Trapped by a Job Bond: How Should I Handle This Unexpected Demand?

Hi all,

Please be patient and read my story and provide your suggestions.

I joined the IT services providing company. During the interview, they told me I would be placed in a technical team to work. However, after I joined, they made me work in non-technical roles which offered no career advancement. When I inquired, they explained it was company procedure and that I would be moved after 3 months. We requested placement in the technical team every day. After a year, they asked us to sign a bond for the technical team. Due to my difficult situation, I signed the bond and started working. I completed 13 months of work, although the bond required me to stay for 18 months. Despite signing the bond, they did not increase my salary significantly, which was much lower than the standard rate. Consequently, I decided to seek opportunities at a new company and resigned from my current job.

When I left the company, they did not raise any concerns, and I received my relieving and experience letter without any issues. However, after three months, they are requesting the bond amount of 1 lakh from me. I did not sign the bond on official bond papers; instead, I signed it on the office letter pad.

Please provide me with suggestions on what I should do in this situation.

Employment bond for any amount is illegal. Yes, if the employer has spent some amount on imparting training to an employee, the employer can claim that amount when the employee leaves without giving an opportunity to the employer to recover it. In the absence of any training given exclusively to the employee, the bond will be interpreted as compelling one to work where they do not want to work or simply as "bonded labor," which is illegal.

In the IT sector, the tendency of claiming notice pay is very high nowadays, especially during times of recession. I remember that two or three years ago, IT sector employees were strongly against labor laws and trade unions. They referred to themselves as "professionals" and not workers. Now, realizing that they were somewhat less than workers, they have started thinking about trade unions and the Industrial Disputes Act.

Regards, Madhu.T.K

Dear all,

One thing I would like to say is that if your employer has relieved you and given you the relieving letter, then you can reply to them stating that your relieving from the company is legal, and hence there is no need to pay the bond amount. Regards, Jayesh.

Hi all, please be patient and read my story and provide your suggestions. I joined the IT services providing company, and during the interview, they told me I would be placed in a technical team to work. However, after I joined, they made me work in a non-technical role with no career prospects. When I inquired, they cited company procedures and said they would move me to the technical team in 3 months. Despite our daily requests to be placed in the technical team, after a year, they asked us to sign a bond for that team. Due to personal circumstances, I signed the bond and began working. I completed 13 months, but the bond required me to stay for 18 months. They did not provide a better salary even after signing the bond, significantly below the standard rates. Therefore, I found a better job and resigned.

When I left the company, they did not inquire about anything, and I received my relieving and experience letters without any issues. However, after 3 months, they are now demanding the bond amount (1 lakh). I did not sign the bond on official bond papers; instead, I signed it on the office letter pad. Please provide me with suggestions on what I can do in this situation.

Thank you.

I worked 5 months in an automobile company as a DY Manager HR. As per the appointment letter, there was no probation period mentioned and clause 13 stated that the company can terminate my services by giving one month's notice pay (Basic salary) only. However, the appointment letter mentioned salary/wages (all perks). I did not sign this letter but received full & final settlement dues. Is this legal or not? What effect will this have on my future jobs? What legal action can I take? Confused.

Dear Bhupendra Singh,

Since you have received full and final settlement, there is no other option but to get your relieving letter from the company. Retrenchment compensation shall mean basic salary + Dearness Allowance (if applicable) only. If the company has paid one month's salary as compensation, that is sufficient legally since you had worked only for 5 months. Being an employee in the cadre of manager (Dy. Manager), you have no recourse in the Industrial Disputes Act to deal with it.

Regards,
Madhu.T.K

Hello Friend,

Your situation is pretty common where an employer gets a bond signed by an employee for a certain period. When you have left the company and received the relieving documents, it clearly indicates that they didn't file any recovery on your account before that. Now, if they are asking for some money and sending you a notice, it could be because of some market reasons or something else. However, the step you have taken was for your own progress and good. There can be no employer who can stop you from doing that. You can clearly state the reasons you have left the organization for.

Best of luck.

Parya

Hi,

Please do not worry for the following reasons:

- They have already given you the relieving/exit letter.
- As the bond is not a legalized document or stamp paper, they cannot cause you any harm. Anyone can create a letterhead these days, buddy, so please stop worrying.
- By any chance, do you have a copy of your bond? If so, please maintain a copy of the same safely for further purposes.

Regards,
Diya.

Employment bond itself is void, and therefore, the question of whether a bond should be undertaken during probation or confirmation does not arise.

Regards,
Madhu.T.K