What Exactly Is a Commitment Letter and How Does It Differ from a Job Bond?

I went for an interview at one company. They asked me if I could sign a one-year bond, according to which, if I leave the job before one year, I will have to pay back 3 months' salary. However, I politely refused and told them that although I plan to work long-term for the company, I can't take the risk and guarantee it because you never know what happens in the future. So, they told me that they will not insist on signing the bond if I am not comfortable, but at least I will have to sign a commitment letter. I agreed at that time. You may find it silly, but I really don't know what a commitment letter is. I assumed it must not have any conditions like a bond. Does a commitment letter have any conditions? I have been selected and will be joining next week, so I still have time to think.

Understanding the Commitment Letter

Please tell me, is signing the commitment letter safe? Does it contain any terms and conditions that, if violated, could lead to actions being taken against you? Or is it simply a formal letter to be signed by the new joiner?

Regards.

Understanding Employment Contracts and Commitment Letters

Such conditions mean it's a contract. If you sign, whether it's called a bond, a commitment letter, or terms and conditions, you are liable. If the conditions do not favor you, approach HR to request changes to some conditions. Without that, you don't think you will sign.

If the company insists on guaranteeing a year of work and it doesn't favor you to do so, it is better not to accept or sign the offer rather than getting involved in a legal dispute later.

Regards,
Godfrey Tom

A good idea is to immediately ask HR for a copy of the commitment letter. Check out what it says. If it has the same terms as a bond, then reject it. Incidentally, a bond for payment of money in case you have not worked for a year is of no value in cases where the company has not spent money in training you. There are lots of court decisions to support that.

That apart, I agree with your contention that signing a bond to work for a certain period is a bad idea. However, if you now decide not to join, what will you do? You will be out of a job.

Expressing Concerns About Employment Bonds

Tell HR that you want to work for the company and believe you would be very useful to them. Of course, any employee will contribute well only if they are happy working for the company. If a person is forced to work, it would be like bonded labor. You could possibly get them to break stones by forcing them (even that is illegal and inhuman), but you cannot get any creative or original work from anybody by forcing them to work for you.

Also, tell HR that commitment letters or bonds make you scared. Express that you wonder why the company is not confident that it would be able to retain its employees just based on the quality of work and work environment. Don't sign any commitment binding yourself to any company.