Facing Legal Action for Leaving Job Early: Can I Fight This Without a Signed Bond?

Hi,

I joined XYZ Company last June, and according to the appointment letter, it states that training will be for 1 year. If the employee leaves the company within a year, he should repay all the payments given to him plus 5000. I worked for 8 months and I quit the company because the company was really bad, and I started getting health problems because of the heat generated in the industry. I sent my resignation through email, and I got a letter saying to pay the 8 months' salary. I ignored the letter. Now, after 10 months, they have again sent a letter saying to pay the amount, or else legal action would be taken, amounting to around 80,000. Please help. I have not signed any bond paper or revenue stamp. Do the points in the appointment letter alone stand good to put a case against me? Please help me out as the amount asked is too huge. Can I fight it out?

Thank you.

Thanks, Prakash. So, does the point stated in the appointment letter become void if the company goes to court? I also heard that unless I have signed on any bond paper or revenue stamp, there is no danger. Is it true? Signing in the appointment letter with the points added regarding bonds is of less value (i.e., it cannot withstand in court). Please help.

Dear Rohit,

You are into a bit of a problem. Even if there is no bond or agreement made on stamp paper, there could still be a valid agreement. Once you accepted the offer of appointment, you are bound by its terms. 😒 But you need not worry. As the contract conditions cannot be lopsided, opposed to public policy and equity, all your escape routes are not closed. No normal person would uphold such a condition.

So even if the party goes to court to enforce its claim, a good advocate can help you get out of such fanciful claims. 😎

Regards,
KK Nair

Hello,

For God's sake, stop repeating the same topic. The members of the forum have answered the same question a trillion times. Please refrain from posting your queries without appropriate research of the forum's contents.

Kindly follow the links mentioned below, and you will find the answers you seek:

<links removed>

Thank you,

Octavius

Also, you should reply in the following format with appropriate adjustments in the letter to the people who have sent you the letter. If the problem persists, do let me know.

The declaration-cum-undertaking (bond) on a stamp paper is a practice followed by many small companies to retain their employees at a lower salary than what the market offers. As you rightly said, these bonds are totally one-sided. They also mention that they provide specialized training to camouflage their intention.

Since they have sent a letter to you along the following lines:

1. You deny everything that is written in their letter.

2. They have not provided any training, whether specific to the job or general since you have only worked for two weeks. Hence, the cost of training does not arise at all.

3. The normal practice in the industry is to give 24 hours' notice during the probation period before leaving the job. Therefore, you are not liable to pay either.

4. Demand the salary for the period you have worked.

5. The letter sent by them is coercive in nature and puts you in a ransom situation, which is illegal. You can consider taking civil as well as criminal action.

6. Bondage in any form is illegal and unenforceable in Indian law.

7. It violates Article 19 of the Constitution - Right to Work.

8. It violates human dignity and nullifies the growth and aspirations of youngsters.

9. Job changes are common in a free economy, and one company cannot set its own terms and conditions, which goes against the economic growth of the younger generation and the country in general.

10. Wait for one week, and if they do not take any action, please ignore the letter and join the new company.

11. Keep the new company informed about the developments.

12. If they send another letter, reply with the above lines or as follows:

Quote:

I deny all the allegations mentioned in your letter dated ___. Please send me the salary for the period worked, after deducting one day's salary as notice pay during the probation period.

You have not provided any training, whether specific or general, since I have only worked two weeks with your company. Even if the training you promised was specific to the job I was supposed to perform, it has no value outside your company, nor does it enhance my knowledge. Every company, whether small or large, provides training tailored to suit their requirements to improve their employees' performance, and no compensation or damages can be demanded, as the training has no value outside the company. Employees, after specific training, can do a better job, with benefits accruing to the employer in increased efficiency from a low-paid employee.

Any form of bondage is illegal in our country and violates Article 19 of the Constitution of India - Right to Work. This action also goes against human dignity and amounts to gross injustice to human beings who are unable to compete equally.

I demand my entitlement of 15 days' salary due to me. You are also liable to pay damages of Rs. 50,000 for the loss of opportunities and mental agony I have suffered due to your inhuman, illegal, and arbitrary actions. This is without prejudice to my right to take any civil or criminal action against you, at your cost, as advised by my lawyer.

Please note that if I do not receive a reply acceding to my request, I will be forced to take legal action, civil and criminal, as per the law, at your cost and consequences. I will also be compelled to report this behavior to the Human Rights Commission to put an end to this type of threat and coercion amounting to demanding ransom.

End Quote:

You have reneged on your promise to train me by not providing any trainer, on-the-job or otherwise. This is a breach of trust and cheating.

Please send this mail via registered post and also to your company's email ID simultaneously.

Dear Sender,

Please do not initiate any action from your end. Let the organization file a suit against you (most probably they may not). If at all they file a legal case against you, then you may approach the labor department for assistance.

With regards,

L Kumar

Dear Octavious,

I must commend you on the excellent explanation you have provided. I am a Manager-HR in an ePublishing BPO in Chennai and have spent the last two years editing and redrafting this employee service agreement. I advise employees to thoroughly read the agreement before signing, and should they find anything that may harm their career prospects, I urge them to refrain.

I have often found myself at odds with the CEO over certain clauses, even going so far as to cite Supreme Court references. As a result, I have rejected some clauses that I was originally compelled to include, but have modified them in a way that diminishes their impact.

It is disheartening to witness the deteriorating mentality of many employers, which often seems unethical and shortsighted. One can only imagine how they behaved when they were employees themselves.

An employer should not impede the future career opportunities of former employees. They should not restrict an employee or consultant from pursuing future opportunities within the same field.

Today's exceptional employees are likely to evolve into outstanding employers of tomorrow.

Regards,
Chandru

Sorry, Octavius... though I have read many FAQs regarding bonds, I still don't have a clear picture in my mind. I have doubts about whether they might interfere with my current company work (but I am sure that my earlier company people don't know where I am working now).

NOTE: I had resigned from my earlier company due to my health problems only. Kindly bear with me, as I am really frightened upon seeing the letter, and it has caused me mental tension.

Please help.

Hello,

I am sorry for being so assertive with my statements. Don't worry; I have given you complete details regarding the bond. Please be rest assured and continue with your current job, but please do reply to their mail; otherwise, it would be treated as an acceptance. Do contact me if you need any assistance.

Thank you,
Octavius

Dear Admin,

I am employed in a software organization in the marketing department. I have signed an employee agreement for 12 months with a surety provided by my father for 50,000 Rs on a 100 Rs stamp paper. I also have an offer letter that states the notice period is 3 months or a 3-month salary of 60,000 Rs with a probation period of 6 months. I have been with the company for the past 5 months. I want to quit as the company is not good, there is no growth, no promotions, and the managers are pretty bad. The company is also not providing PF and only 8 holidays per year.

What happens if I quit the company without serving the notice period? The company is asking me for 119,000 Rs as compensation. Will they take any legal action for the same? I am worried about my career.

I know this topic has been posted several times, but I am a bit scared of this situation. Please help.

Regards,
Tushar

Dear Tushar,

If you had merely signed a Bond without any training, then such a Bond is a restraint on your professional pursuits. Please take local specialist legal advice. Do not be fearful.

With Regards,
V. Sounder Rajan

E-mail: rajanassociates@eth.net

Hi,

My sister joined Hexaware 2 years ago. She signed a 2-year bond, but after one year, she was unable to continue the job. Suddenly, last week, we received a letter to our address asking us to pay a sum of Rs. 2,40,000. Could you please advise on how to handle this problem? Do we need to consult a lawyer? Your input will help us react accordingly based on the suggestions.

Waiting for your valuable input.

Thanks in advance.

Thanks, pk

Dear Octavious,

You have provided a very good explanation. I am a Manager-HR in an ePublishing BPO in Chennai, and over the past two years, I have edited and redrafted our employee service agreement. I advise employees to carefully read the agreement before signing, and if they find it detrimental to their careers, they should refrain from signing it.

I have often opposed the CEO on certain clauses and have even referenced Supreme Court cases to support my arguments. As a result, I have rejected some clauses that I was initially forced to include, but I have modified them to have a lesser impact.

In general, the mentality of employers has become negative and questionable. Employers should not impede the future career opportunities of their former employees. They should not restrict their ex-employees or consultants from pursuing opportunities in the same field.

Today's good employees will likely become good employers in the future.

Regards,
Chandru

Hi,

My sister joined Hexaware 2 years ago. She signed a 2-year bond. After one year, she was unable to continue the job. Suddenly, last week we received a letter to our address asking us to pay a sum of Rs. 2,40,000. Could you please advise on how to handle this problem? Do we need to consult a lawyer? Your suggestions will help us react accordingly.

Waiting for your valuable input.

Thanks in advance.

Thanks,
pk