Hi! All Preceptors there.

My Senior ask me to draft a Bond between the employee and the employer.

One of our staff resigned last week his salary is 24000 and he got another job and they're paying 35000 now our company wish to retain him at the same salary but the management want to continue his employment with the bond.

1. we want bond him for 2 years
2. coming appraisal Month April'2023 (No any appraisal )

Can anyone please help me to draft a bond? So that I could present it to my senior.

Thanks & Regards
Vishal Bhardwaj

From India, Gangtok
Dinesh Divekar
Business Mentor, Consultant And Trainer
Sr.manager - Hr&admin



It is good you are retaining a good performer by offering a good hike equivalent to the offer he got. But you should take into consideration one thing that this information will spread and tomorrow many other good performers will come with resignation quoting better offer reasons. So will you be able to retain all by paying a good hike. Practically speaking it won't be possible. Isn't it ?

The bond which you are referring is Indemnity Bond. If the employee had agreed to sign Indemnity Bond then you may get it from him. Please refer the following draft. You may edit as per your requirement.


I, _______, S/o.______ staying permanently at __________ is working with M/s. ________a Company incorporated under the provisions of the Companies Act, 1956 and having its registered office at_________. since _______ (DOJ) as a _______ (Designation).

And whereas, I know that during this period of two years of service, from this ______ to_________, I will be under an obligation of offering un-interrupted service to M/s _____________I will neither leave the company during this period nor will go on leave, longer than entitlement.

And whereas I do also undertake not to share confidentiality and knowledge acquired during the above period to any body outside the company, neither on non-competition basis nor otherwise.

However, if I fail to complete this period of two years service with the company, I will be liable to reimburse to the company, lump sum compensation of Rs.________- (Rupees ______Only) before I leave the company.

And whereas I do hereby solemnly affirm, ratify and declare that above indemnity is without any undue influence, pressure, and coercion of whatsoever nature and will be binding on me.

I accept,




From India, Madras
Dinesh Divekar

Dear Vishal Bharadwaj,

I recommend you approach a professional lawyer to draft the legal agreement. This is because while making a legal agreement, adherence to the proper legal terms is important. A poorly drafted agreement may defeat its exact purpose.

Please clarify from the lawyer, should it be a "bond" or "indemnity"? In legal parlance, the definition of a bond is a written agreement in which someone receives the bond (monetary payment) and promises to engage in a specific act, i.e., performing under a contract or appearing in court. A failure to perform results in the party’s forfeiture of the money previously given, or a requirement of the party to pay a sum of money to cover the failure to act.

We need to be absolutely clear about what will happen if either party violates the terms of the bond.

Now coming to using the word indemnity. The definition of indemnity is security or protection against financial liability. It typically occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party.

An employee gets remuneration for the work he/she does. Therefore, the wages paid to the employee are legitimate dues. Now if the employee breaks the bond, how will you prove that the employer has suffered the losses? To prove it, what legal provisions need to be inserted? All these questions are best answered by the lawyers.

Lately, it is observed that the word indemnity has been used very loosely. All types of agreements with the employees or with their relatives upon receipt of death compensation have also become indemnities. It is better to do due diligence better entering into an agreement with the employee(s).

This is an HR forum. Your query pertains to contracts which are governed by the Indian Contract Act, 1872. Not all HR professionals are well-versed in this law. What you would like to do is to lock the employee's career to the company by paying him some extra amount. However, are these lock-in agreements legally tenable? How to decide this?

One more point. What if the employee turns hostile later and says that he did not sign the agreement out of his volition but it was taken from him forcibly? How will you prove that the agreement was not forced upon him?

I have given the above suggestion because there are smart people who have turned the tables against their employers. Therefore, better to do sufficient homework rather than, in future, wring your hands in despair.


Dinesh Divekar

From India, Bangalore
Suresh Rathi

You can not have this kind of Bond--unless you have spent some money in training etc , then yes, you can have the clause that --------will be recovered in case you resign within ---- period.

Bond are illegal

From India, Delhi

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