Dear Seniors,
Greetings!!!
I am about to join a new organization, and they have asked me to sign a SURETY BOND with them.
I would like to know if this is legal and enforceable.
The detailed Bond is as follows:
Surety Bond
This agreement is made in Delhi, on this <<date>>....between..................<<name & address>>
at present employed as <<Designation>>.... <<Employer>> (hereinafter called "the employee") of the first part; and __________________________(please give details such as name, status, etc. of the sureties) herein after called as surety presently residing at __________________________________________________ ___________of the second part and <<Company's Registered office address>> Hereinafter called the "Company" of the third part;
WHEREAS the Employee has agreed to be loyally employed with and take training by the aforesaid Company. The Employee has agreed to be employed by the company, also having agreed to terms and conditions herein after appearing and furnish a survey for fulfillment of the obligation on his part and the surety has given his consent to the same.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The Employee shall become an employee of the Company as per details of the appointment letter and remain employed with the Company for a minimum period of 12 months from the date of joining.
Signed __________________ Signed __________________
2. The Employee and the surety hereby jointly and severally agree and covenant that:
(a) During the period of training with the company or any firm or factory under or in which the employee undergoes training, the Employee shall faithfully, honestly, and diligently take training in such company, firm, or factory, keep its secrets, obey all its or its officers lawful orders and shall not directly or indirectly take part or engage in other trade, business, service, or occupation.
(b) The Employee shall conform to the working hours, rules, and regulations including leave rules in force of the company at all times.
(c) The Employee shall not waste or spoil the goods of the company nor without its consent, lend, advance or dispose of them or any part thereof to any person or persons.
(d) The Employee shall serve the company or any associated or allied concern in such capacity or post as the company or any of its officers shall decide, whose decision shall be final and binding on the employee.
(e) The Employee shall work in the company for a period of minimum 12 months on the terms and conditions of this agreement (hereinafter called "the period of service")
3. (a) If the Employee leaves the service of the company, including absconding without the permission of the company (or without any cause justifiable in the opinion of the company) during the period of service, he/she shall pay the company an amount of Rs. One lakh only.
(b) If the Employee leaves the service of the company without permission of the company during the period of service, including absconding, he shall pay to the company a sum of Rs. One lakh to cover the expenses incurred by the company on his/her account, including the salary and the wages paid during the period, training cost, and the opportunity cost of business that could be generated.
(d) During the said term of the period of service, whether the employee be in the employment of the company or not for any part of time either individually or in any other manner and either directly or indirectly, work, negotiate, or enter the service of, or be employed with, or accept any consultation or supervision work or be interested in or concerned with any person, firm, or company or body of persons whether incorporated or not, carrying on or engage or interest itself or themselves in any business, trade, vocation, calling or occupation of a like or similar nature with that of the company.
Signed __________________ Signed __________________
4. (a) If the Employee shall willfully disobey the lawful and reasonable orders of the company and the firm or factory under or in which he undergoes training and or its officers or shall persist, in the opinion of the company, firm, or factory, in absenting himself from her place of work without leave except in case of illness or accident or shall otherwise wrongly conduct himself or is found taking part in any movement of propaganda which is detrimental to the interest of the company or fail to make sufficient progress in her training or work or is found applying or negotiating for employment outside or shall be guilty of any misconduct or shall be engaged or concerned either as principal or agent in any betting transaction or shall draw, make, or accept or otherwise render himself liable under bill of exchange, Promissory note of guarantee or shall neglect to give her whole and attention to the business of the company or commit any breach of terms of this agreement, the company or the firm or the factory may summarily discharge and dismiss both the employee from the service forthwith. Upon such termination, the employee and the surety shall be jointly and severally liable to refund to the company the expenses incurred by the company on her account for training, including salary and wages paid to him during the training period with the company and the firm or factory and the amount incurred for this passage to and fro and the amount equal to her salary for six months prior to such termination and shall jointly and severally be liable for all losses and damages incurred or sustained by the company with the permission of this agreement.
(b) The Employee shall not during or after termination of this agreement canvass solicit interfere with or entice away persons, who shall at any time during the continuance of the Employee's employment hereunder have been in the employment and/or in the business relations with the Company.
(c) If in the opinion of the Company or the firm or factory under or in which the Employee undergoes training, the Employee on account of illness or other reasonable cause is unable to perform her duties satisfactorily, the Company may discharge the Employee.
5. (a) The liability of the Surety under this agreement shall be co-extensive with that of the Employee and shall not in any way be affected at any time given to the employee. waiver or alteration of any terms of this agreement or otherwise or indulgence of any nature or kind whatsoever given, made or shown by the company to or in favor of the employee and to all intents and purposes the liability of such surety for payment of all sums of moneys under this agreement shall be deemed to be that of a principal party jointly and severally liable with the Employee.
(b) The surety also agrees to make good the company all losses or damages suffered by the company through any breach by the employee of the terms and conditions of this agreement or arising out of his employment with the Company.
(c) This agreement shall be construed as having been made in Delhi and that the rights and liabilities of the parties hereto in case a dispute arises shall be decided by the Court at Delhi or the appropriate court having jurisdiction and shall be construed according to the law for the time being in force.
Signed __________________ Signed __________________
(d) In the event of any dispute or difference that may arise between the parties in relation to this agreement, the same can be amicably resolved by referring to arbitration in terms of Sec. 7 of the Arbitration and Conciliation Act, 1996, and the award/decision of the arbitrator/s shall be binding on both the parties. In the event of arbitrators not coming to any conclusion, it is agreed to refer the dispute to the High Court at Delhi (mention the location of the High Court) in India.
(e) In addition to the payment of the amount specified as above, the Employee and the surety hereby agree and undertake to indemnify the Company against all claims, legal fees, and any other costs that may be incurred related to or arising upon a breach of this agreement.
IN WITNESS whereof the said Employee......, Surety
Shri _______________________________ and the said <<Employer>> have hereinto set their hands and seals hereinto the day and the year first above written.
For XYZ
Employee
Director Name:__________________
Date:_________________
Witness: SURETY
1.________________ Name:________________
Date_________________
2.________________
Signed __________________ Signed __________________
Thank you.
From India, Delhi
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Greetings!!!
I am about to join a new organization, and they have asked me to sign a SURETY BOND with them.
I would like to know if this is legal and enforceable.
The detailed Bond is as follows:
Surety Bond
This agreement is made in Delhi, on this <<date>>....between..................<<name & address>>
at present employed as <<Designation>>.... <<Employer>> (hereinafter called "the employee") of the first part; and __________________________(please give details such as name, status, etc. of the sureties) herein after called as surety presently residing at __________________________________________________ ___________of the second part and <<Company's Registered office address>> Hereinafter called the "Company" of the third part;
WHEREAS the Employee has agreed to be loyally employed with and take training by the aforesaid Company. The Employee has agreed to be employed by the company, also having agreed to terms and conditions herein after appearing and furnish a survey for fulfillment of the obligation on his part and the surety has given his consent to the same.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The Employee shall become an employee of the Company as per details of the appointment letter and remain employed with the Company for a minimum period of 12 months from the date of joining.
Signed __________________ Signed __________________
2. The Employee and the surety hereby jointly and severally agree and covenant that:
(a) During the period of training with the company or any firm or factory under or in which the employee undergoes training, the Employee shall faithfully, honestly, and diligently take training in such company, firm, or factory, keep its secrets, obey all its or its officers lawful orders and shall not directly or indirectly take part or engage in other trade, business, service, or occupation.
(b) The Employee shall conform to the working hours, rules, and regulations including leave rules in force of the company at all times.
(c) The Employee shall not waste or spoil the goods of the company nor without its consent, lend, advance or dispose of them or any part thereof to any person or persons.
(d) The Employee shall serve the company or any associated or allied concern in such capacity or post as the company or any of its officers shall decide, whose decision shall be final and binding on the employee.
(e) The Employee shall work in the company for a period of minimum 12 months on the terms and conditions of this agreement (hereinafter called "the period of service")
3. (a) If the Employee leaves the service of the company, including absconding without the permission of the company (or without any cause justifiable in the opinion of the company) during the period of service, he/she shall pay the company an amount of Rs. One lakh only.
(b) If the Employee leaves the service of the company without permission of the company during the period of service, including absconding, he shall pay to the company a sum of Rs. One lakh to cover the expenses incurred by the company on his/her account, including the salary and the wages paid during the period, training cost, and the opportunity cost of business that could be generated.
(d) During the said term of the period of service, whether the employee be in the employment of the company or not for any part of time either individually or in any other manner and either directly or indirectly, work, negotiate, or enter the service of, or be employed with, or accept any consultation or supervision work or be interested in or concerned with any person, firm, or company or body of persons whether incorporated or not, carrying on or engage or interest itself or themselves in any business, trade, vocation, calling or occupation of a like or similar nature with that of the company.
Signed __________________ Signed __________________
4. (a) If the Employee shall willfully disobey the lawful and reasonable orders of the company and the firm or factory under or in which he undergoes training and or its officers or shall persist, in the opinion of the company, firm, or factory, in absenting himself from her place of work without leave except in case of illness or accident or shall otherwise wrongly conduct himself or is found taking part in any movement of propaganda which is detrimental to the interest of the company or fail to make sufficient progress in her training or work or is found applying or negotiating for employment outside or shall be guilty of any misconduct or shall be engaged or concerned either as principal or agent in any betting transaction or shall draw, make, or accept or otherwise render himself liable under bill of exchange, Promissory note of guarantee or shall neglect to give her whole and attention to the business of the company or commit any breach of terms of this agreement, the company or the firm or the factory may summarily discharge and dismiss both the employee from the service forthwith. Upon such termination, the employee and the surety shall be jointly and severally liable to refund to the company the expenses incurred by the company on her account for training, including salary and wages paid to him during the training period with the company and the firm or factory and the amount incurred for this passage to and fro and the amount equal to her salary for six months prior to such termination and shall jointly and severally be liable for all losses and damages incurred or sustained by the company with the permission of this agreement.
(b) The Employee shall not during or after termination of this agreement canvass solicit interfere with or entice away persons, who shall at any time during the continuance of the Employee's employment hereunder have been in the employment and/or in the business relations with the Company.
(c) If in the opinion of the Company or the firm or factory under or in which the Employee undergoes training, the Employee on account of illness or other reasonable cause is unable to perform her duties satisfactorily, the Company may discharge the Employee.
5. (a) The liability of the Surety under this agreement shall be co-extensive with that of the Employee and shall not in any way be affected at any time given to the employee. waiver or alteration of any terms of this agreement or otherwise or indulgence of any nature or kind whatsoever given, made or shown by the company to or in favor of the employee and to all intents and purposes the liability of such surety for payment of all sums of moneys under this agreement shall be deemed to be that of a principal party jointly and severally liable with the Employee.
(b) The surety also agrees to make good the company all losses or damages suffered by the company through any breach by the employee of the terms and conditions of this agreement or arising out of his employment with the Company.
(c) This agreement shall be construed as having been made in Delhi and that the rights and liabilities of the parties hereto in case a dispute arises shall be decided by the Court at Delhi or the appropriate court having jurisdiction and shall be construed according to the law for the time being in force.
Signed __________________ Signed __________________
(d) In the event of any dispute or difference that may arise between the parties in relation to this agreement, the same can be amicably resolved by referring to arbitration in terms of Sec. 7 of the Arbitration and Conciliation Act, 1996, and the award/decision of the arbitrator/s shall be binding on both the parties. In the event of arbitrators not coming to any conclusion, it is agreed to refer the dispute to the High Court at Delhi (mention the location of the High Court) in India.
(e) In addition to the payment of the amount specified as above, the Employee and the surety hereby agree and undertake to indemnify the Company against all claims, legal fees, and any other costs that may be incurred related to or arising upon a breach of this agreement.
IN WITNESS whereof the said Employee......, Surety
Shri _______________________________ and the said <<Employer>> have hereinto set their hands and seals hereinto the day and the year first above written.
For XYZ
Employee
Director Name:__________________
Date:_________________
Witness: SURETY
1.________________ Name:________________
Date_________________
2.________________
Signed __________________ Signed __________________
Thank you.
From India, Delhi
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Hi Mona,
The way this legal document is drafted, it has certain discrepancies:
Please verify the following queries:
1. Tenure of this agreement: Here, the tenure of this agreement is not clear. Is it a minimum of 12 months, or is it valid throughout your service tenure, say, 2-3 years with the organization?
2. Does this agreement lapse after 12 months?
3. What happens if the employer terminates your services unilaterally?
Agree this is a one-sided agreement wherein the company is protecting its interests vis-a-vis the investment in training.
Regarding the enforceability - please let me know the answers to the above 3 points.
Regards,
Rajat Joshi
From India, Pune
Acknowledge(0)Amend(0)
108The way this legal document is drafted, it has certain discrepancies:
Please verify the following queries:
1. Tenure of this agreement: Here, the tenure of this agreement is not clear. Is it a minimum of 12 months, or is it valid throughout your service tenure, say, 2-3 years with the organization?
2. Does this agreement lapse after 12 months?
3. What happens if the employer terminates your services unilaterally?
Agree this is a one-sided agreement wherein the company is protecting its interests vis-a-vis the investment in training.
Regarding the enforceability - please let me know the answers to the above 3 points.
Regards,
Rajat Joshi
From India, Pune
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Employment Agreement.pdf
Employment Agreement.doc