Dear Tarikaa,
The definition of [i[indemnity[/i] is: (a) protection against future loss (b) legal exemption from liability for damages (c) a sum of money paid in compensation for loss or injury
Therefore, the questions that arise are:
d) if the candidate joins without a proper relieving letter, then who will protect whom against future loss?
e) if the candidate joins without a proper relieving letter, then who will incur what damages and if you foresee the candidate incurring damages, then how your company will be involved?
f) If the candidate joins without a proper relieving letter then what compensation your company will be required to pay and to whom?
Notwithstanding the questions on the indemnity bond, the overriding question is why do you wish to hire a candidate who is unable to furnish a proper relieving letter? Have you or your client encouraged the candidate to abandon his/her current employment so that he/she can take up a new job? If /you have encouraged him/her, then what is the guarantee that the candidate will not do the same to you that he/she is doing to his current company?
It speaks poorly of the candidate if he/she abandons his/her employment for a greener pasture. It speaks equally poor of a company if it hires a candidate who abandons his/her employment. Furnishing an indemnity bond or any other legal bond does wash away the blemish of the unethical actions.
Thanks,
Dinesh Divekar