Can My Bank Enforce a Service Bond and Deny My Resignation if I Haven't Signed It?

I am working in a Public Sector Bank (Indian Govt). My appointment letter says that I will have to execute a service bond of 3 years or pay 3 lac for breaching. I have not signed the bond and want to quit. Can they force the bond and deny the relieving order as I have accepted the offer letter (and returned the signed copy) which says that there will be a bond.

You have accepted the offer which says that there will be a bond, but in the offer terms and conditions, the details of the bond were not explained. Now, when you have received a copy of the bond, you have not signed it and want to quit the job as the conditions of the bond are not acceptable to you.

In my view, you have not signed the contract/appointment letter, so the question of breach does not arise, and legally they cannot sue you.

Thank you,
J. S. Malik

I am also of the same opinion. Actually, I have been working with the bank for the last 6 months, and they never bothered to ask for a bond. Now, when I have served the notice, they are giving me nightmares.

Anyway, thanks for validating my thinking, but still, I am very worried... they may just hold my relieving letter. Can you please clarify one more thing?

In my offer letter, it says, "The bank can terminate your services by giving one month's notice during the probation period." It never mentions if I can also resign by giving one month's notice. I think it should be from either side. They are asking me to give 3 months' notice, which is applicable to confirmed employees. If there is any specific clause related to probationers, then that should be applicable as a general condition for the 3 months' notice.

Anyway, thanks for helping me.

You are correct. If you ask me, this appointment letter is void ab initio because the contract should have a clause of vice versa. If you leave, we will pay three months' notice, but if we terminate you, then one month's notice is not justified. This appointment letter will not stand in a court of law.

Regarding holding the relieving letter, you can understand for yourself.

Thank you,
J. S. Malik

Can you quote some rulings to substantiate my position? Some legal document or some Government of India guidelines. I really don't understand how a public sector bank can issue an illegal, unjustified appointment order. They say that it's the bank's policy and fighting the case in civil court will be quite a daunting task. If I can get some sort of document which could tell them that sticking to unequal terms is illegal, then that will help me a lot.

Dear,

One-sided agreement is not an agreement. Yes, if they are sending you for training abroad and investing money in your training, then the bank has the right to recover the money; subject to the condition that both parties have signed the agreement as an acceptance. Since you have not signed the bond, they cannot demand the bond amount. Please return the bond copy duly signed by you to indicate that the bond is not acceptable. Also, submit your resignation simultaneously.

Ak Malhotra

Thank you for your reply.

They have not given the bond to me as of now. I don't know the terms and conditions of it, but in my offer of employment letter, it was mentioned that I have to execute a service bond. Now, as I have resigned and I am under the notice period, my boss is insisting that "what if you have not signed the bond, you agreed to it while accepting the offer letter."

Although nothing has come up in writing from my HR Dept, still, I am worried if they really arm-twist me to give Rs 2L. All the employment agreements are always one-sided. Do you suggest that all of them are illegal?

Dear Friends,

I have gone through the content of everyone. I would like to request all of you to please read THE BONDED LABOUR SYSTEM (ABOLITION) ACT 1976. The act clearly states that you cannot have any bonds related to employment. Even if anyone has or is willing to enter into such an agreement, it will not be considered a valid agreement or contract (please note this, everyone).

Meaning, under the law, such contracts or agreements will not be valid, and the affected person can approach the court.

Hi Anjan,

I was trying to read the Case No. from the Karnataka High Court website, but it asks for the type of case, date, etc. How can I get the actual content of that case? How will it be relevant in my scenario? Please help me.

This is a case filed by an employee of BEML (PSU) against not relieving him after resignation, stating the bond terms which BEML recently implemented for all employees. The terms state that no employee can resign within three years of joining the organization; if they do, they have to pay 2 lakhs.

Hi Anjan,

Thank you once again for showing interest in my cause. You mean to say that the case has been decided in favor of the employee. I tried to find the said case No. 9931 of Year 2008 from the High Court of Karnataka site, but the site asks for Case Type (AC, CA, CMP, COA). I am not a legal pundit, so all these terms are very tough, although they may have obvious meanings for you.

Thanks in advance for helping me.

Can you please specify which section in the Bonded Labour System (Abolition) Act, 1976 specifies that the employment bond is illegal?

Thanks & Regards,

Asitosh Sharma
+91-9822465532

Dear Friend,

If the company does not send you for training or invest money in your new learning, and you have not signed a bond, you can move as per the appointment letter, as mentioned in the notice period.

Arvind Chourasia