Business Consultant - Hr
Sachin S Kadlag
Executive - Administration
Customer Care Manager (telecom)
Student And Working As It Consultant.
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 thatâ€™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.
21st September 2007 From India, Pune
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
21st September 2007 From India, Delhi
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
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.
27th September 2007 From India, Mumbai
27th September 2007 From India, New Delhi
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
1st September 2008 From Singapore, Singapore
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.
2nd September 2008 From India, Malappuram
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
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.
14th October 2008 From Japan
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
18th June 2009 From India, Delhi
29th July 2009 From India, Delhi
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
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 (email@example.com) sushilkumar.734611atgmaildotcom so please help me out. on the same that would me great pleasure to me.
12th November 2009 From India, Bangalore
Thanx in advance.
14th May 2010 From India, New Delhi
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
23rd May 2010 From India, Bhopal
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
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.
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
Mobile : 9025792684.
5th October 2010 From India, Bangalore
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.
16th October 2010 From India, Dehra Dun
Waiting for your replies
25th July 2012 From India, Pune
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
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.
23rd September 2012 From India, Madras
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
25th February 2016 From India, Hyderabad