Facing a Tough Choice: Should My Friend Sign a 3-Year Bond for a Short Trip Abroad?

Dear HR friends,

I need your suggestion to help one of my friends who is a mechanical engineer working for an engineering company. His company is planning to send him abroad for one week on the condition that he has to sign a 3-year bond for not quitting. If he resigns within 3 years, he has to pay Rs 3 lakhs to the company. Now he is in a dilemma. The company is not giving any guarantee on an increment during the 3 years. Also, his current salary is not good, and he cannot stay in this company for 3 more years. Since he doesn't have an alternate job, he is forced to accept the bond. In my view, his company is playing this trick to retain people. I need your suggestions on how to tackle this situation. He has one more week to decide on this.

Regards - Ramesh

Hi Ramesh,

Very simple. He has to sign a bond only if he agrees to go, right? So, better tell the management that he is not interested in any foreign tours. They would look out for some other options.

Hope this helps.

Regards,
Kumar M

Hi,

If you want to really fight it out, here's the trick. I know it's a bit of a risk, but here it is. One of my friends has tried and succeeded as well. The bond is for three years. However, if the company has not mentioned a specific payment due date in the bond, you can do away with it and pay one rupee each day.

Vinod Vijapur

Hi all,

Thanks for the suggestions. Sorry I did not tell you about 2 more points:

1) If he rejects this offer, management may treat him badly because he is giving an indirect hint that he is not going to stay there for long.

2) In case he breaks the bond, his company may not release his salary and other dues or may not approve his PF request, etc.

Sorry for making it more complex, but I know the CiteHR team is capable of providing a solid solution.

Regards,
Ramesh

Dear Mr. Ramesh,

Greetings!

Regarding PF, the company cannot hold his account. If the employee has his PF number, he can transfer his account when he goes to a new company. It is better to advise your friend not to sign a bond. Instead, he can work in a bad situation with a useless company. Additionally, suggest that he search for a good job.

Rgds,

John N

According to me, your friend should not accept this offer. It's too risky to accept. If in the future he desperately wants to change his job, then what will he do? Paying one rupee a day, as one of my friends suggested, but that's not going to work always, right?

The most important thing for your friend is to enjoy the work that he is doing. He should find out what he is passionate about and then find someone to pay for it. That's what I believe. These contracts and bonds have a very 'not feel good' factor attached to them. Good luck to your friend!

Cheers,
Shraddha

Hi,

As one of our friends mentioned, he/she should not accept the abroad training. It would be better for him to stay in a bad situation for a certain period, hoping that by that time, he will experience a positive change before pursuing the opportunity.

I understand that, in practice, this may be challenging, but to some extent, we have to find ways to cope.

Cheers!!!

Sivaranjani Sriram

Hi,

I think he should clarify the terms and conditions with the company. If he does not leave the company for 3 years, will the company pay him 3 lakhs? Many companies are following this procedure.

Bye

Hi PR,

I read the replies to your mail. Nobody seems to be worrying about the value addition that foreign training is bound to bring to the individual primarily and later for the company. The extension of the contract is quite natural if the benefits that arise out of this training cannot be immediately quantified. It is advisable to opt for the training after negotiating with the management, either in terms of salary increase or reduction of the time period.

Regards,
Harikeyel

If your friend is being forced to sign the bond, he can ask for time to have the bond studied by his lawyer before signing. If the company readily agrees, the risk would be lower. And if the company is reluctant to agree, then your friend will have a stronger position when he refuses to sign the bond.

Regards,
Ryan

Hi Harikeyel,

I agree with your opinion, but the value addition the foreign training is going to bring is not guaranteed. That's why I think it's too big of a risk for three years unless he negotiates to reduce the time period.

Dear Mr. Ramesh,

First of all, I would like to tell you that unless it is a two-way bond, i.e., something given by the company as a reward, I suggest that your friend should definitely go on a foreign tour. There are several advantages to it:

1. His resume would be strengthened if he mentions a foreign tour.
2. He can demand much more than what he is getting due to the foreign tour.

To tell you frankly, in the legal court, no bond has any standing.

Santosh Iyer

Hi,

I think it is not advisable to sign the bond. Yes, training is important and good, but at what cost? The company cannot make people work like "bandhua mazdoor." If your friend is not happy with the company, why can't he look for other options outside the company? With the Indian job market so volatile, he can definitely find a job for himself.

Have a nice weekend ahead!

Bye,
Rajeev

Hi,

In today's market conditions, employers will try to implement measures to reduce attrition rates and retain trained manpower. In this particular case, it is essential for the company to send individuals for training. In many instances, such training is job-specific and may not directly contribute to an individual's career growth.

Employees need to learn how to negotiate effectively by carefully considering the pros and cons. If, upon conducting an objective assessment, it is determined that you will be at a disadvantage, it is better to decline in a straightforward manner. One-sided contracts are generally viewed unfavorably in the eyes of the law.

Brigadier Ashwani Kumar

Dear All,

I agree with Harikeyal. Abroad training will definitely add value and will help him for the rest of his career. For that, he has to compensate something. He has to consider the expenses that he may have to incur for such training if he is paying it from his pocket.

Nasir

Please note that these kinds of employment bonds have no sanctity in the Indian labor court. They are rendered null and void if challenged in a court of law. A company cannot compel a person to stay with it for a specified duration. An individual can utilize holidays, enjoy them, and return. However, they must ensure all their payments and accounts are settled before they depart. In the sense that the Provident Fund (PF) company cannot withhold, they can sign the form from a gazetted officer and submit it to PF authorities, but they should know their PF number. Therefore, one should not worry as no employment contract is legally binding in India, and no court can endorse or support such agreements.

I really agree with this. There should be a broader canvas to be seen. If the company has chosen him for the training, it's a proud moment, and the training will enhance his professional development. Your friend should negotiate the time frame rather than lose this big opportunity. Thanks, Diwesh :P

Hi,

Do not offer this because the bond would be only applicable once he comes back to India. What if he does not?

Regards, Shiva

Dear Team,

Many thanks for all your kind suggestions. I shared your views with my friend, and it helped him negotiate a win-win strategy with his employer. Unfortunately, his employer is not ready to commit to anything regarding my friend's growth opportunities. Finally, my friend refused to accept the offer, and we have to wait and see the consequences.

As some of the members suggested, the objective was not to provide training and enhance his capabilities. They have been using this strategy for the last few years, and my friend has seen the fate of all those sent abroad in the past.

Thanks and Regards,
Ramesh

Hi,

Really, this is a hectic situation. It can happen rarely. I have gone through all the advice given by some professionals. Finally, I am coming to a conclusion that it is better to read the agreement line by line so that we may find out some of the loopholes in the agreement. We can then consult a good HR professional or advocate to resolve this.

Actually, once we commit to any agreement or bond, we have to adhere to the rules and regulations. However, in this issue, it happened in critical conditions. Nevertheless, it is not endorsed by the Labor Laws in India, and it is better to seek advice from an advocate.

With all best wishes,
Krishna

Hi,

I am also facing this problem in my organization. Do you have any suggestions?

Deepak Malik

In our company, already one case is in court because one person had resigned during the bond period.

How can you say there is no bond in India? Have you confirmed it with any advocate for that?

Over to you,
Pranita

Pranita,

It's not that the case will not be heard in court. It means that the court will not rule in favor of the organization unless the bond content follows the principle of equal justice. The principle of equal (equitable is the word - I think) justice is covered in commerce education in college (Business Law) and also in the MBA / PGD course which should have had Law as part of the course content.

It's surprising how many HR professionals think of incorporating bonds where this basic principle of law is not followed. Sometimes, appointment letters are also drafted which totally do not favor the employees, and they are signed because people have this fear of not getting jobs / employment.

Regards,
Ryan

Hi, I am a new member to the site. It is nice to watch professionals exchanging views. Thanks to it.

As for me, concerning this particular subject, your friend has to understand that life involves taking risks. If he is really interested in taking a foreign tour, then he may have to repay the benefits to the company. If not, he has to try out something else. He may not be able to satisfy all his needs.

Moreover, in most cases, an individual cannot be restricted by a bond without proper grounds. Ask your friend to discuss this with his HR person. After all, negotiation yields results.

Wish him success. Soman

Many companies that send employees abroad for training make them sign a bond similar to the one you mentioned. I know of many employees who have not taken up offers made by the company for the very same reason that you stated.

There are two ways of looking at it: A - the company may actually be playing a trick on you, or B - the company genuinely wants to invest in you and upskill you to perform better at your work. If your friend is convinced that he would be quitting the company, then I advise against him taking up the training.

Ralston Coelho
[Website: www.ralstonraz.blogspot.com]

Hi guys,

As I gather from the mail, it is unacceptable that the company is not good and is forcing its employees to go abroad for a week and sign a bond for 3 years.

No organization would send someone just for a week unless it is really critical, as they will incur about USD 2000 for this whole trip. So, if your friend is being sent for this assignment, he should be proud that he is the chosen one, and the organization has faith in him that he can accomplish the job waiting in the US.

If your friend truly believes the company is not good and there is no growth for him there, why is he sticking around and not looking for a new job? Currently, the market is so dynamic that he will easily find a job of his choice. If he has already tried and is not getting a new job, then he needs to do an honest self-assessment.

Also, he mentioned that employees who have gone to the US from this company are facing some problems. What sort of problems are these?

There are a lot of questions arising for me at least, so you guys should sit down, weigh all the pros and cons (have a proper debate among yourselves), and then decide. If he has a good rapport with his manager, he can voice his fears/concerns and sort out the tangle.

I hope this gives a new perspective to view and weigh a situation and arrive at a practical solution.

Warm regards,

Roopa.

You know, the Supreme Court has declared a case void where a female employee of American Express Bank was sent to another country for extensive training. The lady signed a bond worth lakhs of rupees. When she returned after training, she worked for some time and then took on a better assignment. The employee filed a plea in court, which eventually reached the Supreme Court.

You can search Supreme Court cases at www.judis.nic.in by entering the appropriate search words.

Regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)

Hi,

As per my view, your friend should not accept this offer. Please tell him to be very clear that he is not interested in going abroad. Therefore, they will have to search for another alternative. In the meantime, please advise your friend to look for another job, as this could always create a problem for him and may manifest in a different way.

Thanks and Regards,

Jennifer Isaac

Well, I expect a sense of maturity and intelligence from my fellow HR professionals.

Have empathy. Put yourself in the shoes of your employer and examine what he is doing.

Do you know how much it costs to send an employee for an onsite project? You can't have "tricks" to reduce attrition, but you need to formulate "strategies". All big companies have this strategy. Like TCS, they send all their employees (Technical or Functional) to the USA for six months. Only people who serve the organization for 18 months are eligible, and one is asked to sign a bond for two years. This is fair enough.

Another good company sends its employees for SAP Training to Siemens, and they also take a bond for one year.

Here, none of us is doing any charity. If the company is doing something for their employees, they want something in return.

Today, we say that there is no career and growth in BPOs. How can it be? Companies can give you a career or growth only if you are providing stability and consistent production.

Look at the bigger picture.

Regards,

Sanjeev Himachali

(BLOG: http://sanjeevhimachali.blogspot.com/ and <link outdated-removed>)

Dear Sanjeev,

Let us compare apples to apples. If companies form win-win strategies, then both employers and employees benefit. The company I am referring to does not belong to that category. Their intentions are very clear. Additionally, there is a lot of evidence from the past that employees who signed the bond were treated poorly compared to others. I have great respect for the companies you mentioned. The culture and values vary from organization to organization, and it is challenging to explain them unless one experiences them.

Hope you agree with me.

Regards, Ramesh

I agree with Sanjeev Sir, there is always a cost attached to training. If we look at the employer's point of view, foreign country training is expensive and a headache. Today, with job options and offer letters in every employee's pocket, it becomes a tiresome job to retain them.

The present situation is interesting, but the person involved has to be sure of his future. If he doesn't see growth in the company, he should decline the offer and explore new options. However, if the training would add to his skillset and he is capable enough to apply them, then I believe success won't be a factor even if the company doesn't promise any increments.

This is what I can say from my side, just being a student.

Thanks.

Regards,
Aanchal

Hi Sanjeev,

I completely agree with you. Today, the employees never miss a chance to criticize their employers. There is no loyalty, and no guarantee that someone who has joined the organization today may be there tomorrow. The turnover rate in the IT/ITES industry is high despite companies making significant efforts to support their employees.

If you ask an employee to sit in the employer's chair and make a decision, they are not ready to do so as they know they are wrong and cannot justify their actions. I agree that there are a few organizations that promote unhealthy and unethical practices. Employers and employees need to be farsighted rather than focusing on short-term accomplishments.

Roopa.

Dear HR friends,

The company is not giving any guarantee on increments during the three years. Also, his current salary is not good, and he cannot stay in this company for three more years.

Regards,
Ramesh

Ramesh, be practical. If the company is so bad that it cannot give an increment to this employee, why would they send him for an onsite project? They are investing in your friend because he is a good resource. They want to give him international onsite experience, and certainly, they want to retain him. If he is not good, why would they spend so much on him?

Regards,
Sanjeev Himachali