Hi, I want to get your opinion on the following situation for my friend. She has received an offer from an IT firm to join as a recruiter but mentions that she would need to sign a 2-year bond. In addition to signing the bond, she also has to provide an undated cheque of Rs. 2.5 lakh as security along with the bond. If she decides to leave the company before completing 2 years, the cheque will be cashed; otherwise, it will be returned to her after the 2-year period.
I have heard of companies requiring employees to pay a certain amount if they leave before the bond period ends. However, is it common in the industry now to ask for a cheque as security in addition to the bond? If so, what is the purpose of the bond if a cheque is also requested? There could be a risk of misuse, so what do you think she should do? Should she provide the cheque as well, or is signing the bond sufficient?
Thank you for your insights.
From India, Indore
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1I have heard of companies requiring employees to pay a certain amount if they leave before the bond period ends. However, is it common in the industry now to ask for a cheque as security in addition to the bond? If so, what is the purpose of the bond if a cheque is also requested? There could be a risk of misuse, so what do you think she should do? Should she provide the cheque as well, or is signing the bond sufficient?
Thank you for your insights.
From India, Indore
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Hi,
That's a very weird way of forcing a person to be in work. Anyways, ask your friend to go for the job and also give them the cheque. But prior to that, please ask her to get her appointment letter, and then give the cheque to the company.
Once your friend gets the offer letter, get the offer letter and the cheque she is supposed to give the company photocopied. Attach a letter to it. In the letter, give a standing order to the bank whose cheque she issued not to clear the cheque if it comes to them, as the cheque has been provided to the company under undue influence and was not given by your friend with complete and clean consent.
BUT IF THE BANK DOESN'T AGREE TO HER REQUEST, THEN DO NOT JOIN. PRIOR TO DOING ALL THIS, PLEASE CHECK WITH YOUR FRIEND'S BANK TO KNOW IF THEY WOULD COOPERATE OR NOT. GO FOR NATIONAL BANK; THEY ARE MORE COOPERATIVE.
THINK ON IT. IF YOU FEEL OK, PROCEED AHEAD.
THANK YOU
From India, Mumbai
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That's a very weird way of forcing a person to be in work. Anyways, ask your friend to go for the job and also give them the cheque. But prior to that, please ask her to get her appointment letter, and then give the cheque to the company.
Once your friend gets the offer letter, get the offer letter and the cheque she is supposed to give the company photocopied. Attach a letter to it. In the letter, give a standing order to the bank whose cheque she issued not to clear the cheque if it comes to them, as the cheque has been provided to the company under undue influence and was not given by your friend with complete and clean consent.
BUT IF THE BANK DOESN'T AGREE TO HER REQUEST, THEN DO NOT JOIN. PRIOR TO DOING ALL THIS, PLEASE CHECK WITH YOUR FRIEND'S BANK TO KNOW IF THEY WOULD COOPERATE OR NOT. GO FOR NATIONAL BANK; THEY ARE MORE COOPERATIVE.
THINK ON IT. IF YOU FEEL OK, PROCEED AHEAD.
THANK YOU
From India, Mumbai
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Hi Teena,
That's bullshit. Don't ever fall into the trap of such a thing. Ask them if they are giving any guarantee for a better job position after 2 years, higher growth, or a higher salary. If they answer yes, can they assure you in the same way? If someone does not believe in you, then don't even believe them. These sorts of companies are spoiling the very essence of HRM. Be firm; there are plenty of other companies to check out. Also, try taking suggestions from people who are already working there, a friend, or a reference. Good luck anyway.
Deepak. M
From India, Mumbai
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That's bullshit. Don't ever fall into the trap of such a thing. Ask them if they are giving any guarantee for a better job position after 2 years, higher growth, or a higher salary. If they answer yes, can they assure you in the same way? If someone does not believe in you, then don't even believe them. These sorts of companies are spoiling the very essence of HRM. Be firm; there are plenty of other companies to check out. Also, try taking suggestions from people who are already working there, a friend, or a reference. Good luck anyway.
Deepak. M
From India, Mumbai
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Hi,
Yes, they can charge under Section 138 of the Negotiable Instruments Act. However, this act won't be applicable if you provide your company with proper notice stating your reasons for resignation. If the company still does not relieve you, they would be forcing you into involuntary employment, which is illegal. Therefore, you have the full right to protect your rights - both monetary and fundamental - from a company that is compelling you to do something against your will, amounting to an illegal activity.
So, handle the situation tactfully, not emotionally. As a legal/HR professional, I would advise against pursuing this route and suggest looking for opportunities elsewhere. If you ever require legal assistance in the future, please feel free to reach out to me via email at kautilya786@yahoo.com.
From India, Mumbai
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Yes, they can charge under Section 138 of the Negotiable Instruments Act. However, this act won't be applicable if you provide your company with proper notice stating your reasons for resignation. If the company still does not relieve you, they would be forcing you into involuntary employment, which is illegal. Therefore, you have the full right to protect your rights - both monetary and fundamental - from a company that is compelling you to do something against your will, amounting to an illegal activity.
So, handle the situation tactfully, not emotionally. As a legal/HR professional, I would advise against pursuing this route and suggest looking for opportunities elsewhere. If you ever require legal assistance in the future, please feel free to reach out to me via email at kautilya786@yahoo.com.
From India, Mumbai
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Dear seniors,
Unfortunately, I made the serious mistake of signing a bond and providing a security check of 1 lakh rupees without a date. The bond, written on a 100 Rs non-judicial stamp, states that if I leave the service before 2 years, I will have to pay 2 lakh rupees to the company.
The company is burdening me with extra work and paying me very little. They are not allowing me to search for other job opportunities; in fact, they threaten employees who attempt to do so.
Please advise me on how I can break this security bond as soon as possible. I feel hopeless day by day. Your help is greatly appreciated.
Thank you.
From India, Delhi
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Unfortunately, I made the serious mistake of signing a bond and providing a security check of 1 lakh rupees without a date. The bond, written on a 100 Rs non-judicial stamp, states that if I leave the service before 2 years, I will have to pay 2 lakh rupees to the company.
The company is burdening me with extra work and paying me very little. They are not allowing me to search for other job opportunities; in fact, they threaten employees who attempt to do so.
Please advise me on how I can break this security bond as soon as possible. I feel hopeless day by day. Your help is greatly appreciated.
Thank you.
From India, Delhi
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SECURITY AGREEMENT.doc