Feeling Stuck with a Job Bond? What Should I Consider Before Signing?

Seeking Advice on Bond of Service

I have been offered a job in an Oil & Gas Service Company as a 'Trainee'. The bond of service is given, but I have not signed it yet, so I need advice from you. According to this bond, I will have to work with this small company for a long time at a negligible pay for 4 years, with a bond amount as heavy as 5 Lacs. I don't have any option other than joining it. So, what precautions should I take before signing this bond?

Bond of Service

I, Mr. Candidate's Name, S/o Father Name, R/o Residence Address, appointed as Designation on LOA, hereinafter called "the Executor" (which expression includes my heirs, executors, administrators, and assigns), in favor of Shiv-Vani Oil & Gas Exploration Services Ltd., having its registered office at Tower 1, 5th Floor, NBCC Plaza, Sector – V, Pushp Vihar, Saket, New Delhi 110 017, and having offices/detachments in different parts of the country.

Regards

Legal Perspective on Employment Bonds

Being an active lawyer for the past 22 years, I can tell you that no company can hold an employee to work against their will in this country. Having said that, if a company incurs expenses for your training/visa, etc., you are required to pay the amount to break even in case you depart before your agreed-upon time period.

You have the right to obtain an itemized list of expenses incurred during your training period. This is usually always less than the bond amount. If the company denies you this list and your relieving letter, you can take them to court.

We recently worked on a case involving an employee with a 2 lakh 2-year bond with L&T. L&T refused to provide a relieving letter to the employee after 1 year of service. When the employee requested the expenses incurred, L&T instead provided the relieving letter without any issue.

I would advise all employees who wish to break their bonds not to pay the bond amount but to request the exact expenses incurred by the company and pay that amount to obtain the relieving letter.

So don't worry. Go ahead and sign the bond. When it comes time to resign, make sure you pay all the expenses (such as training) incurred by the company (in addition to your salary).

Regards,
Dr. TSG