Feeling Trapped by a Job Bond in India: How Can I Move On Without Legal Trouble?

Hi All, I have joined a company based in Noida. I have signed a bond for 1 year, and they have taken a cheque of 2 lakh rupees from me with a zero-balance account. It's only been a few days in that company, and I have realized that it's going to be very tough for me to work there. I feel there is a lot of exploitation, and I am not able to explore my skills. Although office timings are from 9 to 6, I have to stay until 10 as well.

Please suggest how I can move on from this company.

Hi Shripad,

Thanks for your suggestion. However, I don't want to go there now. I have given 2 weeks, and on a daily basis, I am being underestimated and demoralized. I can't work in such an atmosphere. Please suggest some way in which I can make a move from here without any legal action being taken against me.

I deeply empathize with your situation. First, executing the bond by an organization is termed legal as long as the employer is fair. If the bond is meant to exploit the employee, then you can challenge the bond in court with the pretext that the employer pressured you to sign the bond in lure of a job. Now, the employer is exploiting you for his gains.

As support, you need to take printouts of all the scenarios which you shared with HR (formally/informally) to ensure there is support for your case. As such, a bond is just a piece of paper to scare the employees. You can terminate the bond anytime by giving a legal notice to the employer and filing a case of exploitation/harassment. Please consult a lawyer if you wish to do so.

Cheers :-)
Ash

Hello,

Please refer to your appointment letter's conditions and seek guidance from a labor law lawyer.

Understanding the Bond Agreement

Please go through the terms mentioned in the bond signed by you and your letter of appointment, and you will know the consequences in case you resign. The bond will not stand the scrutiny of the legal system and court if the terms of the bond are discriminatory to the employee and only favor the employer.

You can also find out from the history of the company regarding similar past cases. Has the company ever made use of a security check, and what has been the response after the bouncing of the check?

In case the bond signed by you is perfect from a legal point of view, and you decide to quit, then you will have to follow the terms of the bond. So find out the legal and technical validity of the bond and then decide about leaving or taking any other action.

Thanks & Regards

If you quit, they may take legal action. The best thing you can do is to inform them that you can't work past 6:00 pm. Just frustrate your boss and employer until they ask you to leave or resign. The bond is mutual; if you work poorly, they can't terminate you. So, if you don't want to work with them, create problems for them until they ask you to resign.

Be on time and leave at 6. Don't work extra; tell them clearly, "This is not part of my job." They themselves will make way for you.

Let me first ask you, are you sure about the next employer you are going to work with? What makes you think that the work is not proficient? Work hours in any company would typically be more flexible rather than frame-based. You mentioned that you are a very new employee to that organization. It takes a little while to adjust and settle into any new work environment. Could you please provide specific reasons for your feedback?

Thank you.

Yes, breaking a bond is illegal, but people do it and face the consequences. As you know, any court in India will take years to settle the issue. By that time, you must have grown to new heights, and even if the court rules against you, there is nothing to worry about. Your new employment must be much better placed, and instead of continuing with a job that does not challenge you, it is better to take a calculated risk.

Considerations Before Signing a Bond

Before signing a bond or issuing a blank cheque, always think ten times and consult your seniors. Working late is common in the industrial scenario now, but if it is a job that you do not like and will not provide you with challenges, there is no point in wasting your energy. Look for something that suits you better!

Do you have a photocopy of the cheque you gave to the organization? To the best of my knowledge, an undated cheque cannot be invoked by the organization! Please check the correct position on this with your lawyer. Unless the organization initiates your separation, you would certainly lay yourself open to legal action, at least civil if not criminal. You would probably win in the end, but would have to face the nuisance in the meanwhile.

Since many of the suggestions given to you, though practical, are not very professional, I would not like to comment on them. All I can say is, create a situation in which the organization prefers you leave rather than you taking the action of separating. (Falling ill and remaining absent every now and then is a fairly good reason).

Regards,
Gerry303

Hi,

As mentioned above:

1. Please check the terms of employment in your appointment letter and bond.
2. Consult a lawyer and take his advice to be legally correct.
3. Learn from your mistakes and do a background check on the company you are joining.

Regards,
SF

Yes, it is true. You should not make hasty decisions. Regardless of where you work, there will be positives and negatives. So, take a little more time.

I would suggest that while you are there, inform HR that these are your concerns and observe the responses. Keep all communications in writing.

Close the bank account and simply resign from the job, leaving the company by stating that medically I am not feeling well. Then they can't do anything to you.

This is a very critical position for you, and I totally agree with Harshil and Benedict. Annu, please check the appointment letter to see the terms and conditions, and you need to meet with the HR Department and the employer to present the current situation in writing or verbally. In the future, do not sign any bond without reading the terms and conditions.

Thanks,

Regards,
Chander HR Executive
[Email Removed For Privacy Reasons]

Just get that cheque canceled from your respective bank. I am sure you have that cheque reference with you. Afterwards, you need to search for a job, and you need not show this company as your previous employer.

Handling Employment Transition

Here, there can be two cases. If you show this as your present employer, then your next employer will need its relieving letter. You can strike a deal with them if they are willing to buy it out. Or tell them the exact situation and switch with a minimum hike. If possible, try to convince HR to offer a backdated offer (it is tough to get, but many companies do that with a nominal bond of 6 months).

If you don't show this experience to be counted, then you need to justify your gray tenure. (You just cannot say that you were jobless!)

Thanks and Regards,
Ankit Gupta

Understanding Bonded Labour and Training Bonds

Bonded labour is not permitted under Indian law, and any act by the employer will be deemed an offense under the Bonded Labour Act. It is only a training bond where the employer has the right to exercise power and can compel the employee to serve a minimum tenure with them as agreed upon, or else to pay an amount equivalent to the training cost incurred by them. This training bond contract is enforceable in the court of law, and all such amounts are recoverable from the employee if the terms and conditions previously agreed upon are not complied with by the employee.

From your query, it does not seem like a training bond, so there is nothing to worry about. You may discontinue at your own accord. If the employer asks for any recovery, get it documented and ask them to send it through RPAD. On receipt of any such document, you may file a legal suit stating that the employer is coercing you to work under the shelter of the Bonded Labour Act.

Regards,
AS

My dear, do not worry. No company can keep you under bond as it violates the Bonded Labour Act. I remember, just check it; such a case was dismissed at the Chandigarh High Court a few years back. Go through your appointment letter and the date you mentioned on the cheque (I don't think the date was there). Any progress on that, then contact me.

Wish you all the best.

Mano

I have a different perspective, by the way. Asking you to stretch your time beyond affordability is wrong. However, if you are provided with an opportunity to learn new things and take on challenging tasks, you can increase your stress tolerance level. If there is no track of growth, kindly consult a labor lawyer for assistance, or wait for a situation where you can express your standpoint directly to your boss and then quit with clean hands.

Thanks and Regards,
Vivek.

This appears to be a one-sided bond and, therefore, will not hold validity in a court of law. However, if you want to leave, they will forfeit your money, and getting it back will be a long, drawn-out legal process. Perhaps what you could do is bear it out for a year and then resign once they have returned the money to you. Meanwhile, try to leave by 6:00 PM, stating you have an ailing mother or mother-in-law.

Hi,

If I give medical reasons and apply for leave, can they still put a case against me and claim the cheque that I have given? Please suggest.

I am in a Recruitment Profile. No training is being provided to me; it's a software company that said CMMI Trainings will be provided to candidates. But being in an HR profile, it's of no use to me. Moreover, no training is currently provided to me. I was thinking of applying for leave on medical grounds. Now I want to know, can they also put any case on me? And can they claim an undated cheque from me?

Reference to the 'Bonded Labour Act' is out of context here. I am not sure whether such a statute exists at all, and if in case it exists, it is applicable to Agricultural Labour and not to the IT Industry.

Reference to the 'Bonded Labour Act' is out of context here. I am not sure whether such statute exists at all, and if in case it exists, it is applicable to Agricultural Labour and not to the IT Industry.

I am not sure regarding breaking the bond, but I have learned from one of my seniors that if the employer breaks the bond, there are no issues. If you are going to break it, you have to pay the labor cost for the remaining agreement years to the company. For example, if your salary level is 15k per month, it means you will have to pay 12 (remaining month's salary) * 15k (current salary) = 12 * 15k.

I am not sure about that, so kindly confirm it and send me an email also ([Email Removed For Privacy Reasons]).

Thanks & regards,
Balakrishnan