Hr Manager
Senior Hr Executive
Anuraag Maini
Hr Professional
Manager - Human Resource
Hr Executive
Software Engineer

Hi, My friend has signed a 2 year bond with Satyam Computers. Now due her family problems she is not able to report in hyderabad which is her reporting center. She lives in pune. She has joined Satyam in june 2006. She has not been alloted a project yet. Now she want her reporting center to be changed to pune, but Satyam people are not allowing her to do so. She is thinking of resigning. Just wanted to know whether she will have to pay the money for bond breaking.
From United States, Milton
Hi, It all depends on company to company, if the company is strong enough about legal matters, then your friend has to pay the amount (for breaking the bond) which was mentioned in bond, for which she has agreed. Probably if your friend has better relationship with supervisor or HR, then can discuss the things, explain the reasons and can avoid it. Thanks Pallavi.
From India, Mumbai
Bond or Bondage Hi Friends I would like to high light certain legal problems that my HR friends are having or are subjected to such problems The problem I wish to discuss with all my friends is about Signing of Bond or rather to say completion to signing a bond to get a job. India is currently faced by 17% attrition per annum across all vertical and all industry. If we compare this ratio with other nations the attrition rate is very low, the highest is Australia. Bond was a way devised by some wise HR person sitting in USA. As per the law and regulation of USA this kind of arrangement between the employee and employer was acceptable. But some wise guy in HR in India had splendid idea of aping this idea into the Indian market without understanding the Legal, Social, and cultural back ground. 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. 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. 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. 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. 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. Thank you for your time patience and cooperation Much Obliged Octavious
From India, Mumbai
Thank you very much. I have been going thru this site since morning and it is not clear. But with all the rules u have mentioned helps to believe that there wont be any problem. Thank you very much
From United States, Milton
Dear Friends, This is to share another perspective ............. firstly it is misleading to call it " Bond " it is as a matter of fact an agreement between the candidate ( not an employee ) and the company. The agreement is towards the an arrangement for the company to train and impart the required skill which is of world class and in line with the various quality certification which is recognized by the industry and then inturn expect the employee to help the company to earn revenue based on the knowledge which is imparted to the employee who has been trained from a know-nothing to a know-all for that role. The cost is tremendous and the effort put in from the company's point of view is also huge. Also by the means of this skill available interms of the training and the customer would be promised on the availability and the loss due to this all put together would be the agreement. Each company has its own way of wording and the demurrages payable inlieu of the same ..... In this case i belive that the company has the right to take up case legally against such an associate who would be violating the agreement. Rgds, SKP.

Hi, No bond tying a person to a comapny can be enforced in the court of law. The company may threaten but cannot execute it. Hope she has'nt signed any bond which is related to her attending training overseas and related expenses to be rimbursed by her to company should she leave in a certain time period. Regards Anuraag

Dear Friend, Read every one's opinion and i agree with all of you. I would definately like to know as in has the company kept few months salary cheques with it? Or it was just a signed bond? If Satyam is holding the payments even for a month your friend has a strong point of proving this a an illegal act in the court, as in no employer can hold a salary of any employee for the period served. Secondly even if the employee has signed a bond in any non avoidable case the employee can show consent of discontinuation of his/her services. Not even this she is asking for a transfer to the same company's branch in another location. Since she is not granted this liberty she is quiting so in any case i feel your friend has many strong reasons to defy this bond/agreement, Reagrds, Shilpi delhi
From India, New Delhi
Hi everybody It gives me a great feeling of being a part of this professional body. Kudos to all for your expert opinion which can really trigger new vistas of thinking for a person under indecisive conditions and with the inputs, one will surely be able to arrive at a strong decision. Keep doing the good work and help HRites. Regards to all. Srinivaskvmk
From India, Hyderabad
Dear Its all depends upon teh Bound what it says. If she had signed it, then have to obay the points mentioned in the agreement. But all depends how she can conveince the Management to excuse all cp
From India, Madras
Hi If there is a specific clause about payment of damages in case the trainee leaves during the stipulated period , the bond is executionable to that extend. MSV

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