Strategies for Breaking a Service Bond and Understanding Legal Implications

I am a B.E. computer graduate and I have joined a PSU in August '12 as I wanted a government job. However, after working in the bank, I realized that it is not the place where I can work for a lifetime. Therefore, I want to leave and pursue higher studies. I have signed a service bond of 1.5 lakh for a minimum service period of 3 years. I do not want to pay this amount and intend to leave the bank in June '13. Can you please guide me on how to make this possible?

Dear Shital,

I may not be an expert in this community, but I understand how things work when it comes to breaking a service bond. If it were a private company bond, it would be easier to break by forfeiting a month's salary or through honest negotiation or communication with the respective HR manager.

However, the situation here is government-related, making it a bit more challenging for you to proceed with the bond breakage. I regret to inform you that you would have to pay 1.5 lakh in case you decide to leave before completing the set service years.

As you know, the hiring process in the government sector is not easy for both the employer and the employee. I suggest you reconsider your decision and first discuss with your parents to explore what solutions they can offer.

All the best,
Mohit

Dear Shital,

An organization signs a bond with an individual so that the cost of training is recovered. When any organization hires you, they give you substantial training required so that you could perform the job. This training would involve any kind of training given - classroom, extempore, seminar or lectures or whatever. They might give you technical or soft skill or communication or any training. The bonds are signed and amounts are taken (many times in advance) to discourage individuals from hopping jobs.

However, if you could convince your management that you wish to study further and hence wish to discontinue the service, there may be a chance that they relieve you sooner and perhaps let go of the amount or reduce it. However, it would be completely at the concerned authority's discretion.

Hi Shital,

I am not an expert on this issue, but there could be another way out for your situation. I am aware that PSUs do offer study leaves. Maybe you can go on a study leave. It is basically leave without pay, but at least you won't have to pay the amount of the service bond. This is something you may want to explore further.

Best regards,
Anand

Dear Shital,

I do not agree with your comments that the job you joined is not the place for you. Will you keep on running from the realities throughout your life?

Accept that this is the job you needed most. You can do it. Relax, gather your strength, and work to achieve the targets set by yourself and not by others.

I remember someone I knew resigned from the post of junior teacher from a very reputable school. The principal asked her why she resigned if she had a better offer. She replied that she wanted to do something with her life, and the job as a junior teacher was not her destiny.

The principal replied, "Well, Miss, if you want to do something with your life, stick to one profession, and you will get what you want; otherwise, you will be lost in the mire."

And you know the principal was very right. She stuck to the teaching profession, and by the time she retired, she was among the top four principals in the country.

Please understand, you worked hard to achieve this job where others failed.

It is a matter of only three years. Once the mandatory period is complete, you will not only be at liberty to choose a better job but will have earned experience as well, and maybe you will find yourself satisfied with the progress.

Consider it as an apprenticeship that pays for your day-to-day needs and trains you as well.

Consider what I have tried to convey to you; you will not be sorry in your life. And the story is true.

Dear Shital,

I understand your dilemma and agony. Please try to make a smooth exit without wasting money and time from either side. Here is what I have got to say to the extent of my knowledge:

- Employment and contracts may be a moral binding but not having any legal binding.
- Look for the offer letter/contract entered between you and the company which sometimes mentions the training and its incurred costs.
- Check the list of specialized skills which the company has imparted during the training/employment period.
- Please figure out the amount spent towards training and any losses you may have incurred. Maybe the company expects you to pay for this.

Above all, please consult with a lawyer on legal aspects.

Regards,
Naygam

What a great person you are! Either you have an excellent academic record and can get a better job, or you are just facing the realities of life. Ask your parents and do what they suggest you. No one here will suggest you leave your job just because your heart is not saying yes to it. This is an HR community, and we never suggest you leave a job without any extreme condition.

Regards,
Taashi

Hi, thanks for all suggestions.

I haven't received any training yet, so there is no question that the employer has invested in me, and I haven't given anything in return. I am thinking of changing jobs, as working in a bank is considered a government job, but there is a lot of workload and issues with taking leave. It is not possible for me to stay out of home until late at night, as it often happens in a bank. Additionally, it is a transferable job, which I do not want. I knew this before, but I was under the misconception that women get transferred easily. However, after joining the bank, I realized it is not that easy.

I am considering becoming a professor after completing my master's studies, where I hope to have a peaceful life and a better job. Please suggest how I can leave the bank without paying 1.5 lakh, as this amount is substantial, and I feel it has not been invested in me.

Thank you.

Dear Shital,

I'm sorry to say this... you seem to want a job with a "happy-go-lucky guy" syndrome. After a brief experience in the banking sector, you now wish to transition to the teaching profession where you'll have numerous leaves, holidays after holidays, no accountability, and where time is considered money rather than performance. Am I correct? Nowadays, bank jobs are the least desired among beginners who become aware of the working conditions, especially above the clerical levels. If this is truly what you desire, a bank job may not be suitable for you. You may need to pursue legal recourse after resigning from your current position. The outcome of any potential litigation is uncertain.

All the best.
Kumar S.

Most of the people here are talking about time and money wasted by the employer on employees. The employee has done nothing to get a job, especially a government job where there is so much competition. When I accepted the job, I also didn't think that I would ever consider leaving this job. However, I can compromise with my personal life, especially when I have better options.

Bank work is so easy; you just need to see it once, and you can perform even better than the manager if you are a little bit speedy and accurate. I have not gone through any training. I have not wasted any time of my seniors in teaching me anything. In fact, I work more than my very senior officers.

Anyways, my question is, how can I breach the service bond without paying a big amount of money like 1.5 Lakh?

Efforts of each and every candidate are appreciated by every recruiter.

We never said you didn't put in your efforts to get this job. Whether in the banking industry or any other sector, be it a government job or a private sector job, the competition is always present. Nobody overlooks that, and no one claims that securing the job was easy. However, it would be appreciated if you could consider both perspectives.

Another point to note is, as you mentioned, nobody forced you to accept this job even after going through the procedures. No interviewer will inform you that they spent a day analyzing your CV, followed by hours designing a test and evaluating it, and more hours conducting interviews, hence you are obligated to accept the job regardless of your preferences. The effort and time you put into securing this job were matched by the efforts made to provide you with the opportunity. How do you think the tests are created and assessed? Who conducted your interview? Who is managing the information and communication with you and all others who participated in the process? Have they not compromised their time and effort for this additional responsibility of accommodating you all during this process?

I understand that you are a graduate, and speaking in a childlike manner is not appreciated. To explain further, imagine this scenario: You board a bus and ask the conductor for a ticket to the last stop, which he provides. As you are about to pay, you realize you are on the wrong bus and then proceed to blame the bus and the conductor. You should have inquired before boarding. Similarly, you should have researched the banking industry and its work culture before joining. You are in a difficult situation due to your own mistake, not because of the bank's fault. So, why should the bank suffer for your error?

This is the simplest way to explain the situation.

With reference to the payment of the amount as part of an agreement, one has to consider the reasons and circumstances under which the amount needs to be paid. If the person concerned does not gain any skills or knowledge from the training undergone during employment, then there is no need to pay. Otherwise, one can decide not to pay and face any issues that may arise according to the law.

In a government bond, first, you pay that amount. After that, you approach the court to get your money back. But first, you have to pay.

Dear Shital,

Please check the thread at https://www.citehr.com/437131-legal-...ml#post1979109. In this thread, you will find some ideas regarding your query.

Hello,

All the discussion so far is good as it displays different viewpoints.

To me, the issue is SIMPLE.

Forget the LAW aspect, forget also if the bank has offered real training or not!

Just consider that in life, while you have to be legally right, even if there is no law involved, you have to be morally right!

Consider:

1) The bank offered to employ you IF you agreed to sign a bond (with all conditionalities).

2) You accepted, and because you were found suitable for the job, you were appointed!

Now you have found some issues that suggest you move away. These can be real ones too, but the question is, in civil society, can I evade, avoid, ignore my own word?

If you break the bond, the bank may or may not proceed against you legally or otherwise, and that is NOT the issue. Even if you yet BREAK the bond, do so, so long as you are willing to bear the associated cost! In life, all our actions/omissions carry a "cost" - direct or indirect, immediate or at an unknown time in the future, in one form or another. So long as you are prepared to accept this reality, by all means, go ahead and break the bond!

In any case, as an individual, you have an inherent right to make decisions! Why seek guidance from others when you are willing to bear the associated cost? Or, is it that you psychologically NEED a kind of "approval" from others for whatever you do?

I am sorry if I am found to be harsh, but in my personal opinion (which you need not accept!), your dilemma is a moral dilemma ahead of a legal one. The rest is immaterial.

Make your decision and at least inform of your courage either way!

Best of luck!

Regards,

Samvedan

November 10, 2012

Hi All,

Even if it is a government company, what if the organization has not provided any training and directly assigned him to a task? Many of the government PSUs mention that after 1 year of successful training, you will be made permanent. In reality, training is provided by very few PSUs during the first year. So, what can be the liquidated damages done by the employee as the company didn't provide any training as mentioned in the offer letter.

Regards, Prathap.

Dear Prathap,

Whatever you are doing in the first year of service will be under the supervision of a well-experienced senior person. It is considered as On-The-Job Training. Please do not expect that you will be given only classroom lecture training. If you expect such training, then you cannot perform in your organization.

Best regards,

Believe in yourself. If you are certain that you don't want to do this, there is no point in wasting three years of your life at its prime.

Regarding not paying 1.5 L, talk to your boss about whether he can help you get that waived. Also, speak with a lawyer to determine if the company can force you to pay it, and then make a decision.

Of course, there are examples of people who try and fail, but if you keep trying persistently, you will succeed sooner or later. So, don't be afraid of that.