Hi,
I joined a software company as a trainee and as a fresher, but with a bond of 2 years. This bond is not on legal paper but only on the company's letter pad. Under this bond, the company has taken all my original certificates (from 10th to my post-graduation) to be kept by the company for a minimum period of 2 years. If I leave the company before 2 years, I have to give back all the salary I received from the company. The company can terminate my employment with just a 1-month notice. My training salary is 5500rs, as mentioned in the bond papers, and after completing 3 months of training, I only received a 1000rs increment.
The company made a lot of promises regarding my growth within the company when I joined, but none of these were put in writing (they were verbal assurances). After starting at the company, I realized that there were no good career prospects for me here.
Therefore, I resigned immediately after 8 months and 3 days and joined another company. However, I left behind my salary for 1 month and 6 days (which the company did not transfer to my account). I also provided training to another person based on the work I did in the last 8 months at the company, as mentioned in my resignation letter.
Even after 21 days since my departure, the company has not returned my original certificates. Instead, I received a legal notice from the company demanding the repayment of the salary for the entire two years, threatening legal action if I do not comply.
What should be my next step?
From India, Ambala
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I joined a software company as a trainee and as a fresher, but with a bond of 2 years. This bond is not on legal paper but only on the company's letter pad. Under this bond, the company has taken all my original certificates (from 10th to my post-graduation) to be kept by the company for a minimum period of 2 years. If I leave the company before 2 years, I have to give back all the salary I received from the company. The company can terminate my employment with just a 1-month notice. My training salary is 5500rs, as mentioned in the bond papers, and after completing 3 months of training, I only received a 1000rs increment.
The company made a lot of promises regarding my growth within the company when I joined, but none of these were put in writing (they were verbal assurances). After starting at the company, I realized that there were no good career prospects for me here.
Therefore, I resigned immediately after 8 months and 3 days and joined another company. However, I left behind my salary for 1 month and 6 days (which the company did not transfer to my account). I also provided training to another person based on the work I did in the last 8 months at the company, as mentioned in my resignation letter.
Even after 21 days since my departure, the company has not returned my original certificates. Instead, I received a legal notice from the company demanding the repayment of the salary for the entire two years, threatening legal action if I do not comply.
What should be my next step?
From India, Ambala
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Hi,
The policy of every company is that if you have accepted the offer letter, it is agreed that you have accepted the norms and policies of that company. So, if the company has a bond of 2 years, you need to abide by it. If you break the bond, you will need to pay back the service agreement. If you leave the company within these 2 years, you will need to pay the service agreement.
Regarding the increment, the company cannot give you a specified amount that will be paid to you because it depends on the performance you show and the rating for which you will get the increment.
So, there is no point in you going to court; you would actually be fighting a losing battle.
Regards,
Vivek
From India, Bangalore
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1The policy of every company is that if you have accepted the offer letter, it is agreed that you have accepted the norms and policies of that company. So, if the company has a bond of 2 years, you need to abide by it. If you break the bond, you will need to pay back the service agreement. If you leave the company within these 2 years, you will need to pay the service agreement.
Regarding the increment, the company cannot give you a specified amount that will be paid to you because it depends on the performance you show and the rating for which you will get the increment.
So, there is no point in you going to court; you would actually be fighting a losing battle.
Regards,
Vivek
From India, Bangalore
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Rohit,
Some companies have incorporated these kinds of clauses to counter the high staff attrition, which hurts small companies more. After all, they are taking a risk by hiring someone who has no prior work experience, a risk that is easier for large companies to handle than small companies that depend on every employee performing as much as they can.
Whether such agreements are justified is a debate for another time, but based on what you have written, the following points come to mind: 1) it is always better to do research about a company that one is planning to join; 2) be careful about what you sign; and 3) 8 months seems too short a time for you to decide that there will be no growth there for you.
You can try talking to the management of your ex-company to see if some compromise can be worked out.
From India, Jaipur
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Some companies have incorporated these kinds of clauses to counter the high staff attrition, which hurts small companies more. After all, they are taking a risk by hiring someone who has no prior work experience, a risk that is easier for large companies to handle than small companies that depend on every employee performing as much as they can.
Whether such agreements are justified is a debate for another time, but based on what you have written, the following points come to mind: 1) it is always better to do research about a company that one is planning to join; 2) be careful about what you sign; and 3) 8 months seems too short a time for you to decide that there will be no growth there for you.
You can try talking to the management of your ex-company to see if some compromise can be worked out.
From India, Jaipur
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Thanks for your reply, but I have a lot of reasons for resigning:
1. I want to continue my studies through distance education, but the company did not provide my certificate within a short period so I can submit it to the university for admission.
2. I was working in the testing field (manual testing) and I want to shift to development. The company is willing to shift me but requires me to sign a 2-year bond again, which I do not want to do.
3. A replacement for my position has already been found within this period and I have been asked to train them.
4. I provided her with a full month of training. She is now capable of doing everything I did.
5. The salary is not sufficient.
6. The atmosphere of the company was not good; it felt more like a shop.
7. I feel like I have wasted 8 months in this company.
8. I do not want to further damage my career by staying in this company, but the problem is that I do not have any written proof of these issues.
From India, Ambala
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1. I want to continue my studies through distance education, but the company did not provide my certificate within a short period so I can submit it to the university for admission.
2. I was working in the testing field (manual testing) and I want to shift to development. The company is willing to shift me but requires me to sign a 2-year bond again, which I do not want to do.
3. A replacement for my position has already been found within this period and I have been asked to train them.
4. I provided her with a full month of training. She is now capable of doing everything I did.
5. The salary is not sufficient.
6. The atmosphere of the company was not good; it felt more like a shop.
7. I feel like I have wasted 8 months in this company.
8. I do not want to further damage my career by staying in this company, but the problem is that I do not have any written proof of these issues.
From India, Ambala
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The Maharashtra Shops And Establishments (Regulation Of Employment And Conditions Of Service) Ac.pdf
Service agreement.doc