Indemnity Bond Issue with PSU Bank
PSU Bank's offer letter stated the place of posting as Hyderabad. I left my well-paying IT job to join there. During the 3-day induction, I signed an indemnity bond of INR 1 Lakh. When I went to the Hyderabad branch, I was asked to join 250 km away from Hyderabad in the remotest village. I objected and resigned on the spot. I was asked to pay 1 Lakh INR, without which HR said they cannot process the resignation.
I knew I had already signed the indemnity bond and had to pay, so I requested an arrangement to pay in installments or staggered payments. The bank refused and demanded the payment in one lump sum.
Seeking Advice on Payment Options
What are my options? Please help. In reply to the latest email received, I have reiterated my intent to solve it amicably and again stressed that due to my financial condition, I cannot pay in one lump sum and stated that I am open to flexible options like staggered or installment payments.
Please help me. I need advice. Will a money recovery suit be filed? What happens now, and how can I best handle this scenario?
From India, Mumbai
Acknowledge(0)
Amend(0)
PSU Bank's offer letter stated the place of posting as Hyderabad. I left my well-paying IT job to join there. During the 3-day induction, I signed an indemnity bond of INR 1 Lakh. When I went to the Hyderabad branch, I was asked to join 250 km away from Hyderabad in the remotest village. I objected and resigned on the spot. I was asked to pay 1 Lakh INR, without which HR said they cannot process the resignation.
I knew I had already signed the indemnity bond and had to pay, so I requested an arrangement to pay in installments or staggered payments. The bank refused and demanded the payment in one lump sum.
Seeking Advice on Payment Options
What are my options? Please help. In reply to the latest email received, I have reiterated my intent to solve it amicably and again stressed that due to my financial condition, I cannot pay in one lump sum and stated that I am open to flexible options like staggered or installment payments.
Please help me. I need advice. Will a money recovery suit be filed? What happens now, and how can I best handle this scenario?
From India, Mumbai
Acknowledge(0)Amend(0)
There is no room for negotiation in PSUs because they are governed by policy guidelines. If the policy guidelines state it has to be paid in one shot, then it has to be done so unless there is a court judgment supporting your proposition.
From United+States, San+Francisco
Acknowledge(0)Amend(0)
9From United+States, San+Francisco
Acknowledge(0)Amend(0)
Understanding Indemnity Bonds and Employee Agreements
On what grounds was the indemnity bond signed? Bonds and agreements to withhold an employee are illegal. The company can recover the actual cost of any training provided to an employee through these bonds/agreements. Did the company provide you with any such training? If not, why is the company asking for money?
Nevertheless, the company can file a lawsuit before the court to recover the money, but they will not have much of a chance if you fight properly. Let the company demand Rs. 1 lakh in writing, and then you can start defending yourself, perhaps with the assistance of a lawyer. If you have already started communicating, be careful with each and every word. All future communications should be in writing.
From India, Kolkata
Acknowledge(1)
Amend(0)
On what grounds was the indemnity bond signed? Bonds and agreements to withhold an employee are illegal. The company can recover the actual cost of any training provided to an employee through these bonds/agreements. Did the company provide you with any such training? If not, why is the company asking for money?
Nevertheless, the company can file a lawsuit before the court to recover the money, but they will not have much of a chance if you fight properly. Let the company demand Rs. 1 lakh in writing, and then you can start defending yourself, perhaps with the assistance of a lawyer. If you have already started communicating, be careful with each and every word. All future communications should be in writing.
From India, Kolkata
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Indemnity Bond - Format.doc
Ordinance of Maharashtra Govt for HRA Payment by Cheque or Bank Credit.pdf