Feeling Trapped by a 5-Year Service Bond: Can I Leave Due to Stress and Health Issues?

I am working with a private limited (PVT LTD) company. I have signed a bond with the company for 5 years. After working for 1 and 1/2 years, I am not finding it suitable to work for this company due to mental pressure and some illness.

I was sent to the USA for training, against which I signed a bond. I would like to know if I am able to break the service bond in the middle.

Please provide me with the necessary information.

Thank you.

Regards

No, you cannot break the bond without consequences! Ethically, you should not break the bond! It is either the employer's kind nature that you may be released from the bond obligations without consequences, or you have to fulfill the covenants agreed upon by you in the bond if you desire to be released from bond obligations. The only other alternative is to take a chance! Do what you wish to and hope that there will be no consequences, or face the consequences! But if you need advice or suggestions to justify unethical or illegal conduct, I may find it difficult to offer any! In any case, I state that unless you inform the bond conditionalities, my advice or suggestions are likely to be out of focus and may not really help! I hope you get the perspective.

Regards,
Samvedan
November 6, 2011

Thank you for your valuable information. I would like to inform you that it is a one-sided bond. There is nothing written in favor of the employee. Is it applicable as per the Indian constitution?

Thank you.

You may win in a court of law if the company proceeds against you, but kindly reckon with the following contingencies:

1. Just as you win, you could lose also—at least theoretically.

2. The present employer, especially if they lose, may blacklist you, reaching even up to your new employers. Remember that no one likes an employee contesting the employer. (Call it corporate ego, but ultimately, you may be the loser in the game even after winning the case!)

3. Notwithstanding these two factors, to me personally and professionally, I will fall in my own eyes as I will be going back on the word I gave to an employer in good faith. The view that I am adopting now could well have been taken when I joined the present employer! I could have had the bond checked before I signed it, and if the employer refused to provide me with a draft, I would decline joining such an employer where there is evident lack of transparency!

In the ultimate analysis, you are in charge of your life, career, and are bound to face the consequences of the decisions you make along the way!

As a professional, I would still suggest that you either wait out the bonded period OR pay up and keep your record CLEAN!

As you go on in life, you will learn that often your reputation travels faster than you do, and it reaches any place before you do! Think about it, please.

Regards,
Samvedan

November 6, 2011

I have received an interview call from a company, and I have discussed all the circumstances with them. They have no issue in this case. Everyone wants to maintain a clean record, but not at the cost of damaging their life. What should I do if I become ill due to mental pressure and there is no job security guarantee? What if they decide to terminate me without a valid reason? I lack the evidence to defend myself, so I am seeking advice. Furthermore, regarding the time period, it has been almost 4 years. If something happens to me, will my employer take care of my family? We are often unaware of a company's internal issues when we join but later become acquainted with them. Can you please suggest some ways for me to leave the company?

Thank you

I sympathize with you. However, I have no further advice. Your email seems to be your justification for your decision. I do not need one as I am not and cannot sit in judgment. I have outlined all options and alternatives within my limits. I can only wish you good luck in whatever decision you make!

Regards,
Samvedan

November 7, 2011

First of all, bonds are illegal in India, and hence, an employer cannot file a case against you. They can only send you some threatening letters which you may get scared about but eventually will have to throw in your dustbin.

I agree that you should have thought before signing a five-year bond, but if you are mentally harassed, there is no way you would be able to continue for the next 4 years.

Consider a Transfer or Discuss with HR

Check if you can get a transfer to a department in the same company where you will see better growth or talk to your HR. Try to figure out what exactly the problem is - supervisor, company, hectic work-life balance, etc.

Try to handle the situation in such a way that it's a win-win for both of you. No matter what, if you are blacklisted in a company as an abscondee, there could be chances that your background verification in your forthcoming companies comes out to be "Red."

Consider Future Implications

Remember, you also have to think - what if the company you are heading to is also not worth being around? Will your future employers accept the fact that you were an abscondee in this company?

Resignation Steps

If the above doesn't work and if you have made up your mind to resign, just send a resignation email from your official ID to your supervisor and HR and mark a cc to your personal ID. Keep your last three months' salary slips with you. If possible, take a bonafide letter from your employer which will state your period of employment.

It's always a risk to abscond... but better than being harassed in your current company... All the best...

I have completed my Post Graduate studies and joined a Pvt Ltd company as a PGET for 1 year. When joining, I asked if there was any service bond to be signed, but they verbally told me there was no service bond as they believe in the employee. Even in the appointment order, there is no clause regarding a "service bond," but it is mentioned that "company policy will change from time to time."

After completing 1 year of training, for 2 months, I didn't receive any training completion certificate or confirmation letter. At the end of the 2nd month, HR called me and said my confirmation letter was ready, but I needed to sign a 1-year bond as per the new company policy, which was revised 3 months before the completion of my training. They provided me with a draft copy of the service bond valued at 1 lakh, incurring expenses for pre-testing screening, interviews, training, faculty charges, travel-related training, and other undisclosed expenditures. Despite being in the manufacturing sector, the company did not provide any formal training.

I asked for a breakdown of the 1 lakh value and the revised company policy, but they refused to disclose the information. Additionally, the bond did not mention the revised company policy document number and date. I requested that they include this information, and they are in the process of doing so. They also blocked my salary without any prior notification. Kindly provide me with suggestions on how to handle this situation.

You have two options:

1) If you feel the company is good enough to stick around for a year, don't think too much and just sign the bond.

2) Always remember, no company can take legal action against you and force you to pay Rs. 100,000 if you break the bond and leave the company. It is against labor laws to bind employees with any bond; however, they will not issue you a relieving/experience letter.

3) If you are adamant about not signing the bond, just tell them you are not okay with the same and you will approach the labor department and make some noise. Are more employees facing the same issue? You can then form a group and fight back. However, the company may just terminate you, and you risk losing your job.

Relax, restrictive covenants in employment are not legally enforceable. Consult a good lawyer to exploit the loopholes in the service agreement and then take suitable action.