Fresher - Stuck With An Employee Bond! - PDF Download

Hi sir,

I am a fresher and I got a job through college campus recruitment. The company took a 2-year bond paper from us. I am in a probationary period of 2 months. If I leave the company, the bond paper mentions that I have to pay Rs 1 lakh. Now, I am facing health problems due to the night shift, and I have informed everyone in our company. Unfortunately, they didn't consider my health issue, and now I want to leave the company. I am very scared for my future and my education. Please guide me, sir. When I mentioned my health issue, they told me to take legal action. Currently, I am continuing my training.

Regards,
Pinku

Hey Pinku,

I am really sorry to hear about this. To be completely honest, I could have faced the same problem had I not taken a decision to which all my professors were upset with me. During the recession year, I was selected to a company through campus recruitment. They also had a bond to be signed. I was even ready for it because the company was a brand to be with. However, fortunately before I could take up the final offer, I had a chance to work with my superior for two months on a trainee basis. After working for two months with her, I realized I can't go any further and declined the lucrative offer. It took me some time, but finally I got my dream job.

Anyways, about your problem here, I am not very sure if you can do this, but please find attached the document which I found just minutes ago on CiteHR thread only. It's on 'Bond of Employment'.

I really wish I could help more, but sorry I am not experienced enough to advise further. But I am sure our mentors and experts can help you out.

Wish you luck. Take care.

Hey Pinku,

The article highlights the fact that companies should not use any bonds or such contracts anymore because it violates the fundamental rights of citizens to pursue better employment opportunities. It has cited case laws wherein employers have sued their ex-employees for breaking the terms of employment. The court in such cases waives the contract and states that 'Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void,' meaning the agreement is not legally binding on the employee if it stops him/her from pursuing a better employment opportunity.

I think you can seek help from your mentors at college or any known expert in society who is in the law profession. Have them read your bond papers and understand the legal language. It will be challenging, but you need to be patient and perseverant.

All the Best of Luck!!!

Thank you, Chadan. They told me to take legal action if you leave the company. I don't know what the legal action should be. I also haven't completed my training period. Is it the right time to leave the company?

Hey Pinku,

To know what legal action can be taken and how much the chance for the law decision to be in your favor, you shall have to consult a lawyer or a professional who can help you with this as it shall depend on your bond clauses too.

Whether you complete your training period or not, that's not important. What's important is whether you are ready for a new job or not. You might have an offer in hand, which you can join, or else you might have to look for a new job while you remain unemployed. So, are you ready to be unemployed for some time until you find a decent job for yourself? Moreover, make sure next time you don't get into hassles of bonds or contracts. Also, if the new job has any bond, understand the clauses properly before signing on the dotted line.

Wish you luck!!!

The reason companies ask employees to get into contracts (bonds) is that they invest money and time in employee training and seek a return. However, in your case, they have not trained you much, as you have only spent 2 months in this company and have not completed your training. If they threaten legal action against you, challenge them to prove their investment in you, which justifies the amount they are requesting – something that would be impossible in your case.

The restrictions a contract imposes must be valid; if they are not, then the contract is not valid.

Moreover, in several cases, Indian courts have ruled that bonds signed by employees, as per Section 27 of the Indian Contract Act, which states: "Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void." This means you should not worry about leaving this company; they cannot hold you as it would violate your freedom.

If you have any further problems, feel free to ask.

One more thing, Pinku. Read your agreements and contracts thoroughly and try to find out if there is anything that is not mentioned but you are asked to do. For instance, were you aware of the fact that you will be doing night shifts? How long have you been working night shifts? Is the time mentioned (hours) to serve accurate, and how much are you actually serving? Identifying these voids from the employer's side in the contract will also help you. You mentioned your probation period is 2 months, so how long have you actually been working here?

Hi Vandana,

Thanks a lot. They mention only the night shift, but they call me at 4:00 AM and 6:30 AM on most days according to their choice. In the bond paper, there is no mention of working on Sundays or Saturdays, but they still call me on those days as well. Some days back, I was suffering due to a health issue, but they didn't consider my health problem.

I just want to know if this company's bond will create problems in my future or not. This article shows what? Are the company bonds legal or not? Please advise me.

Regards,

Lagnajit Dash

Dear Pinku,

No employer, just by getting the bond signed, can stop or penalize you from quitting or changing a job, except in the case that they have invested in your training. If a company takes any legal action, it can only penalize you if they can prove that they have made an investment in training you. Even if they can prove their investment, the maximum amount recoverable is the amount spent on training plus interest on it.

In your case, correct me if I am wrong in understanding the situation, I feel that no investment has been made in any sort of training. So don't worry, pay attention to your health. A job can be taken up again once you regain your health, but if health is neglected, it will be difficult to do the job.

To be more cautious before making any decisions, you can consult a professional in law. Let me know your decision and outcome. All the best.

Regards, Anu

I just mentioned in a previous comment of mine that, although according to Section 27 of the Indian Contract Act, employment bonds are void as they restrict individuals from exercising a lawful profession, contracts do impose some restrictions. However, these restrictions should be reasonable; if they are not valid, the contract itself dissolves. Today, observing the attrition problem, companies are creating non-reasonable policies and contracts to retain employees, who often comply due to unawareness. For example, if they ask you to work on a Sunday, do they provide complimentary time off in return (provided you have marked your attendance on Sundays as proof)? If not, inform your boss that working more than 48 hours a week violates the law (the maximum weekly working hours being 48 hours and 9 hours per day, excluding break time).

If a company threatens legal action, it may be merely to intimidate you, especially if you are a fresher and inexperienced. Don't worry; you can leave, especially since you haven't completed your training, so the company hasn't invested much in you and may be exploiting you (e.g., calling you to work on Sundays or when you are ill).

An essential question to consider is: when you complained about health problems, did you apply for leave (which was rejected) or send a written application (without a response)? These details are crucial (remember, always make requests and complaints in writing to prove authenticity in the future).

Could you please specify the state you work in? Is it a manufacturing unit or a service-oriented one? Also, how many leaves are granted to you according to the company's leave policy? Let's assess how well your company adheres to its rules.

Moreover, rest assured that you can leave your company; they won't be able to take any adverse action against you.

Hi Anu,

I am currently in the training period, having just completed two months out of a total of three. During this training period, I am with other freshers, and we are not receiving individual training. I am considering leaving this company. I am unsure about the legality of the bond in an IT company and whether they can send a notice to those who leave. Can you please explain the concepts of a single-side and two-side bond to me?

Thank you.

Dear Vandana,

I sent an email to my manager and team leader regarding my health problem. I thought they would be concerned about my health, but they weren't. Instead, they suggested taking legal action and created some issues due to my health problem. I submitted my medical certificate to the team leader and also informed HR.

This is a type of IT-enabled service company.

Regards,
Lagnajit Dash

Hi Anu/Vandana,

Now, I am a student. I have not completed my education, but I got a job in this company. Can the company take legal action against me? In the case of court proceedings, what will be their suggestion?

Thanks,
Pinku

Re: Employee Bond.

At outset, stop worrying about any sort of bond unless your principal or employer has proof of investment in your training. Engaging employees without such monetary investment is tantamount to the issue of bonded labor, which should be eradicated. This culture of retaining good manpower is a result of Indian globalization. Companies' HRs are also aware of this, and if there is a concern, maintaining a cordial relationship will prevent any problems from arising.

Tharani ML
Sr Member

Dear Sir,

Please find herewith the High Court judgment copy regarding the Bond. It will help you with this problem.

Thank you.

Yours respectively,
Ashish

Hi,

You can show a medical emergency, and the bond will stand canceled. However, this should be documented on paper.

Regards,
Shweta

Employment bonds are not valid legally. Go ahead; nothing will happen if you require complete details about employment bonds. Read T.K. Madhu, HR Manager's quote on CiteHR site. You will get all the details.

Hello everyone,

As per Pinku's query, I want to know that the bond was signed only at night, but they are also calling him in the morning and on weekdays off. Pinku also signed a bond, so if he refuses to come on weekends or in the morning, then mostly they put a workload during work hours and try to harass. What steps can we take in this situation? Is there any legal action that can be pursued?

Please reply.

Is any of our academic or progress report with the company. If you have submitted any certificate, then it will be very difficult for you to leave. But if you have not, then just leave the company they can't do anything.

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Is any of our academic or progress reports with the company? If you have submitted any certificates, then it will be very difficult for you to leave. But if you have not, then just leave the company; they can't do anything.

Health is of utmost importance, do not lose it.

Tell your employers that you have also consulted legal consultants, and there are Supreme Court judgments against such unlawful bonds.

The maximum risk I think you face is not getting an experience/relieving letter and your current employer contacting your future employer to ruin your career (just to satisfy their egos). So do not, at any cost, let anyone know where you are joining next. If you have your PF dues at the old organization - just let it go or keep silent until you have made a rapport in the next organization.

If you are bold enough, tell them that if they do not relieve you in a peaceful way, you shall put up the whole matter with their names and the organization name on all social sites and employer review sites. You will let all employment consultants know of their behavior and may even write to the media about their coercive tactics.

These bonds are meant for people who do not know the law. Do invest in consulting a good lawyer if you want to feel more confident.

All the best.

Dear Pinku,

I am an entrepreneur, running an MNC. If you were my employee, I would not be interested in retaining an employee like you who has not even completed six months, especially since I have made no or negligible investment in you. However, I should not allow a message to be conveyed to all my employees stating that "Leaving a person without completing their tenure will not be penalized."

In your case, given your medical background, it would be reasonable to allow you to leave as you are no longer beneficial to the company. Lastly, the Constitution of India states that "No man can be ruled by corporate under any situation/circumstances." Therefore, even if legal action is taken, you would likely win the case in the end.

I hope this answers your question.

Your well-wisher,

RV

Hi, I am Vinay seeking a job. Can anyone provide me with information about IT and Non-IT Recruiters? Kindly provide me with the information soon. Please share details about IT and Non-IT Recruiters.

Thanks and Regards in Advance.

Dear Pinku,

I understand that you have signed an agreement for training. They won't accept your health conditions in any of the shifts. Because in IT and BPO, the organizations are running on a 24/7 basis, and it is well understood that working in the night shift also comes into the picture. Before accepting the offer letter, this should have been clarified. Now, it is too late to think about this issue.

Once you have signed an agreement, you have to follow the legal stipulations or pay the training cost for 2 months up to the last working day after submitting resignation. If it is a professional organization, they will collect the money only for this.

If you breach the contract, they will initiate legal action by sending an initial notice to you. Then a third-party investigation will be conducted for your new employment. A legal notice will also be sent to the new employer, creating an embarrassing situation for you. You will then have to contact your legal advisor or respond to the legal notice issued by the employer. You will be in a dilemma whether to proceed further or pay the entire amount to the company. If you are willing to pay the dues through court again, they will charge the entire amount, including their advocate fees and admin fees, which will be much higher than your actual cost.

"Agreement in restraint of trade void.- Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void," which means don't worry; you can leave this company. They can't hold you because this violates your freedom.

According to the definition, it is justifiable. You need not worry about the contract. Why is the company taking legal action against erring employees if they agree with this? Professional organizations will not hold an employee irrespective of their tenure. Major auto ancillary organizations in Chennai follow this contract for the training period, regular employment contractual period for every 4 years, and a bond for 5 years visiting abroad as well.

Before accepting a job offer, we must thoroughly analyze the pros and cons of the employer's formalities.

Therefore, you are requested to pay the training cost and relax from the mental agony.

Looking forward to seeing your decision, please.

Good luck,

Rekhabhanu

9962924458

Agreement in restraint of trade void.- Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void, which means don't worry; you can leave this company they can't hold you because this is a violation of your freedom.