Stuck in a Job Bond: Can My Friend Avoid Paying for Breaking It Due to Family Issues?

Hi, My friend has signed a 2-year bond with Satyam Computers. Now, due to her family problems, she is not able to report in Hyderabad, which is her reporting center. She lives in Pune. She joined Satyam in June 2006. She has not been allocated a project yet. Now, she wants her reporting center to be changed to Pune, but Satyam personnel are not allowing her to do so. She is considering resigning. I just wanted to know whether she will have to pay the money for breaking the bond.

Hi,

It all depends on the company. If the company is stringent about legal matters, then your friend may have to pay the amount specified in the bond for breaking it, to which she has agreed. Probably, if your friend has a good relationship with her supervisor or HR, she can discuss the situation, explain the reasons, and potentially avoid the payment.

Thanks,
Pallavi.

Bond or Bondage Hi Friends I would like to high light certain legal problems that my HR friends are having or are subjected to such problems The problem I wish to discuss with all my friends is about Signing of Bond or rather to say completion to signing a bond to get a job. India is currently faced by 17% attrition per annum across all vertical and all industry. If we compare this ratio with other nations the attrition rate is very low, the highest is Australia. Bond was a way devised by some wise HR person sitting in USA. As per the law and regulation of USA this kind of arrangement between the employee and employer was acceptable. But some wise guy in HR in India had splendid idea of aping this idea into the Indian market without understanding the Legal, Social, and cultural back ground. 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. 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. 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. 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. 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. Thank you for your time patience and cooperation Much Obliged Octavious

Dear Friends,

This is to share another perspective. Firstly, it is misleading to call it a "bond"; it is, as a matter of fact, an agreement between the candidate (not an employee) and the company. The agreement is towards an arrangement for the company to train and impart the required skills, which are of world-class quality and in line with various industry-recognized quality certifications. In turn, the company expects the employee to help generate revenue based on the knowledge imparted, transforming the employee from a novice to an expert in that role.

The cost and effort invested from the company's perspective are substantial. Additionally, this agreement ensures that the skills acquired through training are made available to customers, with guarantees on availability and compensation for any losses incurred. Each company has its unique way of phrasing such agreements, including the penalties payable in lieu of any breaches.

In this case, I believe that the company has the right to pursue legal action against any associate violating the agreement.

Regards,
SKP

Hi,

No bond tying a person to a company can be enforced in the court of law. The company may threaten but cannot execute it. Hope she hasn't signed any bond related to her attendance at training overseas and the related expenses to be reimbursed by her to the company should she leave within a certain time period.

Regards,
Anuraag

Dear Friend,

I have read everyone's opinion and I agree with all of you. I would definitely like to know if the company has kept a few months' salary cheques with them or if it was just a signed bond. If Satyam is holding payments, even for a month, your friend has a strong point in proving this as an illegal act in court, as no employer can withhold a salary of any employee for the period served.

Secondly, even if the employee has signed a bond, in any unavoidable case, the employee can show consent for discontinuation of their services. Not only this, she is asking for a transfer to the same company's branch in another location. Since she is not granted this liberty, she is quitting. In any case, I feel your friend has many strong reasons to defy this bond/agreement.

Regards,

Shilpi
Delhi

Dear,

It all depends upon the bound what it says. If she had signed it, then she has to obey the points mentioned in the agreement. But it all depends on how she can convince the management to excuse all.

Thank you.

Hi,

If there is a specific clause about payment of damages in case the trainee leaves during the stipulated period, the bond is enforceable to that extent.

MSV