japan
Hi
I have joined a company by giving 2 years bond
they gave me training for 3 months from their own training dept.
Now am short of 5 months to complete my bond period
But they cut my salary by 15%
does the bond stays legal?
Can I claim for relieving letter and PF amount (including employers contributuion) ?
24th April 2009 From India, Kochi
hi guys i am in really tense situation now a days .the problem is i have sign the bond with one of airline that will send me abroad on traning on paticular aircraft and they have made a bond that after training i have to serve company for 7 years and the bond amount is 20 lack which they showed that it is training cost and in really it is not more than 5 lack .its more than 1 month that i signed that bond and they havent send me abroad for training and luckely i got offer from other airline and therefore i want to leave this company and join other.but its written on bond that i cant leave/resign before 7 years from date of appointment otherwise it will be case of breach and they have right to take 20 lack from me but i havent took any abroad training from them till the date . and the total bond is one sided mean every thing is in there favour if they terminate or i resign than also they with charge 20 lack from me. pls guys any one of you can tell that how can i leave the company because i dont want to indulge in any legal actions which can ruin my career. thanks in advance.pls do reply
18th June 2009 From India, Delhi
hi guys i am in really tense situation now a days .the problem is i have sign the bond with one medical company .it was a stamp paper where i signed...it was two years bond .i left the compay..now they sent warning letter.and they are saying to pay 1.35 lakhs.otherwise they will move to court,..can anybody tell me what should i do for this problem.
Roshith
29th July 2009 From India, Delhi
DEAR ALL
I WANT 2 HAVE A COPY OF SERVICE / EMPLOYEMENT BOND TO ENGAGE THE EMPLOYEES AND PLEASE LET ME KNOW WHAT LEGAL FORMALITIES HAVE 2 BE OBSERVRD FOR A VALID AND ENFORCEABLE BOND AGREEMENT. PLEASE HELP. MY EMAIL ID IS . thanks in advance for the replier.
30th July 2009 From India, Amritsar
copy of employment bond recquired to keep intact the employees and other legal formalities to be observed to ensure that bond is valid and enforceable. please help as this is very urgent to me . email id :
30th July 2009 From India, Amritsar
Hello Sachin,
This information was really awesome on bonded labour act even i need some more help from your end.act you help to get the government document or any article which is consider as valid proof.
you can send that information to my mail ID (sushilkumar.734611@gmail.com) sushilkumar.734611atgmaildotcom so please help me out. on the same that would me great pleasure to me.
Regards
Sushil Kumar.
12th November 2009 From India, Bangalore
I have signed an employment bond with an IT company for one year for Rs one lakh. The company had arranged a group training. The company got the bond signed before imparting on the job training. I have served the company for five months; one month before the training and four months after the training. Now. I want to leave this company. Pl advise whether this bond is legal and what action the company can take against me? What are the consequences of the bond.
Thanx in advance.
shail
14th May 2010 From India, New Delhi
This appears still very doubt ful and not free from confusion..
1. What will happen if an agreement says that employee can not resign, leave or otherwise, the company for a perios of 2 year from the date of agreement and in case if do so will be abreach of agreement and employee will have to pay 2.50 lacs as compensation and bond amount. Further there will be a penalty for breach of contract of 10.00 lacs.
Is such a clause Valid..?????
pl revert back
Thnxx
23rd May 2010 From India, Bhopal
@Sachin

Hi

I joined a company in hyd and i work from mumbai.

My boss interviewd me for a marketing position based on my resume and he did not mention anything about what will be my current role in the department, assuming it will be the same. In short im cheated as my career intrest and goal are the ones which i had experience from and they did not say that it will be all about going on field and talking to people and do direct marketing, in short its cheating right?

Now the work is all different then what he interviewd me for, they took my tenth certificate, which i dnt care

but i want to leave this company., i dnt seek any reliving letter or anything as i just joined n i can leave but the problem is that i signed a service agreement in which there is no mention of company incurring any kind of cost for me or any training cost. but mentions rs. 1 lakh as liquidated charges, it has normal clauses and ARBITRATION CLAUSE... it states that

"all disputes arising under, in connection with and in relation to this agreement shall be resloved by way of arbitration under arbitration and conciliation act 1996, through a sole arbirator appointed by the company. the award passed by the arbitrator shall be binding on the parties therto.

the venue of arbirtration will be hyd and the courts of hyd shall have the exclusive jurisdiction"

MY QUESTION IS... ARBITRATOR CAN BE BIASED AND I WILL NOT GET TO PUT MY CASE FORWARD...

WHAT CAN I DO? IS THIS ALLOWED TO DO IN SERVICE BOND AGREEMENT? PLZ KINDLY HELP
30th September 2010 From India, Mumbai
Dear Having signed a service agreement do you have a copy. With Regards E-mail : Mobile : 9025792684
1st October 2010 From India, Bangalore
Dear
In the posts we find that the employee does not have a copy of the Bond.This is an unfair labor practice .Please insist for a copy of it .This is your right and do not regret later.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
Mobile : 9025792684.
.
5th October 2010 From India, Bangalore
Thank you very very much, i was in big dilemma what to do? Now your advice will surely help me out. once again thank you very much for your precious advice.
11th October 2010 From India, New Delhi
Hi!
My niece joined an Indian mid level IT company of repute, which made her sign a indemnity bond of Rs 1.0 lakhs requiring her to complete 3 months training and serving 2 years in the company from date of initial joining.
She has served for 10 months but finds the working conditions unsecure and absence of systems followed by other IT solution which ensure safe passage for women employees. This is putting her under great mental stress.She wants to resign though she has no job on hand.In such case of resignation, can the IT company enforce the bond.
The bond does not have any obligation on the part of the company towards the employees.
Kindly enlighten.
Regards
16th October 2010 From India, Dehra Dun
Hello everyone I'm a fresher and Joined a Japanese co. as IT consultant at the time of joining I was singed Bond of 18m but now I'm suffering from some health problems and also not satisfied with job so i want to quite that job.so How can I exit(Quite) from that bond plz help me.and leave that company????????? what will happen if i abscond from that co.? Please guide me plz plz plz...........
Waiting for your replies
25th July 2012 From India, Pune
hi,
when i left the company, i paid 1.6 lakh approx. to the company as bond value. can i get it back? in a sense they owe me 1.6 lakh because when i will go to the court, bond agreement will not be legal, hence they don\'t have anything to support their stand. it means they have to return my money. can it be possible?
31st August 2012 From India, Ranchi
Everyone here has been saying it is not valid, however today Judge has convicted me in one such case.. I don’t even know what should I do next.. I don’t think my lawyer is any good.
18th September 2012 From United States, Denver
hello sir, i joined in it company , here i have signed 2yr bond. i gave all my certificates to them . i resigned from my position . now tell me how to get my certfiactes
23rd September 2012 From India, Chennai
Dear all,
As per my experience which has pertained from my friend bond with the his previous company, it doesnt seems to be valid with regard to our statute law. So its no more legalally valid.............
23rd September 2012 From India, Madras
Dear All,
The Legality of the Employeement Bond is purely based on its clauses added in the agreement. The clauses should be relevant to the employment and it should not against the contract and agreement Laws by the Indian government.
Important Points to takecare when you sign a bond with the employee are many. Some of them are as follows.
a. The contract should contain clauses about the arbitrary, breach of confidentiality, tenure of the employee and the damage which shall be paid by the employee.
b. Affidavit of acknowledgment should be signed by the employee along with the agreement.
c. The Witness signature is very important. Two (or) more witness is very good. Atleast 1 of the witness must be a blood relative and before the witness signature, any one of the Govt ID of the witness has to be filed.
d. Numbering of the clauses is very important. If there is any mistakes and typographical errors in the numbering of the clauses, then the bond will not be valued.
e
23rd September 2012 From India, Madras
I am working in a MNC India and had offered from client(Outside india) and i would like to know what kind of legal issue i may have from my company in india
11th December 2012 From India, Chennai
Hi Rohit, dont pay any monday,,, consult any advocate.. file a case against throug labour law. as he is torturing you... deffinately you will win..
5th December 2015 From India, undefined
Hello Sir,
Could you please tell me what are the various situations where the employer can ask for a bond from the employee?
For example, we can ask time frame agreement from the joinee, like binding with the company for 2 years or so....
similarly, what are the various situations where an employer ask for a bond
Thank you,
Harikrishna
25th February 2016 From India, Hyderabad
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