Employee Service Bond and Role Changes
If an employee signed a 2-year service bond with the company (Software) on a Rs. 100 stamp paper, and the bond amount is Rs. 1,00,000, they were initially informed that they would be responsible for admin work (daily routine work). Just after one month of joining, the management instructed them to take care of the accounting part of the company. Subsequently, they were compelled to recruit candidates for training in the company, a task falling under the marketing department. After three months, the management assigned them a target to recruit at least 10 candidates for training. The employee informed the company about this, but they are pressuring them to meet the target, threatening to jeopardize their career if they fail to do so.
Legal Implications of Breaking a Service Bond
My question is, if the employee leaves before or after the completion of the bond period, what actions can the company take? Can the company file a case against the employee or encash the bond amount?
From India, Gandhinagar
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If an employee signed a 2-year service bond with the company (Software) on a Rs. 100 stamp paper, and the bond amount is Rs. 1,00,000, they were initially informed that they would be responsible for admin work (daily routine work). Just after one month of joining, the management instructed them to take care of the accounting part of the company. Subsequently, they were compelled to recruit candidates for training in the company, a task falling under the marketing department. After three months, the management assigned them a target to recruit at least 10 candidates for training. The employee informed the company about this, but they are pressuring them to meet the target, threatening to jeopardize their career if they fail to do so.
Legal Implications of Breaking a Service Bond
My question is, if the employee leaves before or after the completion of the bond period, what actions can the company take? Can the company file a case against the employee or encash the bond amount?
From India, Gandhinagar
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Dear Sachin, unless the language of the bond is seen, it is not proper to give advice. One thing is certain: a bond is enforceable when there is a breach of any terms stipulated by it, but not for a breach of every condition under the sun unconnected with the bond, which an employer subsequently subjects an employee to. You can discuss this issue with HR and try to amicably solve it.
Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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57Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc