Is It Legal to Have Candidates Sign an Employment Bond Before Joining?

Hi all,

I would like to get a format of a bond that can be signed by the candidate before taking up employment. I would also like to know if this is legally enforceable.

Warm regards,
AB

Dear AB,

Find enclosed one of the sample Bond letters. I hope it will help you to draft the same.

Regards,
Amit Seth.

Hi,

Obviously, if you get it done on stamp paper, then it will definitely have value. This is because if the pros and cons are clearly written in the document and one has given their approval, then they must abide by those rules.

Regards,
Amit Seth

Dear Amit,

Thank you for your information. However, on this site, I have noticed that many seniors have posted their opinion that bonded labor of any sort is not legally valid. If an employee has undergone any training incurring significant expenses from the employer during the course of employment, then the employee who has signed the bond should compensate the employer appropriately before being free to move out (while still serving the notice period).

On the other hand, even if the employer has only incurred nominal expenses for training, particularly for personal grooming, the employee can still choose to leave after serving the notice period as mentioned in the offer letter or bond agreement.

Seniors, please correct me if I am mistaken. I have observed that many members on this site share a similar opinion as described above.

Thanks and regards,
Gururaj

Thank you, Mr. Guru 1967, for the correct answer and enlightening our fraternity.

I have noticed many misleading opinions being repeatedly aired, leading to a misunderstood concept. I know that during the 60s and 70s, such practices were in existence but never prevailed in any courts. There is no incident that we can cite where the Supreme Court has upheld such agreements, at least not in the last 20 years.

I vouch that you are absolutely right in stating that unless something causes irrecoverable damage to the employer's business, employees are free to discard such bonds at any time. You are legally correct. No such agreement stands in the court of law because if an employee is offered better service conditions, they have the fundamental right to leave for a better option without causing harm to the previous employer. Employment is a subject that can always be dispensable.

Regards,
Sawant

Dear friends,

Please go through the article attached to the following post for the legality of the bonds:

https://www.citehr.com/30808-bond-legal-india.html

Regards,

Hi Guys,

My company would like to sponsor one candidate for a Lecturer position to continue her Master's degree. Should I include her sponsorship in her employment letter or should I create a separate letter for this purpose? I would appreciate it if anyone could provide me with the format of this letter or point out what I should include for her (e.g., duration of employment or full payment of the total cost of sponsorship if the employment is terminated prematurely).

Thank you. Rashdan

Hi Amit,

Can you please send me the format as we have an urgent requirement for that? We are sending some candidates abroad for 6 months; they are not our employees. We are hiring them for only 6 months.

Niruti

Hi all,

This is Nikki. Two weeks back, I joined a job in a software company by signing a 3-year bond. In that, it specified that I should work for 3 years there. If I breach the bond, I should pay a 1.5 lakh amount, else they would file a case against me in court. Now, I got a good job in an MNC, and I want to join there. If I quit this job, will they file a case against me in court? I am just fearing about that. Can anyone tell me the solution? Whether employment bond is legal? Will it work in court? Please, guys, do help me. I signed a twenty rupee bond paper.

Thanks,
Nikki Sam

To put it in simple words:

What is restricted by the Constitution cannot be allowed by law. Any contract that encroaches on constitutional rights is void or voidable. Bondage is an encroachment on the constitutional right of employment.

Bonds do not hold any weight, unless it can be understood that the employer is justified in making a contract due to having spent a large sum of money on providing specialized training or sending the employee abroad for specialized training/know-how.

Bonds are not enforceable in India.

Hi Nikki,

Please note carefully what is said:

1) Does your appointment have any clause on notice for termination of the employment contract?

2) Have you signed and acknowledged the bond, i.e., accepted the bond?

3) Because if you have acknowledged the bond, it is a contract, and a civil suit can be filed by your employer for the breach of contract.

4) However, there isn't any need to worry as such suits don't stand any chance at law, but you can be put to financial and mental trouble until it is decided by the court.

5) You should, however, resign and emphatically tell your present employer that you know bonds are not enforceable at law in India, and that they may go ahead as they wish, and finally, you will recover dues from them along with legal dues for unnecessary harassment caused to you.

6) Clearly inform them that you will not be available post the end of your notice period.

Do get back in case you need any more assistance on the subject.

Rajesh Mishra
+91997988164

Dear Seniors,

I urgently require the Service Bond format in a Word file. Please share.

Regards,