Can My Employer Demand Compensation Without a Signed Bond? Urgent Help Needed!

I have signed an offer of engagement with a government institute as a contract employee for 2 years. I have worked for 6 months. I have not signed any legal bond (on a stamp paper). Now, the employer is saying that although you have not signed a bond, as you have accepted the offer, you need to compensate the company.

Please help me out. It is urgent.

What are the terms and conditions of the contract?

All contracts have a termination and exit clause.

What is your appointment/designation in the company? From the details given above, no clear answer can be given.

Terms of Engagement

1. The engagement shall be purely on a contract basis, initially for a period of 2 years.

2. She shall be under the direct administration of XYZ.

3. This assignment is purely on a temporary basis and does not envisage any form of regular appointment in the project or with XYZ.

4. She is required to sign a 'bond' to serve the organization for at least 2 years or until the termination of the project, whichever is earlier.

5. In the event of a breach of contract, she shall be liable to pay 3 months of the gross salary last drawn.

6. The 2-year contract can be further extended based on her performance and the project's requirements.

7. If she is willing to accept the above terms and conditions, she may report within 10 days from the date of the order to XYZ, duly giving her acceptance of the same in writing and also signing the duplicate copy of this offer as a token of having accepted the terms and conditions of the aforementioned offer.

Note: I have not signed the bond as mentioned in the letter as they gave it to me after 5 months of the job, and I am no longer interested in working for the organization.

Exit Clause in the Contract Document

You have not mentioned anything about the exit clause in the contract document. The following two points are a part of the exit clause:

- Can the company remove you if they are not satisfied with your performance?
- Can you leave if you are not satisfied with the company?

For proper advice, you need to share details about the points mentioned above. Not signing the bond is an irregularity on your side. Although the company has delayed it, it still does not mean that it is not part of the contract. You signed the contract and started working with the knowledge that you are required to sign the bond.

Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

Have you submitted your resignation?

If not, then consider going on leave and extending it gradually, or remain absent due to health reasons.

Understanding the employer's obligation regarding bonds

Getting the bond signed is the obligation of the employer, not the employee. Therefore, you should not be treated under the terms of the bond. In the absence of documents and certain information from you, it is very difficult to give an opinion.

Consulting a lawyer for career-related issues

I suggest you consult a good lawyer with all relevant documents, such as your offer letter, and seek their advice. This would be more helpful as it concerns one's career.