Legality Of Service Bond In Private Organisation - DOC Download

Dear all,
I had joined in a company as HR Trainee obliged to work for three years by signing an legal agreement(Bond) along with surety who is a government servant, after working for 16 months due to personal problems and for better opportunities i left the company, now the company is asking to pay an amount of Rs.75,000/- stating that bond Violation. They stopped my F&F, PF and relieving.
Key points in the agreement:
1.1st year of service as Trainee, 2nd year probation, 3rd year confirmation.
2. Relationship between company and employer is that of "teacher and student” and not master and servant.
3. Stating that “Company incurred lot of money for training” which is not true and there is no training given as such.
Now company executives are threatening me that they will file case in court if i didn’t pay the money.
I request you all to help me out from this problem by giving your valuable suggestions.
Thanks and regard
Babu

Dear Lokesh,
If you have signed a bond at the time of joining, then you have no other way, you have to follow it.
If you are not following it, it's a breach of contract. And the company has thr right to take actions against you.
Generally a company also sign up bond amount, i.e. if you do not want to continue the service under any circumstances you have to pay back the amount. Check your bond paper for such clause.
If the new ooportunity is good, pay back the amount to your current organsiation and carry on.
For any clarification feel free to write or discuss.

Dear Sir,
Thank you very much for your valuable suggestion.
The bond has been executed at the time of joining itself.
In the name of giving on the job training, i was asked to execute bond for 3 yrs which is not true and i was handed over core job responsibilities right from the beginning.
In such situation how can i pay such huge amount which is twice the amount i received in the form of monthly salary.
Pls suggest.
Thanks & Rgds,
Babu.M

Dear Mr. Babu,
If you have a copy of Bond please read thorughly the agreement literature first. If you can prove your self that they have not trained you and given core job responsibility then you can fight with them legally. Consult good legal advisor in this regard and go as per his guidelines. In any case if your bond is for one year and they asked for three years you can win the case. But it will take time and gives a negetive impact on your career. It is better to consult the higher officials in your office and request them to relieve you by telling your case. If they agreed it is more better.
With best regards,
Suneel

Dear Lokesh,
Before anything that I could suggest want to know few queries - Firstly, Did you resign yourself properly with your organization?
- Did your employer agree to your resignation?
- Have you served your notice period as per their stipulated time period?
- Your HR Dept. is the ultimate entry and exit, so have you explained your situation for leaving?
Although, as apart from all these, suggested earlier by our able seniors, please go through the contract once again. I agree that paying such a huge amount may be difficult and there is always a fair chance to speak to the concerned than to plunk in despair.

After taking in to consideration of the whole discussion made above,

I would like to add by asking you,

1) this question may look silly, but yes important, were you major while signing the agreement?

2) Do you have the access to the company policy??

3) Is there any specifications mentioned about the training in the agreement??

4) Have they mentioned the amount of compensation...... or the best is, may you send me the copy of your agreement, and the related documents, like appointment letter, stipend paid slips etc etc, what ever the documents you have and u feel it important to [Login to view] , and lets see what may be done with it.......

And, its kinds difficult to ask the specific question which helps you without the documents...... so you may send it the given email ID if you feel it necessary..........this looks like the issue of apprenticeship, and may find the legal rescue if any, but in any case, agreement is important to be looked in to..... but nothing to worry much about it......

Hello Lokesh babu,

I am with Prasenjit Mitra.

When you signed the Bond, you ought to follow it BOTH in spirit & deed.

You mention that you left 'due to personal problems and for better opportunities'--which of the two is the TRUE REASON? When you knew that you had a Bond, what made you think of even applying for a new job WITHOUT giving any thought to the Bond--the consequences thereof?

Frankly, I think you took things for granted--that the company wouldn't really bother. Or, that you could get away with it.

You seem to be stressing on 'no training given as such', by saying: 'was handed over core job responsibilities right from the beginning'. Could you pl explain what YOU mean by "core job responsibilities"?

You also mention that you joined as a Trainee, which means that there definitely MUST HAVE BEEN someone mentoring/training/guiding you even in your 'core job responsibilities'. Were you just assigned job responsibilities & targets right from day-1 WITHOUT any support mechanism in-place? I am sure NOT.

Being a HR person yourself, I do hope you know & realize that MANY companies [usually SMEs] would rather prefer to train/guide freshers WHILE-AT-JOB rather than have structured/separate/formal Training sessions--for multiple reasons, some of which are to do with economics. Hope you get the point.

Rgds,

TS

Dear all,
In india bond is illegal. It is only one sided. As per law the employer cannot enforce Bond. I various decisions the various high courts and supreme courts has held that the bond system is violation of the fundamental rights under article 19 of the constitution of india. No employer has a right to insist on the employee to serve the company against the wish of the employee. The employee has a right to quit the employment at any time when he wants. Its up to him to decide when and till what day he want to work. The only thing is that due notice should be given to the employer.

Dear Mehrunisa,
Kindly cite some court cases in support from either high court in India, that will be helpful for this gentleman. I am with you that bonded labor of bond is against fundamental rights under article 19 of the constitution of India.
S K Nain
Head HR
09824916886

Dear Lokesh Babu
The Bond you have singed is not enforceable by law because it is not legal and it is against fundamental right. So don't pay the money to the employer. If your employer file any case against you face it legally with the help of any advocate with courage and stamina.
As far as withdrawal of PF contribution is concerned you can dircetly file the withdrawal FORM to the PF office after obtaining your signature from the Bank Manager where your account is being operated.