Leaving an MNC After Signing a Bond: Do I Really Have to Pay the Penalty?

I have signed a bond with an MNC for 1L and 2 years, but now I want to leave the company after 6 days. I haven't received any salary or training yet. Do I have to pay the company with the bond money or not?

But sir, I'm leaving the company due to some personal problems which have arisen now. So, can you please provide me with a solution for all?

Depends on your company policy. Please check with your HR. If there is some valid reason, you may also request your company to waive off the amount.

Yes, it depends on the company and/or your reason.

Present a case to your HR:

1. Give them time to consider your alternative.
2. Present your case well - (for a better or another job - no one will agree).
3. If possible, present your case to top management in a written application.
4. If you are not joining another job, show that you are ready to sign an undertaking stating this fact (this will strengthen your case).

Though bonds are not the right way to force anyone to work, it is important that you do not leave on a bitter note.

Hi Hemant Lokesh,

Bond is not a legal document. It has no legal validity. Just write a letter to the HR and leave. We are living in the 21st century. Bonded labour has been abolished centuries back. You can always say that the company forced you to sign under duress. In any case, you have not attended any training, etc., so you owe nothing to the company.

Hemant, if you have only completed 6 days, why do you want to resign? Just stop coming to work. They will ask you the reason. Don't answer them. That's it.

Secondly, as per the IPC, no one can force you to work for them. If they take legal action against you (which they can't), you can say they were harassing you.

Hi, you have worked only for 6 days, and you are not willing to continue with that job, okay. Before joining that company, you need to verify the company details. According to the law, there is no bonded labor in India, only contract workers. If you are not willing to work, you have the right to leave that organization. No need to pay them at all. You did not mention your educational certificates. Did you put them there for security? Okay, no problem, just leave that company. If you receive any legal notice, just file a writ petition stating, "There is no bonded labor in India." Moreover, if the organization is forcing you to work with them, you can go to the Human Rights Commission for justice.

With Regards,

J. Srinivas MSc LLB

@ all,

Thank you all for your opinions.

Yesterday, I sent an email to the company's HR manager stating my intention to leave the company. He informed me that I would need to pay the bond money. However, I pointed out to him that according to the service agreement, the bond only becomes valid once the person has completed their technical training. Since I have not started my technical training yet, I explained this to him. After looking into the matter for approximately 10 minutes, he mentioned that our legal committee would review the situation.

My original documents are in my possession and not with the company. Therefore, I have decided not to respond to their calls or emails. Is this the right course of action?

Thank you.

Hi,

Don't go to the company and stop answering their emails or calls. Nothing will happen to you.

Riyaz

Of course, you can leave your job. If the company is cheating you, you can leave the job without paying any money and forget about the bond. But first, talk to your boss before taking any action.

With Regards,

Safi Vohra
Production Operation Manager
Emails:
1) vohrasafi@rediffmail.com
2) vohrasafi@gmail.com
3) vohrasafi@hotmail.com
4) vohrasafi@ymail.com

Vital Diagnostics (P) Ltd.
Navghar, Vasai (E) Dist: Thane- 401 202.

Hi, Hemanth,

You should talk to them in a sophisticated way when you want to take the call. You should take the call, but if they are trying to cause any problems for you, then you can stop answering their calls and emails. They should feel that you have a valid reason, and you should maintain yourself as a well-matured individual. Everything is going to be alright.

All the best! Cheers,
Padma

If the clause of technical training is mentioned in the service agreement, then there needs to be some proof required by either party to prove the training completion (certificate of completion, etc.). Don't worry since you have already written to HR about your reason for separation; let them go through the procedure of consulting their legal department. And you should not avoid taking their calls or emails since the case can go in your favor too.

User input:

Why are you not replying? They are reviewing your case, and you have not undergone any training, so they will release you from bond obligations. Would recommend not to burn bridges as the world is very small.

Hemant,

Kindly do not repeat the same elsewhere. You should also understand that the company has taken pains to search for you. There is pain in recruitment as well. Moreover, you might have a valid reason, but within 6 days of joining...? I understand you might have gone to check the work environment and the job load, and upon realizing that the job load is too high, you planned to quit.

Yes, that's right. Don't answer their calls or emails. I am happy to know that all your original certificates are with you. So no worries, go ahead. All the best.

Hi Hemant,

Signing a bond has no legal validity. Such practices are followed by some draconian organizations that don't know there are better ways to retain employees. Including a bond during the joining formalities is not an ethical way to attract employees.

You have mentioned that your technical training has not started as well; hence, the company has not incurred any expenses on you.

You have mentioned that you have discussed this issue with your HR, but they told you that they will refer this to their legal committee. Some of our HR forum members have suggested that you not answer their phone or emails. This is not advisable since you have submitted your contact number and details during your employment. If your ex-employer wants, they can send you a legal notice to your address as well, stating that you have breached the contract.

My suggestion to you is to either meet the HR person directly (and fearlessly since you have already left the organization on your own). Submit a formal resignation letter, citing the earlier discussion. State a valid reason for your resignation. In case they don't acknowledge your resignation letter and refuse to give you a relieving letter, send it by Regd AD and retain the acknowledgment copy for your reference. This is a professional way to end the association.

Last but not least, don't get hassled by the threat of such bonds as they don't have any legal sanctity in the court of law. Yes, in the future, be careful about what you sign.

Hemant,

Not answering calls is not the right way. As you yourself have figured out the fine prints, I assume the company would not have any stance to stop you from leaving or to make you pay. However, the corporate world is very small. We never know who we stumble upon where, and I am sure no one would want to be caught in an awkward situation. Stand your ground but don't turn your back on the situation; converse and resolve.

Riyaz has a valid point. In legal terminology, such agreements are unenforceable, but be sure to have the bond vetted for legal standings as there may be some points which may create some trouble. In principle, no bond can force a person to work for anyone, and no compensation can be a part of such an agreement. Bottom line, an unenforceable contract prima facie view.

Regards,

RR

Hi Dear,

As I understood from your words, you have no idea about the bond, and I suggest that you may leave the company by discussing your genuine problem with HR. After all, we are all human beings. A bond is not a big thing. You can leave this organization anytime without intimation, but this gives a negative impact of yours. So, it's better to first discuss and move out with respect.

All the Best.

"I have signed a bond with an MNC for 1L and 2 years, but now I want to leave the company after 6 days. I haven't received any salary or training yet. Do I have to pay the company with the bond money or not?"

Hi,

They cannot bind you to work with them. If you have sent an email, it will serve as proof of your resignation. Since you did not participate in the training, you are legally protected. You may choose to answer their calls and emails, which will not impact you significantly. However, if you decide to respond to emails, be cautious about the content you send, as an email can be considered a legal document.

Thank you.

Dear Bond should be two-sided only and not one-sided. It has no legal validity as such. You can simply forget about it and move on to your new assignment, enjoying life.

Yours,
N Kannabiran

Bond is a contract between two unequals and hence not valid in the eyes of the law. Had you not signed the Bond, you would not have got the job, so you signed it. If you had refused to sign, the company would have selected somebody else. They never needed you, but you needed the job. Since you have worked only for 6 days and not received any training, the company cannot have any claim against you.

With the reason not to leave on a bitter note, you can simply send a resignation letter explaining your problems and stop attending the office. If the company wishes to invoke the Bond, let it approach the court of law. The court itself will say that such a Bond, being a contract between two unequals, is not valid.

Hi Gaurav Bhugra,

I wanted to inform you that my technical training was scheduled to start on 3rd August, but I left the company on 26th July. The training could have been focused on areas like Networking, Java, or .NET. According to the bond I signed, I am required to serve the company for 24 months after completing the technical training, including the training period. However, my technical training has not commenced yet, and I have already left the organization.

Thank you.

Hi,

There is a law called ABOLITION OF BONDED LABOUR SYSTEM. This law clearly states that a person should not be compelled to work for an employer if he doesn't have the willingness. The other expenditures spent by the company to train a person are the liability and responsibility of the company to mould him for them. The responsibility of the company is also to satisfy the needs of the employee. If they fail to do so, an employee can quit, and no one can stop him.

The company's standing order may state anything for its employees who are with them and would like to be with them, but they cannot control a person who has terminated his employment. After refusing to be with the company, it means he is a person but not an employee.

In this case, he is in probation for a very short period of only six days, so he need not stay with the company for a single minute, and no one can threaten him. Some members suggest well in this regard. My wishes to Riyaz, Srinivas, and all. Hats off.

Ravi Shankar.S

Hi!

Did you deposit 1 lakh Rs. to the company, or was it just a commitment? If it was just a commitment, then there is no need to worry as no one can force you to work since bonded labor is not allowed in India. Regardless of what the company says, if you have deposited the amount, then you need to request your HR department to process the refund. In case it was a draft that has not been debited yet, inform the bank to stop the payment for the same.

Hope this helps resolve your issues.

Regards,
Alicia

Please clarify whether it is a bond or a service agreement. A bond is not valid, but a service agreement is valid in court.

Regards,
Y. V. Madhava Reddy

Hi,

Bond is not a legal document. It has no legal validity. Just write a letter to your HR and quit. You need not pay any kind while your training program has not yet started. The company has to show the cost of whatever it spent to train you if they want to claim the amount from you. But don't leave your office without any information. It's not a good behavior, especially in this kind of situation. Things will be okay soon. My best wishes.

If you had not signed the bond, you would not have got the job. The company would have selected some other person, but you had no option to go to another company for the job. Therefore, you had to sign the bond. In the said bond, the company has not given any assurance that if they terminate your job within 2 years, they will pay you Rs. 1 lac. Hence, this is a one-sided bond. It is a contract between a lamb and a lion, not sustainable in the Court of Law. Therefore, just make a request to the company to accept your resignation and relieve you. If they don't accept, you can just walk out. They will not be able to force you to pay the money as such bonds are not valid bonds. The reason being, first, it is a one-sided bond and second, it is between two unequals.