Hi
I am employed with a reputed mid-sized IT services company in Pune. Mine was campus recruitment and at the time of joining, my father was made to sign a bond stating that I shall continue to work with them for 2 years or pay Rs 2 Lacs if I quit before that.
I signed the joining letters in good faith.
The promised training was only a one month session and after that for the past one year I am yet to be assigned to a real project. No wonder I did not get an appraisal because I never worked on a billable project. That apart I have by large enjoyed my association with my colleagues and seniors.
Of late the company HR has been asking all employees to sign a “No Hire” clause which states employees cannot join any client, client competitor and so on for a period of one year from the date I leave the company. I am not convinced by this restrictive clause and feel this will stifle my already stagnating career. I have avoided signing it but now the HR has been pressurizing me and at time making veiled threats – we will make your exit procedure difficult, etc. I am totally stressed and discomforted by this and finally had no choice but to resign citing the mentioned reason. They are yet to reply or accept my letter.
Now the threats have increased and I am being warned of legal notice, withholding my salary/PF, experience letter, relieving letter, etc. I feel victimized because of my refusal to sign addendums to the hire letter. This unprofessional behavior by a certain section of the company surprises me as I have always put my best for the company and have been appreciated for my work earlier.
I continue to go on doing my work as usual but feel the pressure and an environment of threat.
Was I right in refusing to sign a one-sided clause and resigning on those grounds?
Please suggest what would be my options in such condition.
Thanks,
Roshan
From Japan
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I am employed with a reputed mid-sized IT services company in Pune. Mine was campus recruitment and at the time of joining, my father was made to sign a bond stating that I shall continue to work with them for 2 years or pay Rs 2 Lacs if I quit before that.
I signed the joining letters in good faith.
The promised training was only a one month session and after that for the past one year I am yet to be assigned to a real project. No wonder I did not get an appraisal because I never worked on a billable project. That apart I have by large enjoyed my association with my colleagues and seniors.
Of late the company HR has been asking all employees to sign a “No Hire” clause which states employees cannot join any client, client competitor and so on for a period of one year from the date I leave the company. I am not convinced by this restrictive clause and feel this will stifle my already stagnating career. I have avoided signing it but now the HR has been pressurizing me and at time making veiled threats – we will make your exit procedure difficult, etc. I am totally stressed and discomforted by this and finally had no choice but to resign citing the mentioned reason. They are yet to reply or accept my letter.
Now the threats have increased and I am being warned of legal notice, withholding my salary/PF, experience letter, relieving letter, etc. I feel victimized because of my refusal to sign addendums to the hire letter. This unprofessional behavior by a certain section of the company surprises me as I have always put my best for the company and have been appreciated for my work earlier.
I continue to go on doing my work as usual but feel the pressure and an environment of threat.
Was I right in refusing to sign a one-sided clause and resigning on those grounds?
Please suggest what would be my options in such condition.
Thanks,
Roshan
From Japan
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Dear Mr. Roshan,
My advice to you is that even if you had signed that "No Hire" document, who is behind you to find out where you have joined or will be joining unless and until you reveal it. The second part of the bond is not to receive any communication that comes from their end. Just relax; nobody can do anything to you. As far as PF is concerned, simply fill out Form 19 and 10C and send it to your old office for processing at the PF office. If you do not hear anything within 3 months, file a complaint with the Regional PF office that your old employer has not processed the PF sent by you.
Thank you,
Sanjeev Kumar HR Professional
From India, Delhi
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7My advice to you is that even if you had signed that "No Hire" document, who is behind you to find out where you have joined or will be joining unless and until you reveal it. The second part of the bond is not to receive any communication that comes from their end. Just relax; nobody can do anything to you. As far as PF is concerned, simply fill out Form 19 and 10C and send it to your old office for processing at the PF office. If you do not hear anything within 3 months, file a complaint with the Regional PF office that your old employer has not processed the PF sent by you.
Thank you,
Sanjeev Kumar HR Professional
From India, Delhi
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Thank you, Sanjeev.
But I did not find it ethical to sign that "No hire" clause. Who knows, another year down the line, they may impose further new clauses that could harm my career if I agree now. I was rather peeved by the attitude of the HR person who blankly threatened me for signing it. What followed is simply unacceptable.
Now, my worry is about the 2 Lac bond notice they are threatening to claim. Since this is my first job, I am also concerned about the experience letter, which they say they will not issue.
From Japan
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But I did not find it ethical to sign that "No hire" clause. Who knows, another year down the line, they may impose further new clauses that could harm my career if I agree now. I was rather peeved by the attitude of the HR person who blankly threatened me for signing it. What followed is simply unacceptable.
Now, my worry is about the 2 Lac bond notice they are threatening to claim. Since this is my first job, I am also concerned about the experience letter, which they say they will not issue.
From Japan
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Hi Roshan,
The first and foremost thing, I am surprised how an employee can sign a "No Hire" clause. This is actually signed between the employer (your company) and the client, stating that they will not hire employees from your organization.
But even if your employer is asking you for it, no issues, go ahead and sign it. (I agree with Sanjeev on this; who knows whom you joined, they can't do anything to you.) But later, if they ask you to sign another bond, just check your current bond for any clause that states the employer can extend the bond period. If not, then never sign any other bond later.
Even if you break the bond, your employer may hardly take any legal action against you. It's tedious work.
Also, since you have submitted your resignation, start searching for a good job. Try to leave the company on a good note, maintain good relations with HR, your manager, and colleagues. Later, during the verification process at your new company, these people can help you. Don't worry, be happy.
Search for a good job and leave at the appropriate time.
Wishing you luck.
Best Regards,
Gladys
From India, Mumbai
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The first and foremost thing, I am surprised how an employee can sign a "No Hire" clause. This is actually signed between the employer (your company) and the client, stating that they will not hire employees from your organization.
But even if your employer is asking you for it, no issues, go ahead and sign it. (I agree with Sanjeev on this; who knows whom you joined, they can't do anything to you.) But later, if they ask you to sign another bond, just check your current bond for any clause that states the employer can extend the bond period. If not, then never sign any other bond later.
Even if you break the bond, your employer may hardly take any legal action against you. It's tedious work.
Also, since you have submitted your resignation, start searching for a good job. Try to leave the company on a good note, maintain good relations with HR, your manager, and colleagues. Later, during the verification process at your new company, these people can help you. Don't worry, be happy.
Search for a good job and leave at the appropriate time.
Wishing you luck.
Best Regards,
Gladys
From India, Mumbai
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Hi Gladys,
That is the first thing I told them about the "No Hire" clause!! But as I said, what drove me to resign was the behavior and verbal threats from the HR. It was a shock to me that HR can speak in such rude and abusive language. Also, they will find out about my new employer when the new employer runs a background check.
I have already submitted my resignation and I am currently serving the notice period. However, given the intimidating environment, I am really feeling depressed. I have also read on some blogs that without a relieving letter, I cannot be hired by any major IT companies and will be ineligible for any overseas assignments in the future.
I was the only hope in my family, and it seems my dreams are shattered. :(
From Japan
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That is the first thing I told them about the "No Hire" clause!! But as I said, what drove me to resign was the behavior and verbal threats from the HR. It was a shock to me that HR can speak in such rude and abusive language. Also, they will find out about my new employer when the new employer runs a background check.
I have already submitted my resignation and I am currently serving the notice period. However, given the intimidating environment, I am really feeling depressed. I have also read on some blogs that without a relieving letter, I cannot be hired by any major IT companies and will be ineligible for any overseas assignments in the future.
I was the only hope in my family, and it seems my dreams are shattered. :(
From Japan
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Hi Roshe,
Don't be tense...nothing much happens related to a relieving letter. Regarding your HR, don't worry. Be sure that the new company you join, you tell them about your joining issues after you get the offer from them.
The new company will:
1) First look at your skills.
2) If they find you good, they will select you and give you the offer.
3) If you are selected, it would be amongst many candidates.
So, at that moment, if you tell them your dilemma, they will understand your issue, and then it may not create many issues. Later, what works is your last employer's relieving letter. I don't think any company asks for a relieving letter from all previous employers.
So, don't worry, get a new job, and join them at the earliest. Be a boon for your parents. :)
Regards,
Gladys
From India, Mumbai
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Don't be tense...nothing much happens related to a relieving letter. Regarding your HR, don't worry. Be sure that the new company you join, you tell them about your joining issues after you get the offer from them.
The new company will:
1) First look at your skills.
2) If they find you good, they will select you and give you the offer.
3) If you are selected, it would be amongst many candidates.
So, at that moment, if you tell them your dilemma, they will understand your issue, and then it may not create many issues. Later, what works is your last employer's relieving letter. I don't think any company asks for a relieving letter from all previous employers.
So, don't worry, get a new job, and join them at the earliest. Be a boon for your parents. :)
Regards,
Gladys
From India, Mumbai
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Hi Roshe,
Before I comment on your situation, I would like to know a few things:
1. What is the strength of your company (approximately)?
2. What is the clause based on which you have signed this financial bond?
3. Did the first contract that you have signed say anything about the "no hire" policy?
Thanks and Regards,
Indrani Chakraborty
From India, Pune
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Before I comment on your situation, I would like to know a few things:
1. What is the strength of your company (approximately)?
2. What is the clause based on which you have signed this financial bond?
3. Did the first contract that you have signed say anything about the "no hire" policy?
Thanks and Regards,
Indrani Chakraborty
From India, Pune
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Dear Friend, There is no bonded labour system in our country. These bonds have no legal value.
From India, Pune
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From India, Pune
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Hi Roshan,
My advice would be to sign the document as it's the responsibility of the company to place you. In such situations, you should show your commitment to the company. As Sanjeev said, it's not going to affect you. I believe one year is easy to get by. Probably at this juncture, they may place you at the right opportunity.
Think about it.
From India, Srikakulam
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My advice would be to sign the document as it's the responsibility of the company to place you. In such situations, you should show your commitment to the company. As Sanjeev said, it's not going to affect you. I believe one year is easy to get by. Probably at this juncture, they may place you at the right opportunity.
Think about it.
From India, Srikakulam
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Hi Indrani,
1. What is the strength of your company (approximately 2000)?
2. What is the clause based on which you have signed this financial bond?
I shall be trained in the company, and as surety, I will need to continue to work for 2 years or shall pay Rs 2L if I quit before that time.
3. Did the first contract that you have signed say anything about the "no hire" Policy?
No such clauses in the original hire/contract. The point is I am stagnating here and am yet to be assigned to any project. I have another 10 months left and was hoping to get off at the end of it. But now, these new terms will mean that even if I leave, I will be severely restricted in the companies which I can join for another 1 year from the date of leaving. I again repeat it is no longer the additional clauses but the methods used to enforce the clause which made me take the step. My contention is I did not violate any terms, but since they are bringing new terms, I have a right to refuse and exit.
Thanks,
Roshan
From Japan
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1. What is the strength of your company (approximately 2000)?
2. What is the clause based on which you have signed this financial bond?
I shall be trained in the company, and as surety, I will need to continue to work for 2 years or shall pay Rs 2L if I quit before that time.
3. Did the first contract that you have signed say anything about the "no hire" Policy?
No such clauses in the original hire/contract. The point is I am stagnating here and am yet to be assigned to any project. I have another 10 months left and was hoping to get off at the end of it. But now, these new terms will mean that even if I leave, I will be severely restricted in the companies which I can join for another 1 year from the date of leaving. I again repeat it is no longer the additional clauses but the methods used to enforce the clause which made me take the step. My contention is I did not violate any terms, but since they are bringing new terms, I have a right to refuse and exit.
Thanks,
Roshan
From Japan
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Hi Uday,
It is not one year from now, but one year from the date I leave. A blanket "No Hire" clause is way too much - we will never know who is a client, who is a client contractor, a client competitor, is it only a client I have worked for or only the specific project I have worked for, clients of sister companies, and so on. (By the way, I am still to work on one yet).
To coerce an employee with threats of action into signing one-sided clauses is unethical. Just for getting this clause signed, the company forgot all the dedication and loyalty I had shown for the past one year. What assurance is there that they will treat me any better even if I sign now?
Thanks,
Roshan
From Japan
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It is not one year from now, but one year from the date I leave. A blanket "No Hire" clause is way too much - we will never know who is a client, who is a client contractor, a client competitor, is it only a client I have worked for or only the specific project I have worked for, clients of sister companies, and so on. (By the way, I am still to work on one yet).
To coerce an employee with threats of action into signing one-sided clauses is unethical. Just for getting this clause signed, the company forgot all the dedication and loyalty I had shown for the past one year. What assurance is there that they will treat me any better even if I sign now?
Thanks,
Roshan
From Japan
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Hi Just go a head bond holds no value in India...unless you have signed any contract which says you will be given special training outside India for imparting same with the company members..
From India
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From India
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Dear,
If they introduce a new cls, you can refuse it; it amounts to novation. As far as the bond, if they do not give you an assignment, demand it. If they are not willing to, they may relieve you of your persistence, and you can overcome the bond.
With Regards
V. Sounder Rajan
E-mail: rajanassociates@eth.net
From India, Bangalore
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If they introduce a new cls, you can refuse it; it amounts to novation. As far as the bond, if they do not give you an assignment, demand it. If they are not willing to, they may relieve you of your persistence, and you can overcome the bond.
With Regards
V. Sounder Rajan
E-mail: rajanassociates@eth.net
From India, Bangalore
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Hi Roshan,
You need not worry so much, dear. Your current HR cannot harm you. As an HR professional, I want to share a few things with you about getting a job:
- First and foremost is the attitude and potential of the person.
- Eligibility, experience, and soft skills.
I believe that if you have the above, nobody in the world can keep you away from a good job.
I agree with the previous advice; simply sign the non-hire bond and separate yourself in a harmonious manner. As for the relieving letter, it cannot hinder your employment in any major IT company.
And always remember, what happens, happens for the best because the best is waiting for you.
Regards,
Rahul Joshi
State Head - HR
From India, Jaipur
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You need not worry so much, dear. Your current HR cannot harm you. As an HR professional, I want to share a few things with you about getting a job:
- First and foremost is the attitude and potential of the person.
- Eligibility, experience, and soft skills.
I believe that if you have the above, nobody in the world can keep you away from a good job.
I agree with the previous advice; simply sign the non-hire bond and separate yourself in a harmonious manner. As for the relieving letter, it cannot hinder your employment in any major IT company.
And always remember, what happens, happens for the best because the best is waiting for you.
Regards,
Rahul Joshi
State Head - HR
From India, Jaipur
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Thank you very much for all the above discussion!!
I appreciate the reply posted by "Nitin" who resolves the issue in a single line.
Dear friend, please note that this is a universal truth as well as a country-wide prevalent law and practice. Any amendment, change, or insertion of a new clause made by one party in a contract that is already signed and agreed upon between the parties renders the contract abolished. The contract would be null and void in the eyes of the law.
For example, as per the contract, an employer is bound to pay you a monthly salary or stipend of Rs. 5000. If, after a year, your employer raises your stipend/salary to Rs. 5100 or more, that is a clear-cut change in the contract's clauses, which cancels the contract. So, you may not need to worry, just sign the paper under reference, which would later exonerate you from the liability to serve the organization for two years within the bond period, and you would be at liberty to leave your employer at any time.
Regards,
Abdul Rauf
(Okara) Pakistan.
Email: abdul.rauf@hotmail.de
Phone: +92 323 6309863
From Pakistan
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I appreciate the reply posted by "Nitin" who resolves the issue in a single line.
Dear friend, please note that this is a universal truth as well as a country-wide prevalent law and practice. Any amendment, change, or insertion of a new clause made by one party in a contract that is already signed and agreed upon between the parties renders the contract abolished. The contract would be null and void in the eyes of the law.
For example, as per the contract, an employer is bound to pay you a monthly salary or stipend of Rs. 5000. If, after a year, your employer raises your stipend/salary to Rs. 5100 or more, that is a clear-cut change in the contract's clauses, which cancels the contract. So, you may not need to worry, just sign the paper under reference, which would later exonerate you from the liability to serve the organization for two years within the bond period, and you would be at liberty to leave your employer at any time.
Regards,
Abdul Rauf
(Okara) Pakistan.
Email: abdul.rauf@hotmail.de
Phone: +92 323 6309863
From Pakistan
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Dear All, Please follow the attachment. I have prepared it for my company and now for you. you can modify as your company’s policy.
From United States, Los Angeles
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From United States, Los Angeles
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Bond of Employment.doc
Bond in employment.pdf