I am a fresher and I have signed an employment bond of three years with a company. Now I have sent this bond along with the acceptance of the offer to the company, but I have not yet joined the company.
Employment Bond Agreement
This Employment Bond Agreement is entered into on this ______________ at XYZ (for the sake of brevity hereinafter referred to as XYZ), a company incorporated under the provisions of the Companies Act, 1956, having its registered office at ABC (which expression shall, unless repugnant to the context or meaning, include its successors and assigns).
And Mr. ________________________ S/o. ______________, an Indian resident, aged about ____________, having a permanent address at ______________ and currently residing at ______________, having PAN _________________, hereinafter referred to as the employee (which expression shall, unless repugnant to the context or meaning, include its successors and assigns).
WHEREAS XYZ is the Company engaged in the business of PQR, and WHEREAS the Employee is employed with XYZ as a Trainee Software Engineer since ____________.
AND WHEREAS the Company, based on the willingness, representation, request, and promises of the Employee, has agreed to spend valuable management time, efforts, scarce resources, and money for inculcating and developing the Employee as an employee with the requisite skills, for continuing his employment with the Company.
AND WHEREAS the Company and the Employee voluntarily agree that after the said Training, it is necessary for the Employee to work for the Company for at least a certain minimum period in order to compensate the Company for the expenses incurred and other resources spent for providing the said Training upon the terms and conditions stated hereinafter.
AND WHEREAS it is one of the conditions upon which the Employee would be imparted training and offered employment is that the Employee must sign and submit the Employment Bond Agreement within 15 (Fifteen) days from the date of receiving the offer letter and must join XYZ within the given time and shall not leave the employment for any reason whatsoever, or XYZ must not have terminated his/her employment with XYZ for any reason whatsoever for a period of 36 (Thirty-Six) months from the date of commencement of the employment; as a security for liquidated damages in case of breach of the condition mentioned in this paragraph. This BOND shall remain valid till the completion of 36 (Thirty-Six) months of employment of the candidate with XYZ.
AND WHEREAS the said employee is desirous to join XYZ and undergo XYZ’s training program and hence has agreed to sign and execute this Employment Bond Agreement in favor of XYZ by making all necessary arrangements.
NOW THIS AGREEMENT IS WITNESSTH AS FOLLOWS:
1. The Employee hereby undertakes to immediately pay to XYZ, Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee Cheque/Demand Draft drawn in favor of XYZ for liquidated damages; if the Employee fails or refuses to join XYZ after signing and executing this Bond and within the specified time or if the employee leaves the employment for any reason whatsoever, or if XYZ terminates him/her from employment for any valid reason whatsoever, including but not limited to his/her misconduct, fraudulent/dishonest/undisciplined/arrogant behavior, uninformed absenteeism, irregularity in attending office, misappropriation or misuse of any information or property of the company or its clients/associates, any kind of insubordination, any breach of the company's policies or applicable laws, very bad or poor work performance, embezzlement, an employee being declared insolvent or convicted for the offense involving moral turpitude, if an employee involves himself/herself in anything which is against the interest of the company and for such other reasons of similar nature or otherwise which the Company may think fit; before completion of 36 (Thirty-Six) months from the date of commencement of the employment.
2. The Employee hereby unconditionally and irrevocably guarantees and undertakes that the employee shall sign and submit this bond in the specified time and must join XYZ in the specified time and shall not leave the employment for any reason whatsoever, or XYZ must not have terminated him/her from employment for any reason whatsoever, including but not limited to his/her misconduct, fraudulent/dishonest/undisciplined/arrogant behavior, uninformed absenteeism, irregularity in attending office, misappropriation or misuse of any information or property of the company or its clients/associates, any kind of insubordination, any breach of the company's policies or applicable laws, very bad or poor work performance, embezzlement, an employee being declared insolvent or convicted for the offense involving moral turpitude, if an employee involves himself/herself in anything which is against the interest of the company and for such other reasons of similar nature or otherwise which the Company may think fit; before completion of 36 (Thirty-Six) months from the date of commencement of the employment.
3. If any condition mentioned in point 2 hereinabove is breached, then the Employee agrees, undertakes, and unconditionally and irrevocably guarantees that it shall immediately pay XYZ the amount to the tune of Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee Cheque/Demand Draft drawn in favor of XYZ. If specifically demanded by the Company, the Employee hereby undertakes to submit such a cheque in advance to the Company, and the Company shall cash the same in case the employee breaches any terms of this agreement and/or other employment rules.
4. The Employee hereto agrees, confirms, accepts at free will, and undertakes that if the employee fails or refuses to join XYZ after signing this agreement and within the specified time or leaves XYZ for any reason whatsoever and/or if XYZ terminates the employee for any reason whatsoever as mentioned in the clauses above; before completion of 36 (Thirty-Six) months from the date of commencement of the employment; the Employee shall immediately, without protest or demur and notwithstanding any contestation or existence of any dispute whatsoever between XYZ and the employee, pay to XYZ forthwith the sums so demanded.
5. Any neglect or forbearance or delay on the part of XYZ in enforcing its rights under this agreement and/or any change in the terms and conditions mutually agreed between XYZ and the employee shall not in any way release or discharge the Employee from its obligations and liabilities under this guarantee.
6. A demand/communication/notice in writing to the Employee by XYZ that there has been a default/breach of the condition of employment by the employee shall be conclusive, final, and binding on the Employee, and upon receipt of such demand/communication/notice in writing, the Employee shall immediately pay XYZ a sum of Rs. 2,00,000/- (Rs. Two Lakh only). Any communication/notice by way of request and demand or otherwise hereunder may be sent by registered A.D. post or any other mode of communication, including but not limited to e-mail, fax, and courier, to the same address of the Employee as aforesaid. If sent by Registered Post, it shall be deemed to have been given at the time when it would have been delivered in the course of Registered A.D. post, and in providing such notice, when given by registered A.D. post, it shall be sufficient to prove that the envelope containing the notice was posted, and a certificate signed by an officer of XYZ that the envelope was posted shall suffice.
7. This guarantee shall be valid till 30/06/2018 or till the time demand is raised by XYZ and payment is made by the Employee, whichever is earlier.
8. This Agreement may be amended, supplemented, or modified only by a written instrument duly executed by or on behalf of each party hereto.
9. If any provisions of this Agreement shall be determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby. The parties agree to renegotiate in good faith any term held invalid and be bound by the mutually agreed substitute provision.
The parties hereto shall use their best efforts to settle amicably all disputes, including any unresolved controversy or dispute arising out of or in connection with the existence, interpretation, performance, or termination of this Agreement, arising out of or in connection with this Agreement ("Dispute") in the manner specified in this Section.
- The party raising the Dispute shall address to the other party a notice requesting an amicable settlement of the Dispute.
- The Dispute will be referred for resolution between the corresponding Authorized personnel of either party. The Dispute will then be resolved by them, and the agreed course of action will be documented within a period of ten business days from the date of receipt of the reference.
In the event the Parties are not able to amicably resolve and settle the disputes/differences under the procedure mentioned above, the dispute/difference shall be referred to arbitration by a single arbitrator to be jointly appointed. In the event the Parties fail to concur in appointing the sole arbitrator, the arbitrator shall be appointed in accordance with the provisions of the Arbitration & Conciliation Act. The arbitration shall be conducted in accordance with the Arbitration & Conciliation Act, for the time being in force or any statutory modification or re-enactment thereof. The place of Arbitration shall be Mumbai. The language of the Arbitration shall be English. The award of the arbitrator shall be final and binding upon the parties herein.
11. This Agreement shall be construed according to the law of India, and the parties submit to the Jurisdiction of the Courts at Mumbai and Courts superior thereto.
12. The Employee hereby states, agrees, and confirms that he/she has clearly understood the provisions of this agreement and he/she accepts the same with clear understanding and at his/her free will and accepts the same without any force, coercion, undue influence, misrepresentation, and mistake.
IN WITNESS WHEREOF, the parties have set their hands and executed this Guarantee Agreement to be effective from the date mentioned on the first page hereof.
Read, understood, accepted, and confirmed:
Mr./Ms. _________________________________________ authorized representative of XYZ Mr./Ms __________________________________________ the Employee
Questions:
1. Is this bond legal, and most importantly, is this regarded as a one-sided agreement?
2. Also, I was supposed to send the bond with the acceptance of the offer. I did send the acceptance, but it wasn't what they sent me. I had a soft copy of it which had a watermark of the company, and I printed that and sent it. So the acceptance that I sent is not the original that I was supposed to send. Is that valid?
Thanks in advance for your help.
From India, Mumbai
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Employment Bond Agreement
This Employment Bond Agreement is entered into on this ______________ at XYZ (for the sake of brevity hereinafter referred to as XYZ), a company incorporated under the provisions of the Companies Act, 1956, having its registered office at ABC (which expression shall, unless repugnant to the context or meaning, include its successors and assigns).
And Mr. ________________________ S/o. ______________, an Indian resident, aged about ____________, having a permanent address at ______________ and currently residing at ______________, having PAN _________________, hereinafter referred to as the employee (which expression shall, unless repugnant to the context or meaning, include its successors and assigns).
WHEREAS XYZ is the Company engaged in the business of PQR, and WHEREAS the Employee is employed with XYZ as a Trainee Software Engineer since ____________.
AND WHEREAS the Company, based on the willingness, representation, request, and promises of the Employee, has agreed to spend valuable management time, efforts, scarce resources, and money for inculcating and developing the Employee as an employee with the requisite skills, for continuing his employment with the Company.
AND WHEREAS the Company and the Employee voluntarily agree that after the said Training, it is necessary for the Employee to work for the Company for at least a certain minimum period in order to compensate the Company for the expenses incurred and other resources spent for providing the said Training upon the terms and conditions stated hereinafter.
AND WHEREAS it is one of the conditions upon which the Employee would be imparted training and offered employment is that the Employee must sign and submit the Employment Bond Agreement within 15 (Fifteen) days from the date of receiving the offer letter and must join XYZ within the given time and shall not leave the employment for any reason whatsoever, or XYZ must not have terminated his/her employment with XYZ for any reason whatsoever for a period of 36 (Thirty-Six) months from the date of commencement of the employment; as a security for liquidated damages in case of breach of the condition mentioned in this paragraph. This BOND shall remain valid till the completion of 36 (Thirty-Six) months of employment of the candidate with XYZ.
AND WHEREAS the said employee is desirous to join XYZ and undergo XYZ’s training program and hence has agreed to sign and execute this Employment Bond Agreement in favor of XYZ by making all necessary arrangements.
NOW THIS AGREEMENT IS WITNESSTH AS FOLLOWS:
1. The Employee hereby undertakes to immediately pay to XYZ, Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee Cheque/Demand Draft drawn in favor of XYZ for liquidated damages; if the Employee fails or refuses to join XYZ after signing and executing this Bond and within the specified time or if the employee leaves the employment for any reason whatsoever, or if XYZ terminates him/her from employment for any valid reason whatsoever, including but not limited to his/her misconduct, fraudulent/dishonest/undisciplined/arrogant behavior, uninformed absenteeism, irregularity in attending office, misappropriation or misuse of any information or property of the company or its clients/associates, any kind of insubordination, any breach of the company's policies or applicable laws, very bad or poor work performance, embezzlement, an employee being declared insolvent or convicted for the offense involving moral turpitude, if an employee involves himself/herself in anything which is against the interest of the company and for such other reasons of similar nature or otherwise which the Company may think fit; before completion of 36 (Thirty-Six) months from the date of commencement of the employment.
2. The Employee hereby unconditionally and irrevocably guarantees and undertakes that the employee shall sign and submit this bond in the specified time and must join XYZ in the specified time and shall not leave the employment for any reason whatsoever, or XYZ must not have terminated him/her from employment for any reason whatsoever, including but not limited to his/her misconduct, fraudulent/dishonest/undisciplined/arrogant behavior, uninformed absenteeism, irregularity in attending office, misappropriation or misuse of any information or property of the company or its clients/associates, any kind of insubordination, any breach of the company's policies or applicable laws, very bad or poor work performance, embezzlement, an employee being declared insolvent or convicted for the offense involving moral turpitude, if an employee involves himself/herself in anything which is against the interest of the company and for such other reasons of similar nature or otherwise which the Company may think fit; before completion of 36 (Thirty-Six) months from the date of commencement of the employment.
3. If any condition mentioned in point 2 hereinabove is breached, then the Employee agrees, undertakes, and unconditionally and irrevocably guarantees that it shall immediately pay XYZ the amount to the tune of Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee Cheque/Demand Draft drawn in favor of XYZ. If specifically demanded by the Company, the Employee hereby undertakes to submit such a cheque in advance to the Company, and the Company shall cash the same in case the employee breaches any terms of this agreement and/or other employment rules.
4. The Employee hereto agrees, confirms, accepts at free will, and undertakes that if the employee fails or refuses to join XYZ after signing this agreement and within the specified time or leaves XYZ for any reason whatsoever and/or if XYZ terminates the employee for any reason whatsoever as mentioned in the clauses above; before completion of 36 (Thirty-Six) months from the date of commencement of the employment; the Employee shall immediately, without protest or demur and notwithstanding any contestation or existence of any dispute whatsoever between XYZ and the employee, pay to XYZ forthwith the sums so demanded.
5. Any neglect or forbearance or delay on the part of XYZ in enforcing its rights under this agreement and/or any change in the terms and conditions mutually agreed between XYZ and the employee shall not in any way release or discharge the Employee from its obligations and liabilities under this guarantee.
6. A demand/communication/notice in writing to the Employee by XYZ that there has been a default/breach of the condition of employment by the employee shall be conclusive, final, and binding on the Employee, and upon receipt of such demand/communication/notice in writing, the Employee shall immediately pay XYZ a sum of Rs. 2,00,000/- (Rs. Two Lakh only). Any communication/notice by way of request and demand or otherwise hereunder may be sent by registered A.D. post or any other mode of communication, including but not limited to e-mail, fax, and courier, to the same address of the Employee as aforesaid. If sent by Registered Post, it shall be deemed to have been given at the time when it would have been delivered in the course of Registered A.D. post, and in providing such notice, when given by registered A.D. post, it shall be sufficient to prove that the envelope containing the notice was posted, and a certificate signed by an officer of XYZ that the envelope was posted shall suffice.
7. This guarantee shall be valid till 30/06/2018 or till the time demand is raised by XYZ and payment is made by the Employee, whichever is earlier.
8. This Agreement may be amended, supplemented, or modified only by a written instrument duly executed by or on behalf of each party hereto.
9. If any provisions of this Agreement shall be determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby. The parties agree to renegotiate in good faith any term held invalid and be bound by the mutually agreed substitute provision.
The parties hereto shall use their best efforts to settle amicably all disputes, including any unresolved controversy or dispute arising out of or in connection with the existence, interpretation, performance, or termination of this Agreement, arising out of or in connection with this Agreement ("Dispute") in the manner specified in this Section.
- The party raising the Dispute shall address to the other party a notice requesting an amicable settlement of the Dispute.
- The Dispute will be referred for resolution between the corresponding Authorized personnel of either party. The Dispute will then be resolved by them, and the agreed course of action will be documented within a period of ten business days from the date of receipt of the reference.
In the event the Parties are not able to amicably resolve and settle the disputes/differences under the procedure mentioned above, the dispute/difference shall be referred to arbitration by a single arbitrator to be jointly appointed. In the event the Parties fail to concur in appointing the sole arbitrator, the arbitrator shall be appointed in accordance with the provisions of the Arbitration & Conciliation Act. The arbitration shall be conducted in accordance with the Arbitration & Conciliation Act, for the time being in force or any statutory modification or re-enactment thereof. The place of Arbitration shall be Mumbai. The language of the Arbitration shall be English. The award of the arbitrator shall be final and binding upon the parties herein.
11. This Agreement shall be construed according to the law of India, and the parties submit to the Jurisdiction of the Courts at Mumbai and Courts superior thereto.
12. The Employee hereby states, agrees, and confirms that he/she has clearly understood the provisions of this agreement and he/she accepts the same with clear understanding and at his/her free will and accepts the same without any force, coercion, undue influence, misrepresentation, and mistake.
IN WITNESS WHEREOF, the parties have set their hands and executed this Guarantee Agreement to be effective from the date mentioned on the first page hereof.
Read, understood, accepted, and confirmed:
Mr./Ms. _________________________________________ authorized representative of XYZ Mr./Ms __________________________________________ the Employee
Questions:
1. Is this bond legal, and most importantly, is this regarded as a one-sided agreement?
2. Also, I was supposed to send the bond with the acceptance of the offer. I did send the acceptance, but it wasn't what they sent me. I had a soft copy of it which had a watermark of the company, and I printed that and sent it. So the acceptance that I sent is not the original that I was supposed to send. Is that valid?
Thanks in advance for your help.
From India, Mumbai
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Most of the agreements like this are one-sided. Obviously, the company would like to have a foolproof agreement. The bond is legal to the extent that if liquidated damages are challenged, they may not be Rs200,000 but a lower amount based on an assessment of the training expenditure incurred by the company. Secondly, if you have made any changes to the clauses, the company is likely to reject the agreement. Think carefully about all angles and join. If needed, check with an advocate.
From India, Pune
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3180From India, Pune
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Offer acceptance letter.zip
Employment Agreement.pdf
Employment Agreement.doc