Facing a TCS Bond Breach on International Assignment: What Are My Legal Options?

Hello Friends,

I would like to detail my case, which could make it easier for the specialists to answer me and thus help me.

1. I have been working for TCS India for 5 years. I am deputed to Europe, working for TCS projects for 2 years now.

2. Recently, I got a new offer from another company in Europe, and I have decided to join them.
3. Since the international TCS bond is for 6 months, my offer cannot wait that long to be valid. Therefore, I have decided to leave TCS by resigning and giving them a notice period of 2 months in Europe itself.

Here is my question - Since I was asked to sign the international bond in India before leaving for onsite, how much harm can it do to me when I breach this contract, i.e., do not serve TCS for 6 months after resignation.

I will definitely discuss with HR to handle the matter, but I will prepare myself for the worst scenario. If HR asks me for an amount that is practical, then I will pay them. However, if they ask for some fancy amount, then I will simply leave.

Now, this brings the court notice and other legal formalities. If TCS sends me a legal notice, will it be valid when I fight in court? As I understand from the forum, such bonds are one-sided and not legal in India. Though I have many points which I could use to sue the company, I do not want to do so unless a worse situation arises, such as:
a) the company takes away our income tax return from the foreign government by making us sign forcibly on the Power of Attorney papers. If we do not sign, then they will send us back immediately as per their policy.
b) the company bills resources like us to clients when we are on a business visa, which is completely illegal for both the company and the client to do - but this happens - I hope all HR people would be aware of it.

Above mentioned two points are just examples that could be used, but honestly, I do not want to use them against the company as I am leaving them not due to any personal differences but as I got a better offer. I would have liked to resign and go on a clean exit, but the long-term 6 months bond is too much, and I can't help it. Please suggest to me about the bond implications as per law, and if anyone has such experiences, it would be a great help to share.

Thanks

Hi,

According to the new TCS separation policy (at least in the US), you don't have to give 6 months' notice. You can give them 3 months' notice from onsite as well. They normally charge 5 lakhs for settlement, but you can bargain hard. Make sure you complete your project and get released properly; then settlements won't be an issue.

Good luck!!!

Hi,

According to the new TCS separation policy (at least in the US), you don't have to give a 6-month notice. You can give them a 3-month notice from onsite as well. They normally charge 5 lakhs for settlement, but you can bargain hard. Make sure you complete your project and get released properly; then settlements won't be an issue.

Good luck!!!

Understanding the Legal Implications of Breaking Employment Bonds

We find a lot of posts on bond breaking. Bonds are legal and enforceable. It is not as easy as one might think to break a bond. There are serious consequences that can occur without the employee's knowledge.

Having done certain research on the case law of bond breaking, we find that it often favors the employer. This is because of the legal route adopted by employers for the enforcement of the bond. Employers go through the process of arbitration and often get an award ex parte, i.e., in the employee's absence. The advantage for employers is because employees are reluctant to part with their address, and the employer serves notice at the old address, securing a favorable verdict from the arbitrator. The scope of the appellate process against such awards is very limited, and the award by the arbitrator is confirmed. Instances of employees resisting such claims are minimal. Once the employer gets the verdict, the time for enforcement is 12 years.

Therefore, it is better to plead with your employer to relieve you from the obligations of the bond by sending an "escalation letter" to a higher authority than your HR head, such as the HQ if it is an MNC. It may sometimes work. In case this also does not work out, you can send a "frustration letter" for the record. In case there is a legal case, this letter may help. For drafting these letters, you need to take legal help based on your specific facts.

The other option exposed by case law on enforcement of negative covenants is where the employer is forced to terminate the employee instead of the employee resigning. This option needs to be exercised and dealt with great care as you might have other issues cropping up. If there is termination, then the bond cannot be enforced.

Also, creating an Employees Forum in CITE HR with an All India Network to provide legal assistance at a nominal cost to defend bond cases on the employee's side can be a solution. This can match the legal strength of the employers.

With Regards,

Advocates & Notaries & Legal Consultants [HR]

E-mail: [Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

Precautions Before Signing Employment Bonds

Freshers or even employees with experience often have to sign a bond. They are forced to sign it and have no other choice. We find many posts on the implications of bonds. It is better to take preventive steps in advance and not repent and be in a fix later.

Before signing a bond, the following precautions need to be taken:

In case the bond is to cover training expenses, i.e., a training bond:

- Check the amount of the bond.
- Check the cost of training and whether the employee will actually spend the amount.
- See whether the liability to pay arises after the company incurs the cost of training, which shall be notified by the employer separately.
- Request a proportionate reduction of the bond amount dependent on the period of service.

In case the bond is to cover service with the employer for a particular period, i.e., a service bond:

- Check the amount of the bond. It must be reasonable and not an unreasonable amount, and also the period has to be checked. This also has to be reasonable.
- It should also mention that it is for voluntary resignation and not for termination or forced termination by the employer.
- Request a proportionate reduction of the bond amount dependent upon the period of service.

Regards,

Advocates & Notaries & Legal Consultants HR

Email: [Email Removed For Privacy Reasons]

[Phone Number Removed For Privacy Reasons]

More at https://www.citehr.com/30808-bond-le...#ixzz15pnjkl9K