hi i hav signed a bond with a company for 1 year... not a on stamp paper. i have signed in a letter head of that company ..due to the hecticic work environment and my health issue i left for 5 months only..they said they will take legal actions on me...please help me by giving suggestion to get out of this
From India, Bangalore
Consultant In Legal Matters
Hr & Admin Manager
Network Engineer
+1 Other

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


Were you given an appointment letter. When did your probation period end. Did you get a confirmation letter after completion of your probation period??? If your appointment was not confirmed in writing, the company cannot take any legal action against your. Stop worrying.
From India, Mumbai

Bond should have been executed on stamp paper. Under sections 73 and 74 of the Contract Act, reasonable amount of damages can be recovered proportionate to the expenditure incurred upon the employee in imparting training, period for which you have already rendered service has to be taken into consideration etc, irrespective of the liquidated amount stated in the bond. Such is the prevalent law today.

However, a new dimension of diminishing of liability of employee under bond is visualised which may be tested in judicial fora. Thus in respect of employees governed by State Shops and Establishment Act, and those governed by Payment of Wages Act, it is generally laid down under the Acts that wages shall be paid without deduction except when authorized by law. Thus even if employer and employee agree through agreement, then even employer cannot recover any amount from the wages of the employee, except in the manner authorized by law. It follows that the above bond agreement between employer and employee is superseded though executed under contract Act. The provisions of Payment of Wages Act and Shops and Establishment Act supersede contract Act provisions to that extent. If debt from employee cannot be recovered from wages of employee as it is bad, so it cannot be recovered from surety. This is new dimension of diminishing of liability of employee in the above line of approach.

Moreover, since you worked as a network Engineer as a technical person, you may be considered to be covered as workman under Industrial Disputes Act, 1947 and thus cannot be subjected to unreasonable terms of conditions.



From India, New Delhi

The Bond in question was created by employer in lieu of what and is it stated in the Bond that in lieu of ......................employee has agreed to work

This is the question that needs to be answered by the querist and the Bond needs to be examined verbatim alongwith job advt.,job application,employment application,interview call letter, selection letter,offer letter,appointment letter, Bond, copy of resignation etc..............................

If there was no such consideration offered to employee then the Bond may not be even worth the piece of paper on which it is written.

The liquidated damages stated in Bond need not to be paid on demand and may have to be proved.........

As per various publications/threads the Bond/service Agreements have become a nuisance and even unscrupulous employers that do not honor labor laws ,rights of employees ,do not pay wages on time, do not give Over Time, indulge in malpractices, unfair practices and are thus offenders………………..are throwing Bond to sign…………………
The employees that do not unite, form unions,become members of employee’s unions, affiliate trade unions like CITU,AITUC,INTUC,BMS etc…………….are exploited………………………

Are you aware that ‘Works Committee’ as in Industrial Dispute Act: is an authority and many states have made it mandatory to form Grievance Redressal Committee in each company.
The united employee’s can negotiate service conditions and union leaders can help to fight such exploitation………………………

From India, Chandigarh

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHR

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server