I signed a Service agreement/Bond with an IT company last year. The bond entitled me to work for the company for 2 years failing to which, I shall have to pay them a sum of 1 lakh rupees as training expenses.

However, while my company trained me in a particular language, they did not put me on project for a considerable period of time. Later, they provided me a short 20 day training in some other technology(both of which I knew beforehand) and put me on project for a couple of months. They later shifted me to the original position and then dragged me back from it within a period of one month. Owing to all this, I was greatly disappointed and decided to leave the company. While initially they agreed to negotiate the amount to be paid, they retracted from it and asked me to pay the entire amount. I resigned that day and have been absconding since(almost 7 days now). Now they have emailed me directing me to pay the entire amount within 15 days or else they will proceed with civil proceedings against me.

The case to point here is -

1. I have been continuously asking them for a copy of the bond that I signed. Each time they have flatly refused the same citing company policies.

2. The employment bond/contract doesnt have any mention in my offer letter or the appointment letter.

3. This email of absconding and breach of contract is within 5 days of my last attendance in office. The office did call me a couple of times within 3 days of my absconding but I didnt pick up the phone.

4. While I was formally not appointed any work in this period when I resigned.

What do you suggest might happen in such a scenario. Is this enforcement of bond legal in a civil court in India?

From India, Delhi
Industrial Relations And Labour Laws
Sr Executive
+1 Other

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Bond to recover training costs incurred by the employer is maintainable. The onus to establish the cost of training lies with the company which they can easily ddo whereas it is your responsibility to establish that you did not receive any training or whatever the company said as invested was invested not exclusively for you but jointly for many others like you. Anyway, absconding (as you yourself admit that you have abandoned without informing the company) is not fair.

Now if you take a defence, you can say that at the time of joining there was no mention about the bond and nothing was mentioned in the appointment order. You can also say that it could be true that you did sign a bond with the hope that you would get proper training which would be anyway useful for your future career but the employer had refused to give a copy of the same. By not giving the copy of an agreement (the refusal is there in the mail) the agreement has failed to operate and invalid. Therefore, the company cannot exercise agreement/ bond on you. Like this you may send a letter to the company and wait for the reply. Your argument should be on the company's act of not giving a copy of the agreement and not giving you any training or spending the bond amount for your training.

A civil case will take time to find an end result. In the meanwhile, if you can file a case against the company for harassing you by showing the bond etc before the Labour Officer, it would help you. You can run it parallelly.



From India, Kannur
thanks a lot sir. I really appreciate your advice for the same. Regarding the training costs, it was a 3 month training period administered by a single mentor for about 8-10 employees. However, before absconding, I did put in my papers(formally resigned) and then absconded when they retracted from negotiating the amount.
Thanks a lot.

From India, Delhi

if they had marked some xyz amount, they are entitled to get back the amount, all contract are like that company say they will be giving you training for this much rupee and you have to payback the money in leiu of bond or cost of training, so you are very much supposed to pay the amount, dont drag it to civil court you may lose and also company will be having a dedicated person(mostly from Admin) to go in all court proceeding and you will be losing your time and money both.
From India, Delhi

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