Should I Accept a Job with a 3-Year Bond Near My Hometown? Seeking Advice!

Hello Seniors, I'm currently working in a small software company. I got an offer from another company. They are offering ₹25,000 per month (₹3 lakhs per annum). However, they want to put me under a bond for about 3 years. If I break the bond, I will have to pay them ₹2.5 lakhs. The company is located in my native area. I actually hate the idea of signing a bond, but one good thing is that the company is near my home. I am feeling confused, so I can't make a decision. Please guide me.

Every job opportunity has its merits and demerits. Weigh the options in favor of you in discussions with your family members and accordingly make a decision. If you consistently perform well, the company may waive the bond (a possibility) if you want to leave them.

Regards,
Pon

Hi Balraj, Pon has genuinely advised you. The term of 3 years is really too much. Enquire from the company about the following:

1. Term of performance review and the period of probation.
2. From where the counting will start for these three years (whether from joining or after the completion of the probation period).
3. What will happen if the company is not willing to continue the employment with you at any moment in these three years?
4. Purpose of this agreement: Retain for three years or recover any specific training cost incurred during these three years?
5. What about the performance review process and is there any percentage range for the performers?

Thank you.

Considerations Before Accepting a Job Offer

Adding to what Pon and Anurag Jain have advised, I would suggest you also focus on the following aspects before you make the final decision.

• To reiterate what Pon mentioned, every job opportunity has merits and demerits. You have realized the merits (proximity to your home, and the salary seems good for your experience level). From your posting, there seems to be only one demerit—the bond.

• Since you mentioned it's a software company, check out the domain(s) they are involved in and the technologies they are using. Such factors will matter when you want to judge the future prospects of the company—indirectly meaning your own progress in this company. If you know anyone there, get information about the type of environment within the company. Quite often (especially with software companies), what you see externally will be different from the internal working culture. If you read through many threads in CiteHR itself, you will know what I mean.

• You mentioned, "Actually, I hate to sign a bond." Please understand that a bond is not inherently bad (I am not touching the legal aspect, mind you). It all depends on what you are getting out of the deal. If you feel that your career will move on the track you wanted by signing the bond, I don't see why you should hesitate to sign. After all, the company too has to protect its interests—especially since it's located in an out-of-city area, they could have experienced high levels of attrition. But let this not affect your decision, which should be based on your interests.

• Pon has mentioned, "If you are in consistent performance, the company may waive off the bond (a probability) if you want to leave them." Frankly, generally in the software industry, this works the other way around. No company will lose one who is performing—they go out of their way to offer better salary and facilities, to the extent they can.

All the best.

Regards,
TS

As Pon advised, just write down the pros (+) and cons (-) associated with that job. If you discover more advantages, then go ahead; you can join. If not, leave the job and search for another option. All the best. 

I have received an offer from Bajaj Allianz. This is a major insurance company in India. Has anyone heard about the IT department of this company? The only issue for me is the bond. Other than that, everything is not a problem. The salary is as per my expectations.

Just make a list of PLUS & MINUS points side-by-side. Once you are through, you don't even have to think further, since your decision will be in black & white in front of you. It REALLY WORKS — at least it did for me when I used to be in any confusion — not just career issues but even personal issues where the choice — WHEN THINKING THROUGH THE HEAD — 'seemed' to be between the Devil & the Deep Sea. Try it once. All the Best.

Regards,
TS

Hello pon1965, Actually, I opened the "How to get payslip" thread for my current working company. Now, I have received an offer from another company. In this new opportunity, they are asking for a bond. Thank you Regards

Legality of Service Bonds

First of all, can anyone enlighten me about the legality of a bond? Is a service bond a legally binding contract, and do labor laws permit it?

Employing Trainee Employees

My second question is specific to my requirement. I want to employ trainee employees as per industry practice. Freshers are employed as trainees, and later, if their performance and skills grow to meet the job's expectations, they will be on the regular muster roll. Such on-the-job training costs a lot for employers as they have to spend man-hours, provide facilities to work, and give emoluments equal to the minimum wage with PF/ESI benefits. Can a service bond of 1-2 years or similar terms in the appointment letter itself be made obligatory to prevent the successful trainee from running away? If yes, then in the case of a breach of the bond, can damages be recovered from the defaulting employee?

Regards,
Janak Soni

I am accepting the seniors. Do one thing: first, leave the bond issue and note down the positive and negative points (SWOT Analysis) in joining/not joining that company. Then, you may know if it is good or bad. If it is bad, leave it. If it is good, then think about the bond. For this, analyze like this:

- Know about the organization by talking with working employees.
- Think: do you want to leave that organization before 3 years, as it is in your native place?
- Think: is there any better scope for you in another organization?

See all these and make a decision. Working a minimum of 2 years in one organization is good for any employee.