Hi all,
I am working in a software company and have signed a bond with it. I don't remember exactly what they made me sign on stamp paper, but in the offer letter they gave me, they stated that I had to undergo 1 year of training and provide 2 years of service for them. What are the legal consequences if I break this bond?
Please help me out...
From India, Bangalore
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I am working in a software company and have signed a bond with it. I don't remember exactly what they made me sign on stamp paper, but in the offer letter they gave me, they stated that I had to undergo 1 year of training and provide 2 years of service for them. What are the legal consequences if I break this bond?
Please help me out...
From India, Bangalore
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Dear Dipika,
If it is stated in the bond that you have to serve a 1-year training period and 2 years of service, then you will have to comply. Additionally, ensure that the bond explicitly states (if included in your bond) that in the event of leaving the company during the bond period, you are liable to pay a liquidity damage (the specifics of which will be detailed in your bond).
If you fail to pay the liquidity damage, the company reserves the right to deduct the amount from your final settlement or take legal action, such as sending a court notice for non-payment.
To maintain a positive image when leaving the company, I recommend reviewing the bond once more and seeking advice from your HR team.
Kind regards, [Your Name]
From India, Mumbai
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399If it is stated in the bond that you have to serve a 1-year training period and 2 years of service, then you will have to comply. Additionally, ensure that the bond explicitly states (if included in your bond) that in the event of leaving the company during the bond period, you are liable to pay a liquidity damage (the specifics of which will be detailed in your bond).
If you fail to pay the liquidity damage, the company reserves the right to deduct the amount from your final settlement or take legal action, such as sending a court notice for non-payment.
To maintain a positive image when leaving the company, I recommend reviewing the bond once more and seeking advice from your HR team.
Kind regards, [Your Name]
From India, Mumbai
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Hi Ankit,
Thank you for the response. Do you think it is a good idea to discuss with my HR team regarding this before I receive a written offer from another company? The liquidity damage demanded by them is Rs. 200,000. Moreover, I don't see any growth opportunities in this company. Employees have been working in the same position for 7 to 8 years. When I raised this issue with my Team Leader, he mentioned that I may face consequences.
I spoke to a friend at the same company, with whom I joined, and learned that a few years ago, a female employee who left the organization and broke the bond was taken to court, but the outcome is unknown. Is it legal in India to bind an employee using a bond as a tool?
Regards,
Dipika
From India, Bangalore
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Thank you for the response. Do you think it is a good idea to discuss with my HR team regarding this before I receive a written offer from another company? The liquidity damage demanded by them is Rs. 200,000. Moreover, I don't see any growth opportunities in this company. Employees have been working in the same position for 7 to 8 years. When I raised this issue with my Team Leader, he mentioned that I may face consequences.
I spoke to a friend at the same company, with whom I joined, and learned that a few years ago, a female employee who left the organization and broke the bond was taken to court, but the outcome is unknown. Is it legal in India to bind an employee using a bond as a tool?
Regards,
Dipika
From India, Bangalore
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Dear Dipika,
Binding an employee by bond is legal, and as the bond itself is a legal document after it gets stamped or franked....
Also, if you leave the company before the completion of the bond period, then you have to pay the liquidity damage. Otherwise, as stated in my earlier post, a case can be filed against you in court.
I would suggest that you should serve your bond period, and in case you do not wish to serve, then pay the liquidity damage.
From India, Mumbai
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Binding an employee by bond is legal, and as the bond itself is a legal document after it gets stamped or franked....
Also, if you leave the company before the completion of the bond period, then you have to pay the liquidity damage. Otherwise, as stated in my earlier post, a case can be filed against you in court.
I would suggest that you should serve your bond period, and in case you do not wish to serve, then pay the liquidity damage.
From India, Mumbai
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Hi Ankit there is no way out to come from this bond...:( Have I to continue it unwillingly ... Regards Dipika Dip
From India, Bangalore
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From India, Bangalore
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Dear Dipika, There is no way out...to avoid further complications i suggest you tha you continue till the validity of your bond period....
From India, Mumbai
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From India, Mumbai
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Hey Ankit I got to know that i did sign memorandom of understanding on the stamp paper Now do you have any idea what is memorandom of understanding. And what are its consequences .
From India, Bangalore
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From India, Bangalore
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Hi,
There is a provision in the Constitution of India, Article 23, as your fundamental right under the right to exploitation, where no one can be forced to work. However, I would suggest that you consult with a legal advisor and your family before taking any further action on this matter. Feel free to discuss. They will be able to help sort things out better.
Regards,
Aman
From India, New Delhi
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There is a provision in the Constitution of India, Article 23, as your fundamental right under the right to exploitation, where no one can be forced to work. However, I would suggest that you consult with a legal advisor and your family before taking any further action on this matter. Feel free to discuss. They will be able to help sort things out better.
Regards,
Aman
From India, New Delhi
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Hey Ankit,
They didn't give us the copy of the bond, and upon asking for it, they say it's against company policy. At most, I can provide you with the offer letter and the notification of the $500 per month increment they made. I don't have a copy of the bond itself, and the company is not willing to give it to me. Will the offer letter be sufficient?
I also received an increment in my salary due to policy changes. Will these two documents work? Please let me know.
From India, Bangalore
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They didn't give us the copy of the bond, and upon asking for it, they say it's against company policy. At most, I can provide you with the offer letter and the notification of the $500 per month increment they made. I don't have a copy of the bond itself, and the company is not willing to give it to me. Will the offer letter be sufficient?
I also received an increment in my salary due to policy changes. Will these two documents work? Please let me know.
From India, Bangalore
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Bond of Employment.doc
Bond in employment.pdf