Facing Resignation Request During PIP with a Pending Bond: What Are My Options?

Hello, I have worked in this IT company for two and a half years. I was put on the Performance Improvement Program last month, and today I received an email from HR stating that "Your performance during PIP was unsatisfactory, and you are requested to resign tomorrow." I can resign tomorrow, but the issue is I had signed a bond with the company during my joining, and one month is still pending for my bond completion. I had not submitted anything like a cheque or mark sheet to the company as security. I am having all this communication with HR over email. What should I do? Should I wait to be terminated?

Performance Improvement Plan and Resignation Advice

Bond is only technical. Forget about it. If you were under a Performance Improvement Plan (PIP) and have not shown any improvement, it is advisable to resign. Otherwise, the company can easily terminate you. If terminated, your career might be negatively impacted, and finding a good job elsewhere could become difficult. The termination letter will state that you were given an opportunity to improve but failed, leading to your termination from service. Therefore, I advise you to resign and obtain a certificate showing that you have been relieved following your resignation.

Thank you for the response. I want to add the following details.

HR's approach to experience and relieving letters during bond period

In my company, I have observed that HR does not easily provide experience and relieving letters to employees who resign during the bond period. HR demands compensation for the loss of pay equivalent to the amount specified in the bond. Below is the email I received from HR, requesting an early release email from my side, indicating that I will be removed from the company on the same day:

"As per the previous email regarding your PIP, you were provided with a list of areas for improvement.

The PIP ended yesterday, and below are the observations: During the PIP, there was no significant improvement seen at a satisfactory level. As a result, you are being relieved from the services, effective 7th January 2025.

We request you to send a resignation email to us, requesting an early release on 7th January 2025."

As per the above email, I would be removed on the same day I submit the resignation email.

Concerns about resignation and PIP completion

Would it be safe if I resigned? Regarding the PIP, I completed most of the tasks on time, but not all. Additionally, I have sufficient SL and CL leaves that I can take for 2 weeks, during which my bond would be completed as well.

I don't think that the HR person would be so foolish to demand a bond amount because if he demands a bond amount, then the entire PIP will become just an intentional one to avoid an employee. The HR should know the consequences that will follow if he demands a bond amount, along with forcing an employee to resign. In fact, no HR can send an email like this where he has asked you to resign.

If your performance has been unsatisfactory, instead of asking you to resign, the HR should have sent a show cause notice informing that the management has decided to terminate you from service, and if you wish to say something, you should make it in writing within, say, three days. When this is the procedure, the HR has emailed that you will be relieved on the 7th and again has asked to submit the paperwork. The second one is a technical error committed by the HR.

But if you feel that soon after submitting the resignation, they will demand a bond amount, then you should take the employer before the law. Therefore, please talk to them. Before that, study what is written in the bond regarding the termination of employment by the employer. If the bond is enforced even when the employer is terminating the contract, then it would be a gainful business for them, that they can hire employees with a bond for two years, and just before that ask the employee to leave on any ground, including bad performance, and then collect a very good amount as a bond! That should not be allowed.

First, the bond itself is illegal, and now in this case, demanding a bond amount when the employer himself is violating the bond. That is not possible. Therefore, speak to the HR person. You should tell him that if he demands a bond amount, it would be against the law, and he will be taken to court.

Okay. I am attaching the Bond PDF below for your reference. I am very grateful for your advice as I did not know whom to trust at this stage and seek advice and take help. I used "Anonymous" instead of my name in the Bond PDF. I have used "XYZ" in place of the company's name.

"My bond will end on the 18th of this month."

P.S.: If you face any issues while downloading the PDF, please let me know. I have verified it from my side, and it is downloadable.

The company's bond conditions

The company itself knows that the conditions in the bond are "negative" and are negative covenants. It is an anticipatory bail taken by them. Anyway, this bond is not enforceable by law. Certain clauses (like clause 6) are just whims and fancies of the employer, but under the law in force, the employer cannot just dismiss an employee even if there is a bond like this. Moreover, if there is a bond, it should be equally liable to both parties. The employer cannot exploit or take advantage of a situation where the employees are weak in bargaining because of the situation in the labor market. You should take it to the law enforcing authorities.

Understood, it makes sense, but it's still challenging for me.

Further to add, I have not received any prior written feedback or formal warnings regarding my performance before being placed on the PIP. While my Reporting Manager did provide verbal feedback in July 2024, I am concerned about being put on a PIP without sufficient prior notice or any formal indication of issues. Over the past two years, I have received two Appreciation Letters from the company—one in the first quarter of 2023 and another in 2024—which makes this situation even more confusing.

Regarding the bond

If I request via email to nullify or disregard the bond, I believe HR may not acknowledge or accept any such request. My immediate priority is to focus on preparing for interviews and securing a new job, as I don't have the time or energy to get involved with HR or a Labour Officer at this point.

My main concerns are:

1. Resigning before completing the bond: I fear that if I resign early, they may complicate the exit process, potentially withholding my Experience and Relieving Letters.

2. Requesting a one-month extension: My notice period is 2 months, but based on the email I received from HR, they are requesting an early release, which suggests they do not want me to serve the notice period. I am considering asking them to at least allow me to complete one month of the notice period.

3. Using my leave balance: Alternatively, I am thinking of utilizing all my sick and casual leave until the bond period ends, allowing me to resign at my own pace without being pressured by HR's immediate request.

Given these circumstances, I would appreciate your advice on the best course of action to navigate this situation effectively.

In continuation...

Requesting an extension of PIP

What if I request an extension of my PIP by 2 to 4 weeks? If granted, this would be very helpful to me. Additionally, this extension would align with the completion of my bond, giving me sufficient time to explore other job opportunities while ensuring a smooth transition. Along with this, I can resign during the ongoing PIP as well after bond completion.

Concerns about the statements

Do all of the statements, especially the 4 points, sound too childish and too good to be true?

You can do one thing: submit your resignation with a notice period of two months. The resignation should also mention the attempts made by management/HR to establish that you did not meet their expectations. If you state in your resignation letter, "As per clause ... of the contract of employment, I am providing two months' notice of resignation and I may be relieved from service on 6th March 2025. During the notice period, I will be available for knowledge transfer and handing over of my responsibilities." In this case, the management would have no choice but to let you stay in the office for two months or pay you two months' salary to be relieved immediately. It would then be up to them to initiate breaking the bond. This approach can be effective.

During my discussion with HR this morning, I was informed of the following:

1. I must either submit my resignation by 4 PM today or face termination.

2. While submitting my resignation, I should include a statement indicating that the "Service Agreement/Bond" would be nullified. HR assured me that she would respond to this email, confirming the agreement as "agreed and accepted." However, HR mentioned that she cannot initiate the confirmation by responding first; I need to include this in my resignation email for her to acknowledge it.

Write back to the HR BP and their supervisors, clarifying the bond and its validity concerning the demanded resignation. Request them to confirm in writing.