Employment Bond/service Bond - Pdf Download

Hi Members
I would like to know-
1. What is the legality of the employment bonds which the employees sign with the employers against some training programs?
2. Getting any bond from employee is legally enforceable or not?
I have gone through all the post related to service bond but was not able to find single satisfactory answer as it doesn’t refer to any act, law or rule.
So I request you to provide legal view and not personal understanding about this matter.

Hi Anurag,

In India Bond is illegal as follws

As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes

Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that’s amounting to the violation of the rights mentioned under Article 19.

[b]As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.

Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom its is enforced and if performed would violate principles of natural justices.

[/b]As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.

Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.

The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.

The court also has stated that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.

[b]Any complain on the company would land the Directors and Managing Directors of the company in Jail, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.[/b]

Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.

Hope it will help you.

Sachhin

Hi Peer sabh
Nice to have your comment on this.But I have gone through all the post in site,post seems to be contradicting each other.
I would really appreciate if you could provide us with article or memo or some kind of authenticated reports circular or data.
Please provide us with details
Have a great day
Anurag

Hi Sachin
Thanks a lot for your contribution.
So the extract is bond is applicable if company has provided some kind of training.
Lets take a senario
an employee signs a bond with a company for training and company puts a conditon that it would give 1 lac as training incentive after completion of training and the person would have to work for 4 yers with company.But company dosent give training incentive after the completion and employee leaves the job.
Now the question, is contract valid.

Legality of the BOND purely depends upon the Clauses added in the Bond....
It varies from Company to Company.....
Some Company take it to Court,,,
Some Companies leave it for the Betterment of Employees,,,,

Hi,
No employment bond for an employee in India stands nowhere. Legally it is not acceptable. The bond concept employers are using only for sek of psychological tool on an employee.
If employer says to go in the court in case of breaking of a bond from any employee it's waste of time of legal/HR person.
Thanks,
Amit

Hi Anurag,
Thank you vey much for your valuable info w.r.t bonded labour system.
But can you pl. enlighten me as to what do you mean when u say the bond is "one sided
REgards

Good explanation, but would any one tell me what can be done if you leave in between contract and there is no penalty imposed by the employer but experience letter and relieving letter not issued. Is there any legal solution which will give immediate result.

Hi Guys,

My name is Rohit , i worked with a noida based company about an year back and signed a bond with the company for a year, but i left the company after 9 months because the owner/management of the company was very rude and used to pressurise employes for no valid reasons , and because of that most of the employees left within 3-4 months.

Note: I mean to say the attrition rate of the company is very high.

Now my problem is that its almost a year since i have left my job there, but i dont know what happened to the owner of company he has registered a case against me and his layers are harrassing/pressurising my family and ultimately this guy(owner) has sent a summon/legal document to my father mentioning either to pay 1 lac ruppee or appear in court with in a day.

Right now i have 3 options left with me,would request you to give your feedback ASAP on that:

1. Should i pay 1 lac ps to my employer?

2. Should i fight the case against him?

3. Should i go for out of the court settlement?

In Singapore, we do have many cases whereby the company bonded the candidates. This is usually cases whereby the employer sent their employees on courses fully or partially paid by the empolyer. There are also cases whereby a employees will be bonded upon employment. However each parties are allow to break the bond if they can pay back the other party in terms of monetary.