Stuck in a Bond: How Can I Resign Without Legal Trouble After 2 Years?

I have joined the company by signing a bond for 2 years. To break the bond, I have to pay 1.5 lakh. The bond specifies that 6 months are for training, and I have to serve for 1.5 years after training. During the training period, either the company can terminate me or I can terminate my employment.

Currently, I have completed 23 months, with only 1 month left to complete the 2 years. However, for every 6 months, I have received a letter stating that the training period has been extended. Now, I have received an offer from another company. When I approached HR to be relieved, they mentioned that I have to serve the full 2 years plus a 1-month notice period before they can release me. They stated that leaving before the specified period would lead to legal action, including filing an FIR against me. This situation is frustrating as my current pay is low, and I have not yet become a permanent employee. The new offer is very attractive. Can you advise me on how to proceed? I am willing to forfeit one month's salary if needed.

Do not worry. You can go ahead with your new job. But do the following before proceeding:

1. Write a clear email on your resignation to HR with a copy to your boss and MD if possible. Do not forget to mention that you have completed 2 years and you are also ready to pay notice pay for a month. Wait for a day or two for their reply. If they respond unfavorably or do not reply to your email, keep that email copy for future reference and proceed with your new plan.

2. Your current employer may say that they will not provide a relieving order or experience letter, or they may delay in issuing the same. However, they cannot refuse to pay dues that are owed.

3. Try to speak with your new employer on the phone or through email regarding your joining date. See if they can reconsider the date. If they are not flexible about the joining date, check if they require an experience and relieving letter from your current company. If they do, explain your situation professionally to them.

4. If your new employer is not okay with a delayed joining date and your current employer is not allowing an immediate release, do not worry. Proceed with your plan as no company can threaten an employee with bonds or agreements. Even if they take legal action, you are prepared to pay the notice amount for a month.

Keep your new employer informed about this issue so that you will not face any problems when joining the new company.

Regards,
M. Kannan

Thank you for your suggestions. I have written the bank PO exams and successfully passed them. Training starts next month, and they mentioned in my invitation letter that if I fail to join by the specified date, the job offer will be canceled, and the security deposit will not be refunded. Therefore, I must join on the specified date.

It is not a problem if they do not provide me with a relieving letter, but if they do, it will be a valuable addition to my growth. However, my concern is that my HR has mentioned that if I do not serve the notice period, they will proceed legally and raise a case against me. Since I am pursuing a career in banking, having a case filed against me would be a black mark on my record.

I will follow your advice and speak to my managing director today. I will also send an email regarding the same, so they may respond.

Thank you.

Don't worry, nothing will happen. They will surely not proceed with legal action, and even if they take a legal route, it will not affect you for sure. Talk to your MD and Boss in your organization. Proceed with your new job.

Good luck...!

Regards,
M. Kannan

I agree with all the points mentioned by M. Kannan. However, I suggest you have a word with your legal advisor to ensure no part of this matter is overlooked.

Regards,

I suggest you keep all the original letters you have received so far regarding the extension of your training period, as well as the original agreement you have entered. Do not give back any documents to the present HR without retaining any copies. Please ensure to retain the relevant emails as well so that in the future, if anyone starts troubling you regarding your quitting or for any reason thereafter, you will have proof of the instances. Best of luck to you at your new place.

Regards,
Sumathi P

When you write to your MD as suggested by Jeshkan, please do not forget to mention that your training was being extended every 6 months, but in reality, no training was being given. Instead, all the work that was being extracted in the guise of training was being commercially traded outside. Hence, since no training has happened, the bond is not valid. Assuming that the bond is valid, the initial period of two years that has been stated has been completed. Any extension done was not with your consent and acceptance. Hence, such a contract is void ab initio in the eyes of the law.

Since you desire to separate in a mutually cordial manner, request for relieving in a manner befitting a professional organization so that you can be a good brand ambassador of the company. If he is a professional, he will understand your language and release you. If he does not, then do not bother. Just go and join. Wish you all the best.

Regards

I have gone through your problem. It shows that you are still in training, so the terms and conditions in the bond the company has mentioned for the training period only are applicable to you. I don't know if in the bond they have mentioned the extension of training. If they have not mentioned it, then there is no value for the bond because you have the training extension letters as proof for you.

If they have mentioned up to 1 year of training, or it may extend, you can quit the job by giving a 1-month notice period or 1-month salary (if they mentioned it in the terms and conditions during the training period).

Communicate with them through a written letter and get a reply in writing from them, whatever they give you in reply.

In your resignation letter, mention your join date and your designation and get a photocopy of it to take a receiving signature from your boss or HR Manager; it is enough for your work experience, even if they won't give you an experience letter.

You have to show the bond and your training extended letters to your new employer and explain in detail. Don't worry; everything will be okay.

Regards,
Subramanya

I agree with the anonymous recommendation. Your bond is binding, and you cannot legally violate it, but you have to find the loopholes existing in the bond. The bond states a training period of 6 months and then your active service for the next 18 months, right? You have signed this bond and accepted the terms and conditions in it, so it is legally binding upon you. Did the company extend your training without giving any reasons for the extension? I think yes, it extended without citing any reason or instance of poor performance. Moreover, you have been working in a commercial way, and the company was deriving commercial value from your work; then it is not just training but actual active work, and you have to emphasize this point. Try to obtain some written proof that your company was benefiting commercially from your performance; that should be sufficient. Mention these two facts in your notice, and I am sure your company will not take any legal action against you. You can discuss these points at the table in a professional manner and may be able to settle the matter amicably and honorably too.

Regards,
Mahavir Mittal

I also agree with all the points mentioned by M. Kannan. However, what is the current status of your employment? Are you still under training, or has the company given you a probation letter? As you have said, the company used to extend your training every six months. If you are still under training, you can leave the company by giving short notice to them since it was agreed by both parties that either they will terminate this contract or you can terminate it. You have the full choice to leave the company if your training is still ongoing.

Thanks,
Deepak Medekar.

I am late in my comments. You have probably resolved your problem. Without seeing the bond, it's difficult to give a definitive answer. However, based on what you posted, you have completed 2 years as per your bond. Unless otherwise stated, the period of compulsory work includes the notice period. So, your HR contention is not only wrong but also seems designed for harassment.

Still, an amicable exit is always better, as in the future, someone might conduct a background check. You do not want negative feedback then. But if they don't agree, legally, you are still right.

Hi Kannan and other experts, I am Manu. I am working for an IT company in Bangalore. It's been more than 2 years in the same organization. Recently, I received an offer from a very good company, but they are asking me to join within 40 days. However, in my current company, the notice period is 90 days. I submitted my exit request for 35 days, which is 55 days less than my notice period. I managed to convince my supervisor, DU lead, and Project HR Rep. They all approved my early release, but the last approval pending from the case manager (kind of HR) has been rejected, stating that company policy requires serving the full 90 days. I made every effort to persuade her, but she didn't agree to the same. There is no dependency on me from a project end, which I also explained.

I am willing to go for a notice period buyout, as even my terms of employment clause states: "You may at any time terminate your employment by giving the Company ninety (90) calendar days prior written notice. Upon providing such notice, approval of any request for early release and/or any waiver will be granted at the sole discretion of the Company and will be subject to the terms and conditions of the Company, including but not limited to recovery in lieu of the notice period not served."

I am unsure how to proceed with this situation.

Regards, Manu