Suggest you please go to research toolbar at the top of the page to search for your query.
There has been numerous discussions on this topic in Citehr.
I would still like to clarify your pints in short by answering your two questions:
1. If an employee has signed a 1 year bond with 40k surety amount if he / she leaves the company, the company has full right to recover the said amount from his / her salary or from the employee.
2. If the same clause is mentioned in the appointment letter and also in the stamp paper, then both the letters are valid in legal point of view. IF an employee does not pay the surety / liquidity damage amount then the company has full rights to approach the court and send notice to recover the amount from the employee.
I have said in my earlier post that the terms and conditions and the surety / liquidity damage amount mentioned in the appointment letter or in the bond paper are legal and Company has rights to take action against that employee to recover the dues.
i am not agree with the above e-mails on the issue. You cannot bond an employee. As bonded labour is prohibited.
you should have a discussion with some a legal luminary and ask him to send a legal notice to the company to get rid of such bond conditions. Moreover such bonds are only one sided and dont have locusstandy in the Law.
L M Sharma
Most of the employer get the surety/bond signed by the employee for the amount to be spend on the employee for training, relocation bonus, foreign trip, hotel stay etc. such amount are recoverable from the employee by way of surety. The law does not permit the employee to get the benefit and leave the employer in midway.
The employee being adult has signed the surety/bond after understanding the merits/demerits of the terms and conditions mentioned therein. So the employer cannot be blamed for, the law is prohibiting bonded labor which has different meaning and clauses.
If I am wrong, seniors please advise.