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Grat123
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 acceptance of offer to the company but I have not yet joined the company.

Here is the bond in question:

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 Companies Act, 1956 having its

registered office at ABC (which expression shall unless repugnant to the context or meaning include

And Mr. ________________________ S/o. ______________, an Indian resident, aged about

____________, having 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

WHEREAS XYZ is the Company engaged in the business of PQR and

WHEREAS the Employee is employed with the XYZ as 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 of the requisites skills,

for continuing his employment with the Company.

AND WHEREAS the Company and the Employee voluntarily agrees that after the said Training

it is necessary for the Employee to work for the Company at least for 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 offer letter and must join

XYZ within 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 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 the

favour of XYZ by making all necessary arrangement.

NOW THIS AGREEMENT IS WITNESSTH AS FOLLOWS:

1. Employee hereby undertakes to immediately pay to XYZ, Rs. 2,00,000/-

(Rs. Two Lakh only) by Account Payee Cheque/ Demand Draft drawn in the favour of XYZ

for liquidated damages; if Employee fails or refuses to join the XYZ after signing and

executing this Bond and within specified time or employee leaves the employment for any

reason whatsoever or 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 it\'s clients /

associates, any kind of insubordination, any breach of company\'s policies or applicable

laws, very bad or poor work performance, embezzlement, an employee being declared

insolvent or convicted for the offence involving moral turpitude, if an employee involve

himself / herself in anything which is against the interest of the company and for such other

reasons of similar nature or otherwise which Company may think fit; before completion of 36

(Thirty Six) months from the date of commencement of the employment.

2. Employee hereby unconditionally and irrevocably guarantee and undertake that employee

shall sign and submit this bond in specified time and must join the XYZ in 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 it\'s clients / associates, any kind of insubordination, any

breach of company\'s policies or applicable laws, very bad or poor work performance,

embezzlement, an employee being declared insolvent or convicted for the offence involving

moral turpitude, if an employee involve himself / herself in anything which is against the

interest of the company and for such other reasons of similar nature or otherwise which

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 Employee agrees,

undertakes and unconditionally and irrevocably guarantees that it shall immediately pay the

XYZ the amount of to the tune of Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee

Cheque / Demand Draft drawn in the favour of XYZ. If specifically demanded by the

Company, Employee hereby undertakes to submit such cheque in advance to the Company,

and Company shall cash the same in case the employee breaches any terms of this

agreement and / or other employment rules.

4. The Employee hereto agree, confirm, accept at free will and undertake that if employee fails

or refuses to join the XYZ after signing this agreement and within specified time or leaves

the 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; Employee shall immediately

without protest or demur and notwithstanding any contestation or existence of any dispute

whatsoever between XYZ and employee; pay to XYZ forthwith the sums so demanded.

5. Any neglect or forbearance or delay on the part of XYZ in enforcing it’s rights under this

agreement and / or any change in the terms and conditions mutually agreed between

XYZ and 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

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, Employee shall immediately pay the XYZ a sum of Rs. 2,00,000/- (Rs. Two Lakh

Any communication / notice by way of request and demand or otherwise hereunder, may be

send by registered A.D. post or any other mode of communication including but not limited

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 shall be sufficient to prove that the envelope containing the notice was

posted and certificate signed by an office or XYZ that the envelope was posted shall

7. This guarantee shall be valid till 30/06/2018 or till the time demand is raised by XYZ and

payment is made by 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

found 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 the 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. 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 first page hereof.

Read, understood, accepted and confirmed:

Mr/Ms. _________________________________________ authorised representative of XYZ

Mr/Ms __________________________________________ the Employee

Now what I want to know

1. Is this bond legal and most importantly is this regarded a one-sided agreement?

2. Also I was supposed to send the bond with the acceptance of 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. So the acceptance that I sent is not the original what I was supposed to send so is that valid?

Thanks in advance for your help

From India, Mumbai
nathrao
3131

Most of the agreement like this are one sided.
Obviously the company will like to have foolproof agreement.
Bond is legal to the extent that liquidated damages if challenged may not be Rs200000 but lower amount based on assessment of training expenditure incurred by company.
Secondly if you have made any changes to the clauses,the company is likely to reject the agreement.
Think carefully all angles and join.
If needed check with an advocate.

From India, Pune
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