Can I Leave My Job During Probation Without Notice After Signing a Bond? What Are My Rights?

Please help me:

Employee Bond and Probation Period Inquiry

1. An employee signed a 1-year bond with a $40,000 surety amount and is currently on a 6-month probation period. If the employee leaves the job during the probation period without any written notice or email, what rights does the company have?

2. If an employee signs an offer and appointment letter that includes a service agreement clause and a 1 or 2-year bond with a $40,000 surety amount, will it be valid without a stamped paper agreement? Can the employer take legal action against the employee for breaking the bond? What rights does the company have in this situation?

Please reply to me as soon as possible. Thanks in advance!

I suggest you please go to the research toolbar at the top of the page to search for your query. There have been numerous discussions on this topic in Citehr. I would still like to clarify your points shortly by answering your two questions:

1. If an employee has signed a 1-year bond with a 40k surety amount, if he/she leaves the company, the company has the full right to recover the said amount from his/her salary or from the employee.

2. If the same clause is mentioned in the appointment letter and also on the stamp paper, then both the letters are valid from a legal point of view. If an employee does not pay the surety/liquidity damage amount, then the company has full rights to approach the court and send notice to recover the amount from the employee.

Dear Naveen, I suggest you please go to the research toolbar at the top of the page to search for your query. There have been numerous discussions on this topic in Citehr. I would still like to clarify your points shortly by answering your two questions:

1. If an employee has signed a 1-year bond with a 40k surety amount, if he/she leaves the company, the company has full right to recover the said amount from his/her salary or from the employee.

2. If the same clause is mentioned in the appointment letter and also on the stamp paper, then both the letters are valid from a legal point of view. If an employee does not pay the surety/liquidity damage amount, then the company has full rights to approach the court and send notice to recover the amount from the employee.

Thanks for helping us, but I did not understand if the employee signed only the appointment letter in which bond criteria and terms & conditions are mentioned, then will it be valid or not from a legal point of view? Can I recover or not through the legal process? Please reply asap. Thanks.

I have stated in my previous post that the terms and conditions, as well as the surety/liquidity damage amount mentioned in the appointment letter or in the bond paper, are legal. The company has the right to take action against the employee to recover the dues.
Regards,

I am not in agreement with the above emails on the issue. You cannot bond an employee as bonded labor is prohibited. You should have a discussion with a legal luminary and ask them to send a legal notice to the company to get rid of such bond conditions. Moreover, such bonds are only one-sided and do not have locus standi in the law.

Thanks,
L. M. Sharma

I have information that the Supreme Court of India has given a ruling on such issues of bonds and ex parte clauses of notices, etc. Do you have knowledge of any other judgments by a competent court on such matters that you can share? I would be grateful to you. Additionally, as per the terms and conditions of employment, if there is a clause requiring the employer to pay compensation in case of termination, is this valid during the probation period? The clause does not mention the probation period.

Thank you.

Regards

Most employers require employees to sign a surety bond for the amount to be spent on training, relocation bonuses, foreign trips, hotel stays, etc. Such amounts are recoverable from the employee through the surety bond. The law prohibits employees from benefiting and then leaving the employer midway.

As adults, employees sign the surety bond after understanding the terms and conditions mentioned, including the merits and demerits. Therefore, the employer cannot be held responsible. It is important to note that bonded labor, which has different implications and clauses, is prohibited by law.

If I am mistaken, I welcome advice from seniors.

Regards