Forced to Sign a Bond, Quit After 6 Days: How Do I Handle a Legal Notice for 50,000?

I am an experienced software engineer and was forced to sign a bond of 1.5 years while joining the company. I left the company after 6 days as there were only rules and regulations. They did not provide any training or any salary, but they are asking me to pay 50,000 as per the bond. They have sent a legal notice. What should I do? I don't have an interest in working there or paying 50,000. Can anyone suggest something?

Yes, I feel it's my fault. Do you mean I have to pay the full amount? They did not spend a single paisa on me, yet I need to pay ₹50,000? I worked for 6 days. Once they told me that I need to work 12 hours, but it's not possible for me as I need to travel to my room. They are not ready to listen to me; they only think about work, not my problem.

Were you under contract with the company on legal stamped paper? Have you read the contract before signing it?

Yes, it's on stamp paper, and I didn't read it as they asked me to sign in a hurry. After searching on the internet, I found the following lines... Is this true?

Validity of Service and Training Bonds

If the bond is a service agreement/contract bond (without any training investment on the employee), then that bond is invalid and does not stand in the court of law. The employee need not worry about breaking it. If the bond is a training bond, then it may stand valid in the court of law, for which we need to examine the content of the bond clauses. In any case, bonded labor is now banned in India, which means no employer can keep any employee under any form of bond/agreement that is not valid in the court of law. Nowadays, employers use this tactic to create a psychological effect on employees; however, such bonds hold no value.

This individual should seek advice from a lawyer and send a formal explanation notice to their company if all aspects align with legality.

You have written that you were forced to sign, which I think no one will accept because you are an experienced person. Making a judgment about the company within 6 days, I think you are making a decision too quickly because unless you stay there for a couple of months, you cannot put blame on the company. As far as rules and regulations are concerned, it depends on the person's perspective because every company establishes rules and regulations for the betterment of the company and the system.

You have also mentioned the salary. Now, the question arises after accepting the offer, stating that they are paying less salary, which is not justified to me. I suggest you stay there for 1.5 years and then decide for the rest of the years.

Best of luck.

Regards,
Arun J.

After joining the company, I discovered that they are taking every employee's original mark cards and imposing a 1.5-year bond. Some engineering students are receiving ₹6000 per month, but I did not submit my mark cards.

Did you receive a legal notice via registered AD or CPC? Did you accept it? What was written in the notice?

Don't worry. You don't have to pay anything. However, next time, think carefully before joining.

Regards,
Adv. Apurva Singh

All the above comments are correct individually, whether they are right or not. However, signing any letter requires some sense. If a company sends a legal notice, one must respect the law. The decision may be in favor of the employee or not, but it is an unnecessary problem that could hinder one's career. Companies implement bonds because many employees lack credibility and frequently change jobs, which is why the company enforces bonds. It is now up to the contents of the bond to be reviewed in order to determine the next steps.

I understand that under the circumstances, you must have signed the bond. Of course, you cannot say you were forced to sign it, but you also need not take that defense. The bond you have signed needs to be approved by a court of law under the Contract Act. Besides, unfair labor/employee practice is also an issue here. We have dealt with such situations several times for our clients and have shown the employer where they stand in the eyes of the law. They cannot assume that just because they are a company and you are an individual, you will not be able to match their might and cannot fight them if challenged, and meekly give up ₹50,000; I don't think so. I would first retaliate with a harassment (legal) notice against them and then wait for their reply. It's only then we know how serious they are about extracting that money from you. Even an average lawyer will make them spend at least half of that amount to begin with. If you need any help in Bangalore, do let me know. Do not fret; you have not committed a crime. The bond is litigable if need be, and you will succeed for sure.

I don't think there is anything to worry about right now. If the company follows up with you, send a legal reply to them asking for a copy of the contract signed by you so that you can look into the finer details, including working hours and facilities, etc.

If they had asked you to work for 12 hours and the same is mentioned in the contract, they will not furnish the copy of the contract as this can be challenged.

Legality of Employment Bonds in India

Generally, such types of bonds are not legally valid in India, as they are executed under coercion. Moreover, they violate Section 27 of the Contract Act, being an agreement in restraint of profession. It is also a violation of Article 19 of our Constitution, which guarantees the freedom to engage in any trade, business, or practice any profession in India.

However, if the bond is executed to recover any actual loss suffered by your employer, then it can be recovered, for example, to recover actual training expenses incurred for your training abroad. Under no circumstances should you agree to pay any amount from your own pocket. Let them recover it through court by proving the actual loss they suffered.

If they do not accept your resignation or settle your dues, please file a writ against them before the concerned High Court.

Just contact the nearest Labour Welfare Office and send a written notice regarding mental harassment. You can provide reasons for working late and also mention that you signed the agreement without reading it and were unaware of its contents.

Later review all opinions, I would like to inform you that no one can be pressured to work under such scenarios. I am from Pakistan and currently working as an HR Manager in a reputable firm. I just want to inform you that as per 'International Labor Law,' no one has the right to bind anyone. In Pakistan, when anybody is hired in a government organization, they have to sign such legal bond papers, but if they don't want to work, no one can bind them.

Advice

You can take a medical certificate against that company, stating that you are not able to work under such scenarios and that your mental abilities don't support or match with their organizational structure.

Advice

A colleague's leg-pulling environment in that company is badly affecting your physical and mental health in just six days. I don't think anyone will agree to hire or pressure such an employee after receiving such arguments.

Regards,
Tauseef Ahmad

The important word you have mentioned is "Force" - how do you justify that? Once you justify that and if it is accepted legally, you are relieved of your obligations. For more accuracy, I shall review the agreement and consider further.

Signing a document without reading it first is the greatest mistake any inexperienced software engineer can make. Nevertheless, while you have not received any salary from the company, you cannot be forced to pay anything to them, especially when they did not provide you with any training. No law court anywhere in the world will enforce that bogus rule and regulation of that company. Relax and think of better things to do.