I recently joined a Public Listed Co., and the company asked me to sign a bond for 2 years. The bond states that I have to serve the company for 2 years and cannot leave before the 2 years. However, the company reserves the right to terminate my employment if I fail to meet their expectations or performance standards. If I choose to leave the company before completing 2 years, I would be required to repay ₹50,000 as damages to the company. This bond was executed on the company's letterhead.
Please advise me on what steps I should take because I am not willing to continue with the company due to my discomfort with the night shift and several other reasons. I have read somewhere that a bond signed on stamp paper is the only valid form in India.
Please advise on the validity of this type of bond in India and suggest what actions I should take.
Thank you,
Regards,
CJ12
From India, New Delhi
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Please advise me on what steps I should take because I am not willing to continue with the company due to my discomfort with the night shift and several other reasons. I have read somewhere that a bond signed on stamp paper is the only valid form in India.
Please advise on the validity of this type of bond in India and suggest what actions I should take.
Thank you,
Regards,
CJ12
From India, New Delhi
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HI, 1. As per Sec 10 of the Indian contract Act, 1872 bond is valid in India so just try to come out smoothly.
From India, Mumbai
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429From India, Mumbai
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Were you not aware of the night shift earlier? Issues arise in every organization. Some issues are small, but some are significant. How many companies will you switch due to such issues? Try to cope with them. However, it seems you have a good opportunity in hand, which is why you are not able to put your heart into work.
Communicate for a Smooth Exit
Absconding is never a good option. Kindly communicate with your HOD and HR and try to achieve a smooth relieving process. Try to negotiate on the bond money. A smooth exit will be beneficial for furthering your career as well.
Regards.
From India, Mohali
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Communicate for a Smooth Exit
Absconding is never a good option. Kindly communicate with your HOD and HR and try to achieve a smooth relieving process. Try to negotiate on the bond money. A smooth exit will be beneficial for furthering your career as well.
Regards.
From India, Mohali
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Thank you for your replies, guys. @ Lavika & Aditya - I knew about the shift, but I was not aware it would be so difficult for me to adjust. I have sleep disorders and am facing health issues due to it. I have just spent 45 days in the company, and I am not a permanent employee yet. So, isn't there any chance for me to exit without a formal resignation?
Thanks,
CJ12
From India, New Delhi
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Thanks,
CJ12
From India, New Delhi
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Section 74 of the Contract Act deems the imposition of a penalty to be invalid but allows for reasonable compensation to be recovered by the employer. In your case, the amount of ₹50,000 is a fixed bond that cannot be reclaimed; however, only reasonable compensation can be sought from you. Has the company incurred any expenses on your training, etc., which could be recovered from that amount? Please refer to the M/s Scipa case decided by the Delhi High Court in November 2011 for further information.
Thank you.
Regards
From India, New Delhi
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Thank you.
Regards
From India, New Delhi
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Bond of Employment.doc
Bond in employment.pdf