Feeling Trapped by a One-Sided Job Bond: What Are My Options for Leaving?

Dear all,

There is a situation for which I need experts' help. I have been working with my current company for the last 2 years. I was given training to enhance my skills for one of the specialized jobs in the company (a skill that is not useful outside the company), and I was asked to sign a bond for 3 years. If I breach the bond, there is a significant amount I have to pay. However, at the time of joining or in the appointment letter, nothing is mentioned about the bond as it was asked to sign after joining.

According to the bond, I cannot leave the company, but the company can ask me to leave at any time they desire. Now, my question is, if I leave the company before completing the bond period, what can be the consequences? I have all the records of the money spent by the company on my training, and that amount is not significant. However, the amount for which the bond is signed is very substantial. During my job, I have generated a substantial amount of revenue for the company, which is multiples of the bond amount, and I have records for that as well.

I have a better opportunity now, and my current employer is not taking care of me as an employee. I am asked to work for more than the specified hours in the appointment letter, no holidays, no weekly offs, etc. Under these conditions, could anybody give me correct advice?

Thanks in advance,
Rahul

If your situation is analyzed from the point of view of Industrial Relations, the agreement or bond signed by you is invalid and not maintainable. But if you have been appointed as an employee in the managerial cadre and the bond is signed in the same capacity, the matter may have to be referred under the Contract Act. Under normal circumstances, the bond amount shall be limited to the amount spent on training of the employee only, and the issue comes into the picture only when an initiative is taken by the employer against you when you leave the establishment.

Regards,
Madhu.T.K

I agree with Shri Madhu that the bond amount should not be higher than the expenses made by the employer towards the training sponsored to you for enhancing or developing skills that you were not in possession of prior to that training. It may also include the salary paid during the training, training cost, lodging, boarding, and any other expenses directly connected to the training. However, if the amount is higher than this, most courts will not entertain it. Hope this will answer some of your queries.

Thank you

Dear Rahul,

The monetary part of the breach goes only to the level of what the company has spent for your training and to the loss of the company due to your absence (which is very rare).

Thank you.

Hi Rahul,

Whatever the matter may be, if you have signed a bond and in lieu of training, until and unless the cost is recovered (which will be mentioned in the bond), the bond will be valid. In case you leave the employer, they can sue you on that behalf (and believe me, the decision will be against you in this case).

Solution: If the current employer is not taking care of you, then ask for unnecessary leaves or do whatever they don't like. They will ask you to leave, and you can be free from the bond with dual consent.

Regards,
Ruchi

Dear Madhu, Raj, Mahesh & Ruchi,

Thanks a ton for the time taken by you to read my post and to reply to it. My current employer has utilized my skills to the maximum extent (just imagine very few holidays, very few weekly offs, and more than 10-12 hours working). Due to this, the company has recovered the amount mentioned in the bond long back. Well, I am not in the managerial cadre in this company; I am a service engineer.

Ruchi, the solution suggested by you sounds good, but my field is very limited and it's a very small circle. If I misbehave in this company or do any kind of conduct like that, it would not be a wise decision. But I had read somewhere that a one-sided bond is not valid as per the labor law of India, is it true?

Actually, the company is quite small but still making very good profit even in this recession period. However, when it comes to profit sharing, it's shared amongst the top management level and managerial cadre only. This is the major reason for frustration.

If they can prove, and if you had in fact received any expensive training, you will have to pay the training cost and whatever other expenses that the company may have incurred. Most companies have their employees sign some kind of training agreement to retain the employees, and if they decide to leave, they start troubling them. Many companies send legal notices to employees, but for court, they need evidence like training fee details, training certificates, training venue, etc., which they can't even show. In-house training is not considered as cost-involved training - a few companies on the first day provide some training sessions like 'know your company,' HR practices, and so on. Do not worry and think your case stands nowhere. If they send any legal notice, instead of giving money to them, spend on a good lawyer.

I am also facing the same problem. I am currently selected to join the Indian Army. Therefore, I left the company. I want to know if, with that signed agreement, they can file a police complaint against me.

Hello everyone,

Is there a legal employee bond with a security deposit? If you leave the job before 3 years, you have to pay 6 months' salary. The security deposit will be refunded to you after leaving the job.

No, there cannot be any bond in service agreements. You cannot insist on any security deposit as well.