Retired Government Servant/advocate
Advisory & Execution Of Labour Law Compliance
Allan Fernandes
Vp - Quikchex Hr And Payroll Software And
+2 Others

Hi all,
I'm working for IT firm. At the time of joining my organization has asked me to sign a bond of 2 years and penalty for beaching the bond amounts RS 1,00,000(cost incurred in training)- in the bond they have mentioned to provide class room training's on-job training, international training and and there is nothing mentioned as the penalty amount would be reduced as the service goes in bond.

So after 1 year tenure i resigned from the company. The company didn't provided any type of classroom training to me as mentioned in the bond.

In this type of scenario,
Will I'll be liable to pay 1,00,000 as compensation to the organization.
Can I say them to provide exact amount incurred on me as part of training and do they have right to refuse to provide it.
Do the organization have right or power to refuse to give me experience letter in case i didn't pay 1,00,000. And incase they refuse what I rights do I have?
And If challenge them i court then refusing to pay 1lakh rupees then how long will the case run as it will affect my joining in the next organisation and will hamper my career.
21st April 2016 From India, Mumbai
Any employee is typically governed by terms & condition of his appointment letter or any subsequent contracts made thereafter with the employer like training bonds etc. In IT companies such contracts are common since a lot of resources are invested in employees.
In your case it seems:
1) You have breached the contract & your legal side is weak. You are bound to make good their losses
2) You cannot ask prorated amount from them since penalty is applicable from day one of breach as a whole. You can negotiate though.
3) The company will harass you anyway for the experience letter & you dont have any right except to approach courts where again your legal side is weak.
4) Breach of contract cases are civil in nature & can run for many days altogether. So think twice before going ahead on litigation.
21st April 2016 From India, Mumbai
""Can I say them to provide exact amount incurred on me as part of training and do they have right to refuse to provide it.""
Cost of training can be quantified and if they not provided classroom training,what training did they give you?
What international training was done?
You can fight it out with them on these issues,but is it worthwhile?
No one can predict how many days or months case will go on in courts.
Consult a local lawyer,show him all the papers and then decide.
You have breached the contract,negotiate with company and pay minimal amount possible,quantified for the value of training actually given to you and carry on with your career.
21st April 2016 From India, Pune
Bonded labour in India has been outlawed. However, employees are liable to reimburse training expenses. The employer must submit bills etc. to quantify the loss. This means your training should have actually caused them a loss of Rs. 1 lac when you resigned, otherwise you're not liable to pay.
The legal route of getting an experience letter is not advisable as this is time consuming and may prove expensive.
Check out this article to know more
Employment Bonds - Do they really work? | Bond Contracts
22nd April 2016 From India, Mumbai
The employment bond is not valid. They have derived commercial value out of your efforts. There are lots of case studies that have been posted in cite hr . Please search for it and you will get insight. You don't have to pay a penny.
22nd April 2016 From Indonesia, Jakarta
The employer cannot unilaterally enforce the bond; this could be only through the due process of law. If the appointment letter had provided for arbitration, there is an easy route for employer. Other wise they will have to approach the Civil Court for decree.
They cannot deny the experience letter if you take a firm stand.
23rd April 2016 From India, Kochi
Don't pay anything. Get some employment proof (letter) from company which can show you are employed there. Your offer letter + this doc + resignation acceptance should be sufficient to prove to your next employer that you were employed for what approx duration and the reason for your resignation.
25th April 2016 From India, Bangalore
Hello Guys,
thank you for your reply's.
Just wanted to add 1 more point which was raised by the HR on training was that:
He was continuously focusing on the point that they have provided "on the job training"- the senior person that they sent with me on client-site was giving me on the job training and his per day salary is also included as a part training bond amount.
2nd May 2016 From India, Mumbai
You have to respond back stating that the senior person did not train you but was only delegating work to you and such delegation cannot be termed as training. And upon his delegation of work, you have slogged hard, resulting in commercial gains for the company. Hence, delegation cannot be termed as training. And if the senior person has claimed to have trained you, then such claim is false and you can ask the HR guy to take action against the senior person for having falsely claimed that he has trained you. Tell him, such claims will fail the test of law and bring bad name to the company if you decide to take it up legally. There is also an interesting case, wherein a known person decided to go to the Human Rights body for depriving him the right to leave and work anywhere he desires in the guise of the bond by a small IT company in Bangalore. The state Hunan Rights commission summoned the CEO and the HR person. The company panicked and resolved the whole issue within a week and released the employee and reported to the Human Rights commission that the problem is resolved and it was only a misunderstanding and the employee has been relieved. This was a new strategy which this known person used, since his sister is a lawyer and she believed it was a human right violation to enforce bondage in the guise of a bond. You may want to explore this avenue. This gives speedy results.
3rd May 2016 From Indonesia, Jakarta
Thank you for clearing the definition of training.
Recently my organization has ask me to leave the job with half day prior notice and they wanted to settle things offline. Would like to know how this will affect if a leave without closing the agreement(without having any formal commitment from the organization on bond amount).
4th May 2016 From India, Mumbai
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