Feeling Stuck in a Job Bond: Can I Break Free Without Facing Legal Trouble?

Hi, I have signed a bond with the company, and I have attached a copy of the same. However, the employer is exploiting us due to this bond. Salaries are not being given on time, and there are no reimbursements for official work.

Queries After One Year of Service

Having completed one year, I have the following queries:

1. Is it possible to break this bond?
2. No training or software has been purchased as indicated in the bond.
3. HR is not providing a relieving letter or experience letter.
4. HR is threatening legal action if we do not pay the bond money.

Please help.

Thanks in advance.

Dear Poonam, any agreement or bond that binds an employee to serve a company for a certain period is not valid, so you need not worry; you can resign at any time. If you wish to resign on good terms, you can do so citing medical grounds. If such bonds were legal, every employer would have agreements for extended periods, and there would be minimal attrition over five years.

Regards,
Adi

Dear Rohit, the issue you have raised is subjective and should not be commented upon in general. I assume that the company must have issued an appointment letter to you apart from this agreement. You have not elaborated on those terms. Please check whether the company has violated any terms of the appointment.

Observations on Agreement Legality

My observations are that the legality of any agreement depends on the contents and terms of the agreement. Based on your agreement, there appears to be no illegality. It is an instrument by which two parties agree to act upon and bind themselves for a certain period.

You have signed the document with free will and a full understanding of the implications. If you contravene the terms, you are naturally liable for the consequences.

It would be wrong to generalize that all bonds/agreements are illegal.

Ethical Considerations for Breaking Bonds

One more point for all members to think about: Is it ethical and correct to ask for ways to break the bond through a platform like citeHR? If you have grievances against the company and feel exploited, there are many other internal forums within the company where you can raise your voice before considering ways to break the bond.

Regards,
Anil Kaushik

Validity of Unregistered Bonds

If any such bond is not registered on the stamp paper and is simply given in the appointment letter stating that you have to stay up to 2 years or so, then is it valid?

Regards

The bond is fully illegal because the consent doesn't have consideration on the employer's side. The bond would be valid only if the terms and conditions are necessary for both parties, as the employer would also be restricted from retrenching. This is not mentioned in the bond, so according to the Indian Contract Act, the bond is invalid. There are many other reasons for the bond to become void.

So, you can definitely change the job at any time at your will. Best of luck.

Human Rights and Employment Bonds

As I think, every individual is first of all a human being and then an HR professional. We cannot limit his "Human Rights" in any case, i.e., the right to earn a living from any legal source. So, it is very reasonable to provide the right information from this reputable forum, "Cite HR," so that any individual can trust the information given in the forum.

Regards

As I have analyzed, the agreement is made at the time of appointment by the employer. At that time, the employee agrees to the terms and conditions because they are totally unaware of the company environment. After some time, the employee starts understanding the company policy, both the positive and negative impacts imposed on the employee. If the bond is 100% valid, then every employer will follow the same, and subsequently, they may not adhere to any statutory requirements, leading to a zero attrition rate.

You can submit an application regarding your issue. If the HR and concerned department do not take appropriate action, you can resign. As per the appointment letter, the notice period mentioned must be followed.

Best regards,

Lakhan Trivedi
Sr. HR Manager/HRD
[Phone Number Removed For Privacy Reasons]

Legality of Employment Bonds

A bond is illegal. A company can only take action when an employer and employee prepare an agreement (on stamp paper) with the understanding that the company will provide training to the employee, and the employee has to work for a certain number of years. The agreement also states the cost of training incurred by the company and the amount the employee has to pay if they wish to terminate the employment before the said period. Only in such instances can the company take legal action against the employee.

Any other bond is illegal as no company can legally bind you. Such documents have no value. The only important document is the Appointment Letter.

Regards,
RAGA

Dear All,

Two employees have resigned from the company, but HR has forcibly taken the bond amount from them. In case the employees are not ready to give the bond amount, HR is not issuing the relieving letter and service certificate. After several discussions with HR, they insist on one thing: the certificate and clearance letter will only be given after the submission of the bond amount. The company we are going to join requires the above-mentioned documents. We have also informed HR that, as per the bond, they have not fulfilled the training, no software is purchased for our stream, and most of the software is pirated.

Please suggest.

Regards,
Poonam

Dear All,

Two employees have resigned from the company, but HR has forcibly taken the bond amount from them. If the employees are unwilling to provide the bond amount, HR is withholding the relieving letter and service certificate.

Despite numerous discussions with HR, they insist that the certificate and clearance letter will only be issued after the bond amount is submitted. However, the new company we are set to join requires these documents.

We have informed HR that, as per the bond agreement, they have not fulfilled their obligations, including training and software procurement for our department. Additionally, many of the software programs in use are pirated.

Please advise.

Regards,
Poonam