Can We Enforce a Service Bond Without a Specified Amount and Deny Certificates? Seeking Legal Advice

Hi, I am working in an IT company wherein Bonds were signed by a few employees traveling abroad for a period of two years. One such employee has resigned now.

The facts are as follows: The employee signed the agreement, which was on the letterhead of the company. The agreement did not mention the bond amount; it only mentioned the period of two years.

Can our company invoke the bond and deny the employee the Experience Certificate and Relieving letter? Also, in case the employee leaves without paying the bond amount, how do we recover the bond amount, and whether such agreement is legal and can be enforced through the court of law?

Please guide me.

Thanks & regards, Ranji

Dear Ranji,

Can you please attach that format? I will come with assistance if possible.

Regards,
Sidheshwar

Hi,

As per the description, it seems that:

a) A separate appointment letter is there.
b) A bond was signed specifically for the purpose of training.
c) In case the employee leaves within the stipulated time, no bond amount was to be recovered.

Hence, considering all these factors, you can deny him the F&F rights as he is not complying with the terms and conditions of the appointment letter, which would have a clause of signing a bond if the employee is sent for training abroad. Furthermore, if the appointment letter states that damages will be recovered, you can approach the court by filing a civil suit for breach of agreement and recovery of damages.

Hope you have a fair idea.

Anand

Dear Ranji,

I have been requesting a bond copy (for employees traveling abroad) for the past 2 weeks. Can you please help me with this? It would be greatly appreciated if you could send me a copy of the bond. I am awaiting your speedy reply.

Regards, Jitha

Hi,

I am working in a Malaysian company in the IT department. I signed a two-year bond with the company, wherein if I terminate before 365 days, I will have to pay 6 months' salary, flight tickets, visa fees, and other expenses incurred by the company. If I terminate after 365 days but before 2 years, then I will have to pay 3 months' salary along with all the mentioned expenses. I am originally from India.

I have already completed one year of service, but the company has not given me my bonus or any salary increment. The bonus amounts to 10% of my salary depending on performance. The company claims that my performance is not up to the mark. Additionally, I am facing family issues as my mother is unwell, and I have provided a medical certificate for this. Despite this, the company is insisting on the bond money. I gave them a 3-month notice after discussing with my manager, who assured me (verbally) that he would waive off the money if I improved the processes. I worked diligently to meet the requirements. However, my manager now states that it is up to HR to decide whether to waive the bond or not and has changed my department. Moreover, my previous manager is leaving, and the new HOD is uncooperative. Several Indian employees, including myself, have left due to the company's poor treatment. They all left without paying the bond, but I wish to leave peacefully.

Could someone provide guidance on how to handle this situation? I submitted my resignation in April, with my last day set for July, but the company refuses to waive the bond. They have also threatened not to renew my dependent visa as I am resigning before completing 2 years.

One important note is that the bond clause is specified in the Appointment letter and not in any separate agreements.

Regards,

Vicky

Dear HR consultants,

I am a qualified professional working in a bank. At my appointment, there was no clause for bond signing. Now, after six years, my organization says I must sign a bond or leave. It's not easy to find a job quickly. I asked management what benefits I would receive if I signed the bond, such as salary increments during the period. Currently, we are being paid below industry norms, and now being asked to sign a bond makes it difficult for me to explore other opportunities. Management's response was that they cannot commit to any specific benefits, but if I refuse to sign, I may have to leave the company. I have two kids and family responsibilities. What should I do? Please advise.

The penalty clause stipulates a one-year salary, which for me amounts to 3.5 lakhs, a significant sum.

Thank you.

Hi,

Is this happening with you only or other staff as well? Some companies are cutting their staff in this manner too. Employees won't have any other options. If you sign the bond, then they will not give you any salary hike. This is the purpose of such companies. If you are signing the bond, ask them to include the clause of Annual Increment. The bond should be in favor of both parties. If the company is asking for a bond, then there should be some training or something to show that the company has invested in you. In your case, you have already spent 6 years in this company. There is no point in signing the bond at this stage. I think they have something else in mind. It happened to me as well. I signed a 2-year bond, but there was no increment or bonus. The company takes advantage. You can refer to any labor court cases. But remember, the company always has the right to terminate you after giving notice or notice pay. The company is not liable to give you a reason. This is a standard clause of every appointment letter.

My suggestion is, you should look for a job outside. What are your skills levels?

Regards,
Vicky

Dear Vicky,
While joining this company, you have agreed with the terms and conditions of appointment. Now the ball is in your management's court. If they wish they can waive the notice period and other T&C of the Appointment. Else, you need to serve them the agreed period for separation. If you will break the contract and abscond from job, then the management will take a call whether to proceed legally or to close the issue.
Before taking any initiation, think seriously since it is your career issue.
Regards
Ravi A.

Dear All,

I had signed a three-year bond with a company as a management trainee. At the time of joining, they indicated that after completing one year of the probation period, we would be promoted to Assistant Manager. However, they designated me as Senior Executive instead. I worked for 1 year and 10 months before resigning from the company. I am currently employed at another company. My previous employer has sent me three notices, followed by a legal notice from their advocate.

Please advise me on what steps I should take.

Thank you in advance.