How Can I Escape From Service Agreement Without Paying Bond Amount? - CiteHR
Rdsyadav
Educator, Management Consultant & Trainer
Riteshmaity
Labour Law Advocate
Salu_kc
System Engineer
+1 Other

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Hi sir,

I am a b.tech ECE graduate. I have signed a service agreement bond in IT company for 2 years on RS 200 stamp paper. I also signed non-competent, non-disclosure and solicitation agreement on another Rs 200 stamp paper.

In service agreement, they stated they will give 6 month training and after completion I will be selected as employee. If I break the bond I have to give 1 lakh. But I merely got 1 month training and it's more over self study, no specialised training. After 1 month I shifted to work. I am discomfort able to continue here. It too pressure as they know we have no option as we signed agreement. It's 24×7 hour working. I am unable to continue due to medical issues and more over we don't get correct any specialised training. In agreement they stated If I resign or abscond within the bond period I have to give liquidated damages of 1.20 lakh. I and my family is not in a condition to pay amount as my salary is pitty 8000 only. I am in a screwed situation . And I am totally depressed and tensed. How I resign from this without paying bond amount? What will be the consequences if I quit? And legal procedures... if they got to court how they enforce it? I got one month training only.

Another concern it attested by notary and I have my friend as surety. Is that my surety will face any legal issues. .. In agreement there is a clause of arbitration.

Please give me possible legal advice. I want to drop this peculiar IT field.

Waiting for your valuable suggestions.
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Dear Salu,
You have narrated horrible condition and sufferings real like a bonded labour . Please note that employer at most can file a suit to recover money on specialized training, which you say is not at all there and moreover you have to work for 24 hours which is not permissible under law. Law condemns all these acts of malice and mischiefs provided you can defend properly. I suggest, you build up your case , write about so called specialized training as was committed initially by company which is even not yet heard about and also the work without any break or holidays. Write 2/3 mails in a coming 2 months politely so that it can serve the purpose and you can use as evidences if required in defending your liability . Also, keep attendance in and out time .Take it for granted, whatever you have narrated if it is true , its worth to fight to win in case company decides to sue you.Normally, in conditions where they do mischief, giving their employees inhumane treatment and follow illegal practices, company does not fight as they assess with internal fear to loose case on demerits. These days ,large number of cases have been coming in favour of employees like you who are made to work as bonded labour.
Regds,
RDS Yadav
Thank you for your quick response.
I mean 24×7 means, it continously working company. I need to work 10 hours only.There will be shifts but the shift are irregular not in proper way. I have one day off and not any other benifits and we have to work for public holidas too.Let me know if there is any cases in court regarding employment agreement breaking and any recent court judgment.
Thanks
Please let me know any recent court judgment regarding employment agreement. I am not in a condition to pay 1 lakh compensation as I have only 8k salary. Waiting for your valuable suggestions.
As already advised, employer can recover only the amount actually spent on you for providing any special training through litigation which is time consuming as well as expensive.
Generally speaking, bonds are illegal and cannot be used to withhold an employee. However, in your case as well as the surety, first the contents of the bond has to be looked into.
If possible get your resignation drafted by a professional considering the aspect of the bond.
If you get a legal notice from the company, don't hesitate to consult a lawyer and give a proper reply.
Thank you for your response.
In agreement they stated they will give 6 month specialised training. So I have to serve the company for two years. If I break the bond, I have to serve the company for 2 years. Thus is the clause of the agreement.
But point is that I not getting any formal training and 1 month just training googling. Then how they make enforcebe before the court. If I have to pay bond amount. They will initiate legal and there is a clause of arbitration.
Please give me possible suggestions.
Obviously the company can initiate a legal proceeding against you to recover the amount, but in court they have to prove the actual amount of money spent on you for providing special training.
Initiating a legal proceeding is not a big deal but winning is. Before initiating a legal proceeding, the company is supposed to give you a notice. Please carefully handle and reply to the notice, taking help of professionals/ lawyers, if required.
Thank you for your response.
Can I get any details of court judgment regarding employment agreement breaken by a freher in a small sized IT company. I googled lot but I didn't get any details. Please provide if you have now any details of the recent judgment.
How they can go to court for some hypothetical training which they are not given. I can say that it is new model of bondage. We are surrendering our life for a particular company.
Waiting for your valuable suggestions.
Just like the company can go to court for providing "hypothetical training", you will also be able to defend yourself with "new model of bondage". But in order to do so, you have to go and appear before the court and defend yourself in hearings, most probably with assistance of some lawyers.
Please show all your agreements along with appointment letters, resignation letter, demand notices etc. of the company and get a proper advice on your next course of action.
There is no point in showing any case laws to the management at this stage. You can keep that weapon (case laws) for better use in the court, if required at all.
Thank you for your response.
Can I get any details of court judgment regarding employment agreement breaken by a freher in a small sized IT company.
Please provide me any details of the court judgment if you have any.

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