Confused About Resignation and Service Bond? Need Advice on Legal Notice Risks

I joined a company on Feb 17, 2014, and in the appointment letter, it was mentioned, "unless an appointment letter is issued after the completion of training or the same is shortened or extended in writing, the training shall automatically stand terminated at the end of the 12-month period." I attended the office until March 22, 2015, but I did not receive any letter for the extension of training, and neither was I confirmed in the post mentioned in my March salary slip.

Now when I went to resign, they are not accepting my resignation, saying I had a service bond of 3 years. Please let me know what termination of training means because after training completes, we were to get confirmation, but I did not receive that and no extension of training. Additionally, we had a service bond that says to pay 1.5 lakhs if I leave before 3 years, stating they incur expenditure on our training. However, we were not given any training. In fact, the company did not have any training department when I joined, and we were asked to do duties as regular employees, which were recorded in the daily LOG book.

What will be my chances if they send me a legal notice? Also, the sign of surety or father on the bond agreement is not present in my agreement. Please suggest what I should do as I am thinking of sending a resignation letter via post.

Understanding Bond Liabilities and Employment Contracts

Even if you have signed a bond, as per Sections 73 and 74 of the Contract Act, the employer can recover only a reasonable amount of expenditure incurred on you in imparting training. Since no amount was expended on you, it was a fake arrangement made by the employer, and he cannot recover any amount.

Furthermore, under the State Shops and Establishment Act, the employer cannot make any deduction in relation to your employment except what is authorized under the Act. If you are covered under the ID Act, then such an agreement may be treated as unfair labor practice.

If you are considered a probationer as per the agreement, then give resignation by a registered letter, providing the period of notice or pay in lieu as provided in the Act. Ensure compliance with the Act. Refer to other threads regarding bond liabilities.

Thanks,
Sushil

Common Techniques to Retain Employees

Who would like to pay bond money? Who would like to fight legal battles? Most employees are busy looking after themselves and their dependents. In your case, the company will not be able to recover any money from you since the training was only on paper, and you were working as a regular employee. Give them a letter of resignation and get it acknowledged. When you take such steps, always consult a lawyer with full facts and available documents so that correct legal advice can be taken. What learned members advise here is based on what is written by the poster, and full information may not be available.

In addition to this, I was registered as an apprentice on the date of joining. At that time, the HR person told me that this was a formality, but later I came to know that only unemployed persons can be registered for apprentice training. I have found my name on the website of the Board of Apprentice Training with a registration number and registered in the name of the same company. I think they must be receiving money from the central government for my stipend, and they have still not given me any certificate for that.

Company seems to have indulged in incorrect practices. Registering you as an apprentice without your knowledge is a highly opaque action. Showing you on company training when you were asked to work as a regular employee. The company cannot enforce the bond. Their hands are not clean; they will easily get exposed in court.