Stuck in a Job Bond: What Are the Legal Risks of Leaving Without Training?

I went for a job as a Software Developer Trainee on an agreement of 2 years, serving that company. Failing to fulfill this, I have to pay two lakhs to the company. However, after joining, I found that the company is not providing any training. Instead, they sent me to the client to make them understand an already developed software. My salary is 5,000 per month. The company has also stopped my salary for the last two months. I have been working for the company for the last 4 months. What will be the legal implications if I leave the job now?

Please help!

With regards,
Putai

Can you go back and refer to your appointment letter and provide the exact words/sentences on the following:

1. Separation Policy
2. Training Policy
3. Probation Period
4. Confirmation Clause
5. Salary Details
6. Increment Details

Is there anything about extending the probation period if the performance is not found to be up to the mark? If yes, what are the terms and conditions for it, and how long can the probation be extended?

Does the two-year service contract that you signed cover your probation period, or does it start from the day of your confirmation? If you were brought on board on probation, have you been given a confirmation letter or an extension of the probation period?

Also, check the service agreement for the following:

1. Date of the bond
2. When will the two years of your bond start? (from your joining date or after you get confirmed in the company)
3. The bond amount that they have mentioned, what is the clause for paying that? I mean, are you to pay that amount only if you resign or also if they terminate you?
4. Does the bond or the appointment letter mention any training to be implemented at any point in time?

Kindly provide the information as mentioned above so that we can understand the problem better and help you.

Thanks for your feedback, Ankita. The words in the bond paper are as follows:

Indemnity Bond

Articles of agreement made this January date between the company name and the name of the employee and the name of the employee's father. Whereas, it has been agreed that the employee will serve the company for a period of 24 months effective from January as a trainee or as redesignated as per performance appraisal from time to time.

NOW these presents witnessed and the parties hereto agree as follows:

1. The employee will serve the employer for a minimum period of 24 months from January subject to determination hereinafter provided.

2. The employee shall receive the remuneration for his service during the period of 24 months as mentioned in the appointment letter or any amendment thereafter as per his performance appraisal.

3. If the work of the employee during the period of 24 months is not satisfactory to the employer or if such work shall be detrimental or prejudicial to the interest of the employer, the employer shall be entitled to terminate this agreement by giving the employee two months' notice in writing.

4. A) The employee hereby covenants with the employer that should the employee fail to serve the employer for the continuous period of 24 months as specified in clause 1 thereof, the employee shall pay to the employer a sum of Rs. 200,000 as compensation.

B) If the employee shall, in any respect, fail to perform this agreement or commit any breach of his obligations hereunder, the surety shall indemnify the employer against all losses, damages, and expenses that may be incurred by the employer by reason of any default on the part of the employee in performing and observing any of the terms and conditions of this agreement.

C) The liability of the surety shall not at any time exceed a sum of Rs. 200,000 with the interest thereon at 12% per annum up to the date of the payment.

Signature of the employer:

Signature of the employee:

Signature of the surety (Father):

Please let me know if you need further assistance.

Legal Implications of Leaving a Job Without Training or Payment

First, the agreement has no validity where no training has been provided. That has been held by the courts many times.

Secondly, where the company has failed to pay you on time (and especially where it has not paid for 2 months), you are under no obligation to work there, irrespective of what bond you may have signed.

Regards,

In addition to Saswata Sir's advice, I would like you to initiate the process before they do so.

In actual terms, a service bond is viable in India to the extent of the training cost incurred on the employee by the employer. There are no specifications of training given in the bond that you've signed. They have not even mentioned that they would provide you training.

You mentioned in your next post about a 6-month training period and ___ months of probation period. Perhaps you missed the number, or should I assume the normal 6 months' probation? From your post, I deduce that you have joined the company in January this year. So, basically, the bond starts from your joining date.

Secondly, I want you to check your appointment letter for the termination clause as the service agreement details are not mentioned. Ideally, in the probation period, there is no need to serve a notice period, or if a notice period is required, it ranges from 7 to 15 days' time. Your service agreement mentions a 2-month notice. However, such long notices are usually meant for confirmed employees. So, check if there are any specifications in your appointment letter.

In addition, you can write the following email/letter to the concerned authority regarding the agreement you have signed:

As per clause 2 of the service agreement that we have signed on DATE, I am to receive the remuneration for the service during the period as mentioned in my appointment letter. In my appointment letter, I have been promised a gross monthly salary of Rs. _____ per month. However, I would like to bring to your notice that for the past two months, I have not received my salary for reasons best known to the management.

This letter is to inform you that I have waited for two months to receive my salary check, and it has been futile. Hence, I hereby state that unless my previous salary is processed, I will not be in a position to serve you. Kindly acknowledge the receipt of this email/letter, stating the earliest date by which my salary for the said tenure will be processed.

We understand that the bond is questionable and not viable. However, regardless of this clause in the agreement, every person who has rendered any service is liable to receive payment for that service.

To cite an example...

Once my TV was not working properly, and we called in many technicians, but they didn't know what to do. One person walked in, checked, and politely said, "Sir, you do not need to give the TV to any technicians or workshop. I'll repair it here itself in 5 minutes. But I will charge you 200 Rs." (This happened some 25 odd years back when 200 Rs had its own value.)

My dad was happy that now he's satisfied that the technicians won't change the parts as he doesn't need to take it anywhere from here. So, he agreed. All that he did was tighten a screw, and the TV worked. It was just a simple thing to do, but he charged a lot. Now, are we to tell him that tightening a screw doesn't cost that much? It wasn't about tightening that screw... It was about applying his knowledge and providing a service quicker than anyone else...

And to be frank, this person earned so much respect. To date, he's the only one allowed to repair my TV, and we don't go to the market to check what others charge as we trust his service.

Please let me know if you need any further assistance.

Kind Regards

Now a new problem has arisen as the company has sent me a letter asking me to join duty within 3 days; otherwise, they will take action against me. What action can they take? Secondly, until now, they have not paid my salary.

With regards,
Putai

Had you sent an email as I suggested, stating that you would not be in a position to join unless the salary is processed? Did they respond to that email with a reply, acknowledgment, or call to negotiate, etc.? Please provide details.