Hi,
I would like to share my problem with you guys. I hope you would be able to help me out through this interactive medium. Currently, I am facing issues from my previous employer who has sent a legal notice from a legal consultant firm.
I left the organization 10 months back without notice. I hardly worked for 2 months. However, I had signed the bond of 1 lakh rupees with them, provided with a surety's signature and surety identification proof. Also, I didn't give resignation; I absconded. I would like to mention that I didn't like the job as it was in a BPO. I am from a different sector and never worked in a BPO environment. I mentioned this to my manager, and he said I had to serve for at least 1 year. Due to their unwelcoming behavior, I decided to abscond. I also had a conversation with the HR team, and they too were sharp in their communication. I made my decision as I didn't find anyone helping me.
Though I have received a lot of cautionary letters from their side, I ignored them, thinking they would forget.
Now I would like to know, what should I do in this case? Do I need to ignore this notice as well? Are they really going to sue me for this and go to court for the penalty amount? Should I hire an advocate to reply to their notice?
From India, New Delhi
I would like to share my problem with you guys. I hope you would be able to help me out through this interactive medium. Currently, I am facing issues from my previous employer who has sent a legal notice from a legal consultant firm.
I left the organization 10 months back without notice. I hardly worked for 2 months. However, I had signed the bond of 1 lakh rupees with them, provided with a surety's signature and surety identification proof. Also, I didn't give resignation; I absconded. I would like to mention that I didn't like the job as it was in a BPO. I am from a different sector and never worked in a BPO environment. I mentioned this to my manager, and he said I had to serve for at least 1 year. Due to their unwelcoming behavior, I decided to abscond. I also had a conversation with the HR team, and they too were sharp in their communication. I made my decision as I didn't find anyone helping me.
Though I have received a lot of cautionary letters from their side, I ignored them, thinking they would forget.
Now I would like to know, what should I do in this case? Do I need to ignore this notice as well? Are they really going to sue me for this and go to court for the penalty amount? Should I hire an advocate to reply to their notice?
From India, New Delhi
Hi,
It's better to have an advocate to reply to their notice. You will definitely win as no company wants to go to court. There may be many people like you facing the same problem with that company. It's the reputation of the company. Only in cases of integrity issues, manipulating funds, misuse of powers, etc., companies will go to court.
Hope this will bring positive energy to you.
Regards,
Karthik
From India, Vijayawada
It's better to have an advocate to reply to their notice. You will definitely win as no company wants to go to court. There may be many people like you facing the same problem with that company. It's the reputation of the company. Only in cases of integrity issues, manipulating funds, misuse of powers, etc., companies will go to court.
Hope this will bring positive energy to you.
Regards,
Karthik
From India, Vijayawada
I am very sure this Bond is not legal, definitely consult a legal advisor on this, he would be your saviour!
From India, Delhi
From India, Delhi
Dear Harvinder,
If you signed a bond, then you are legally bound to serve the one year unless the company asks you to leave. Now, if they have sent you the legal recovery letter, you should settle this after negotiation with the concerned HR team. As soon as you pay the amount, you should obtain the relieving letter with a No Objection Certificate (NOC).
If the company has not taken any action for three years, then there would be no issue. However, now that they have sent you the letter, you must take this seriously and resolve it promptly.
Thanks and regards,
Sumit Garg
From India, New Delhi
If you signed a bond, then you are legally bound to serve the one year unless the company asks you to leave. Now, if they have sent you the legal recovery letter, you should settle this after negotiation with the concerned HR team. As soon as you pay the amount, you should obtain the relieving letter with a No Objection Certificate (NOC).
If the company has not taken any action for three years, then there would be no issue. However, now that they have sent you the letter, you must take this seriously and resolve it promptly.
Thanks and regards,
Sumit Garg
From India, New Delhi
Hi,
If your employer has sent you the notice, you could have cleared it at an early stage rather than letting it become more complicated. No MNC will waste their time and reputation just for Rs 1 lakh. So, it's better for you to respond with some vital communication to the Company HR and resolve the issue.
Thank you.
From India, Bangalore
If your employer has sent you the notice, you could have cleared it at an early stage rather than letting it become more complicated. No MNC will waste their time and reputation just for Rs 1 lakh. So, it's better for you to respond with some vital communication to the Company HR and resolve the issue.
Thank you.
From India, Bangalore
Hello Harvindar,
I am not sure of the grounds, reasons, or basis for the suggestions of Karthik when he says, "You will definitely win as no company wants to go to court..." and those of AnuVirtuos, "I am very sure this bond is not legal."
Please review this thread about Bonds discussed recently: https://www.citehr.com/423676-legali...anisation.html
Your situation doesn't seem to be much different from the case mentioned in the above-referred thread.
Regarding the options open to you, I concur with Sumit Garg but suggest involving an advocate from your end since many parts of the discussion would be in legal language/terms.
If you weren't interested in a BPO job, why did you join there IN THE FIRST PLACE? Frankly, you may not like this: Suggest thinking BEFORE you act, rather than the other way around—it will help give you peace of mind.
All the Best.
Rgds,
TS
From India, Hyderabad
I am not sure of the grounds, reasons, or basis for the suggestions of Karthik when he says, "You will definitely win as no company wants to go to court..." and those of AnuVirtuos, "I am very sure this bond is not legal."
Please review this thread about Bonds discussed recently: https://www.citehr.com/423676-legali...anisation.html
Your situation doesn't seem to be much different from the case mentioned in the above-referred thread.
Regarding the options open to you, I concur with Sumit Garg but suggest involving an advocate from your end since many parts of the discussion would be in legal language/terms.
If you weren't interested in a BPO job, why did you join there IN THE FIRST PLACE? Frankly, you may not like this: Suggest thinking BEFORE you act, rather than the other way around—it will help give you peace of mind.
All the Best.
Rgds,
TS
From India, Hyderabad
Hi Harvindar,
I have faced a similar issue in the past during my early days when I absconded from a couple of BPOs during my part-time college days. Though now, I regret doing that as I currently work as an HR in a company and understand the pain when I am on the receiving end of it.
But I would like to tell you to kindly ignore the notice that you have received as it holds no value as such and focus on your existing job at hand.
Cheers!
Pallav Thakker
From India, Mumbai
I have faced a similar issue in the past during my early days when I absconded from a couple of BPOs during my part-time college days. Though now, I regret doing that as I currently work as an HR in a company and understand the pain when I am on the receiving end of it.
But I would like to tell you to kindly ignore the notice that you have received as it holds no value as such and focus on your existing job at hand.
Cheers!
Pallav Thakker
From India, Mumbai
Hi,
Does your bond mention anything about the absconding state? You worked for 2 months and absconded for 10 months... So it has been 1 year since the bond. How about, if you just show up in the company, if they ask, give an application for non-paid personal leave for 10 months? Tell them that you do not want to continue after the term of the year is over. Technically, you never quit, and if the bond doesn't mention it, then the company never fired you. Also, since they did not give you intimation to continue your services after 1 year, there is no question of a notice period at the end of the bond. Consult a lawyer and send an answer to the notice asking for the job termination letter. I am not a lawyer myself, and I will leave it to the legal experts to comment or endorse my suggestion above. But I would like to know if this kind of action will be feasible.
Regards, Amod.
Does your bond mention anything about the absconding state? You worked for 2 months and absconded for 10 months... So it has been 1 year since the bond. How about, if you just show up in the company, if they ask, give an application for non-paid personal leave for 10 months? Tell them that you do not want to continue after the term of the year is over. Technically, you never quit, and if the bond doesn't mention it, then the company never fired you. Also, since they did not give you intimation to continue your services after 1 year, there is no question of a notice period at the end of the bond. Consult a lawyer and send an answer to the notice asking for the job termination letter. I am not a lawyer myself, and I will leave it to the legal experts to comment or endorse my suggestion above. But I would like to know if this kind of action will be feasible.
Regards, Amod.
Hi all,
Mr. TS has directed us to the similar link. I find all the arguments made there are worth understanding. A fact that any matured employee who is educated, and if properly briefed about the employment and its prospects as well as consequences in case of non-performance, signs any such document that indicates interest, benefits, penalties, etc., must abide by it. This is only known as integrity on the part of employees and employers both.
Therefore, I feel that HR people must ensure that such policies exist in companies to address these issues with the dignity of employees, keeping the very interest of the management and the organization's repute.
Thanks,
Bijay
From India, Vadodara
Mr. TS has directed us to the similar link. I find all the arguments made there are worth understanding. A fact that any matured employee who is educated, and if properly briefed about the employment and its prospects as well as consequences in case of non-performance, signs any such document that indicates interest, benefits, penalties, etc., must abide by it. This is only known as integrity on the part of employees and employers both.
Therefore, I feel that HR people must ensure that such policies exist in companies to address these issues with the dignity of employees, keeping the very interest of the management and the organization's repute.
Thanks,
Bijay
From India, Vadodara
I differ from some of the views put here.
Do not assume that the company will not go to court.
The so-called legal consulting firms actually operate on a success fee basis. They get paid more if the matter goes to court, so of course, they will be happy to take it to court.
It's not a question of 1 lakh; it's a question of teaching you a lesson and making an example of you. They would not mind spending 10 times that amount for that purpose, but you will find it really expensive. If they had provided you with some training, especially on proprietary systems, then you are in more trouble.
They had sent you a notice by courier earlier also, so they are not going to forget this matter.
Also, remember, there is a surety involved. They will proceed against him also, and he definitely won't like it. I do not know who the surety is, but you are likely to lose an important relation if he gets a notice for this and more so if he has to go to court over this.
It's also just a matter of time before they find out where you are working and send a notice or letter to the current employer. Your current employer will probably not like it.
You need to get a lawyer to see and review the matter and act according to his advice. Explain to him that you want to avoid a court and specifically to avoid getting the surety in trouble.
From India, Mumbai
Do not assume that the company will not go to court.
The so-called legal consulting firms actually operate on a success fee basis. They get paid more if the matter goes to court, so of course, they will be happy to take it to court.
It's not a question of 1 lakh; it's a question of teaching you a lesson and making an example of you. They would not mind spending 10 times that amount for that purpose, but you will find it really expensive. If they had provided you with some training, especially on proprietary systems, then you are in more trouble.
They had sent you a notice by courier earlier also, so they are not going to forget this matter.
Also, remember, there is a surety involved. They will proceed against him also, and he definitely won't like it. I do not know who the surety is, but you are likely to lose an important relation if he gets a notice for this and more so if he has to go to court over this.
It's also just a matter of time before they find out where you are working and send a notice or letter to the current employer. Your current employer will probably not like it.
You need to get a lawyer to see and review the matter and act according to his advice. Explain to him that you want to avoid a court and specifically to avoid getting the surety in trouble.
From India, Mumbai
Dear Harvindar,
Please recall if you have signed a bond that is two-sided, meaning if the company has promised you any costly training or other similar improvement programs, and you receive the same within two months.
A single-sided bond holds no value. However, if you have received a legal notice, it is better to consult legal advisory before taking any action or communicating with them.
Loeksh
From Australia
Please recall if you have signed a bond that is two-sided, meaning if the company has promised you any costly training or other similar improvement programs, and you receive the same within two months.
A single-sided bond holds no value. However, if you have received a legal notice, it is better to consult legal advisory before taking any action or communicating with them.
Loeksh
From Australia
Yes, do not underestimate any employer. Spending on their legal consultants, court fees, etc. is peanuts for them. In fact, your previous employer seems to be following the "Principles of Natural Justice" by giving you ample opportunities to respond to those notices. You conveniently ignored it and took it casually, resulting in the situation you are facing today.
Who wins and who loses in this case is immaterial. My wife's sister's son joined one of the renowned IT companies, where he was asked to sign a three-year agreement. He was also asked to submit surety, where his father had to provide a xerox copy of his passbook, fixed deposit receipts, property documents, etc.
Let's not discuss whether it is legal to ask for all these papers. It is their company's policy. If you want to be hired or are keen on joining them, submit those documents; otherwise, forget it.
In the same way, would you have agreed and signed the bond? As I mentioned before, the end result is not their concern. It is the lesson they aim to teach you and send a message to other potential candidates.
Moreover, aside from handling this case, you may have to take leave whenever you are summoned by the court to appear. You can apply for leave on "personal" reasons once or twice, but when your current employer becomes aware that you are involved in a legal issue with your previous employer, they may also lose interest in having you there.
Better be careful.
V. Balaji
From India, Madras
Who wins and who loses in this case is immaterial. My wife's sister's son joined one of the renowned IT companies, where he was asked to sign a three-year agreement. He was also asked to submit surety, where his father had to provide a xerox copy of his passbook, fixed deposit receipts, property documents, etc.
Let's not discuss whether it is legal to ask for all these papers. It is their company's policy. If you want to be hired or are keen on joining them, submit those documents; otherwise, forget it.
In the same way, would you have agreed and signed the bond? As I mentioned before, the end result is not their concern. It is the lesson they aim to teach you and send a message to other potential candidates.
Moreover, aside from handling this case, you may have to take leave whenever you are summoned by the court to appear. You can apply for leave on "personal" reasons once or twice, but when your current employer becomes aware that you are involved in a legal issue with your previous employer, they may also lose interest in having you there.
Better be careful.
V. Balaji
From India, Madras
I too differ here. The company wants to make an example out of you and deter others who plan to break the bond. I too acted in the same way by serving notice period to two employees who broke the bond. I tried to do damage control, which helped us in the longer period.
FYI, bonds don't have much legality; there are some legal lacunas in it, which ultimately fail in the court of law, but then you have to fight it out. You need to seek legal advice, and I am sure there is a way out.
From India, Mumbai
FYI, bonds don't have much legality; there are some legal lacunas in it, which ultimately fail in the court of law, but then you have to fight it out. You need to seek legal advice, and I am sure there is a way out.
From India, Mumbai
Hi Harwinder,
One of our colleagues went absconding following a similar scenario. He was an outstation resident and had given his father's name as a surety.
When the company could not reach him, they tried to contact his father.
His father took a stand that he would register a formal police complaint, stating that his son was frustrated with work but could not leave the job due to the bond. Now, his son has gone missing while working at the company in another city.
As much as the company wanted to find the person, they did not want to get involved in any investigation, nor did they want the police on the premises for such an inquiry.
They had no legal liabilities with the father as he was not part of the bond, so they decided not to pursue the matter.
Such bonds have a validity period. The person showed up after the one-year validity period, and the company could not make any legal claims on him.
Anyway, this example is not to indicate how one can escape responsibility. However, there are many questions about this situation on this forum.
The moral responsibility for such matters may lie with both parties. When it is challenging to establish legal responsibility, both parties will try to find alternative solutions.
Someone with strong moral fiber would not consider such actions. But if one has already taken steps in that direction, like leaving the company ten months ago, thoughts of seeking alternative ways to gain an advantage in ambiguity and save time and money might arise.
Regards,
Amod.
One of our colleagues went absconding following a similar scenario. He was an outstation resident and had given his father's name as a surety.
When the company could not reach him, they tried to contact his father.
His father took a stand that he would register a formal police complaint, stating that his son was frustrated with work but could not leave the job due to the bond. Now, his son has gone missing while working at the company in another city.
As much as the company wanted to find the person, they did not want to get involved in any investigation, nor did they want the police on the premises for such an inquiry.
They had no legal liabilities with the father as he was not part of the bond, so they decided not to pursue the matter.
Such bonds have a validity period. The person showed up after the one-year validity period, and the company could not make any legal claims on him.
Anyway, this example is not to indicate how one can escape responsibility. However, there are many questions about this situation on this forum.
The moral responsibility for such matters may lie with both parties. When it is challenging to establish legal responsibility, both parties will try to find alternative solutions.
Someone with strong moral fiber would not consider such actions. But if one has already taken steps in that direction, like leaving the company ten months ago, thoughts of seeking alternative ways to gain an advantage in ambiguity and save time and money might arise.
Regards,
Amod.
Dear Sir,
Don't worry. I am sure this bond was only for Rs. 10, Rs. 50, or Rs. 100. It was valid for up to 6 months. As you mentioned, they sent you a letter or notice after 10 months. Now, it is only a piece of paper that has no value.
Secondly, when the employer made a bond, they should have had it registered and paid stamp duty on Rs. 100,000, which they did not do. Therefore, there is no chance of them recovering one lakh from you.
So, don't worry. Be happy.
With regards,
Virender
From India, New Delhi
Don't worry. I am sure this bond was only for Rs. 10, Rs. 50, or Rs. 100. It was valid for up to 6 months. As you mentioned, they sent you a letter or notice after 10 months. Now, it is only a piece of paper that has no value.
Secondly, when the employer made a bond, they should have had it registered and paid stamp duty on Rs. 100,000, which they did not do. Therefore, there is no chance of them recovering one lakh from you.
So, don't worry. Be happy.
With regards,
Virender
From India, New Delhi
Nopes!!!! Your assumption is wrong, and the way your company handled it is also wrong. A bond does not lose value simply because the period is over. When the candidate absconded, the period was on hold. The bond is definitely valid.
Further, the company should have taken a surety in a formal manner. If they had taken a letter of surety or made the surety a part of the bond itself, then the father would be hauled up. Few MNCs or large companies are lax in documentation. Your colleague was just purely lucky on this count.
For the MNC to get the person in trouble is very easy. All they need to do is file an FIR stating he has absconded with company property. And you have had it. His father would have had to give all details and also pay heavily to the cops (I mean cash) to avoid getting his son arrested.
One of our colleagues went absconding following a similar scenario. He was an outstation resident and had given his father's name as surety. When the company could not reach him, they tried to reach his father. His father took a stand that he would register a formal police complaint, stating that his son was frustrated with work but could not leave the job due to the bond and had now gone missing while he was working at the company in another city.
As much as the company wanted to find the person, they did not want to get involved in any such investigation, neither did they want the police on the premises for such an inquiry. They had no legal liabilities with the father as he was not part of the bond, so they decided not to pursue the matter.
Such bonds have validity. The person showed up after the validity period of 1 year in that case, and the company could not put any legal claims on him. Anyway, this example is not to indicate how you can escape from responsibility, but there are so many questions about this situation on this forum.
The moral responsibility for such things may lie with both parties, but when it is hard to establish the legal responsibility, both parties will try to find ways. Anyone with a strong moral fiber would not think of such ways, but then you have already started the path 10 months back when you left the company... :-)
And as in this example, there is nothing wrong with thinking of alternate ways to gain the upper hand in such ambiguity and save some money and time.
Regards, Amod.
From India, Mumbai
Further, the company should have taken a surety in a formal manner. If they had taken a letter of surety or made the surety a part of the bond itself, then the father would be hauled up. Few MNCs or large companies are lax in documentation. Your colleague was just purely lucky on this count.
For the MNC to get the person in trouble is very easy. All they need to do is file an FIR stating he has absconded with company property. And you have had it. His father would have had to give all details and also pay heavily to the cops (I mean cash) to avoid getting his son arrested.
One of our colleagues went absconding following a similar scenario. He was an outstation resident and had given his father's name as surety. When the company could not reach him, they tried to reach his father. His father took a stand that he would register a formal police complaint, stating that his son was frustrated with work but could not leave the job due to the bond and had now gone missing while he was working at the company in another city.
As much as the company wanted to find the person, they did not want to get involved in any such investigation, neither did they want the police on the premises for such an inquiry. They had no legal liabilities with the father as he was not part of the bond, so they decided not to pursue the matter.
Such bonds have validity. The person showed up after the validity period of 1 year in that case, and the company could not put any legal claims on him. Anyway, this example is not to indicate how you can escape from responsibility, but there are so many questions about this situation on this forum.
The moral responsibility for such things may lie with both parties, but when it is hard to establish the legal responsibility, both parties will try to find ways. Anyone with a strong moral fiber would not think of such ways, but then you have already started the path 10 months back when you left the company... :-)
And as in this example, there is nothing wrong with thinking of alternate ways to gain the upper hand in such ambiguity and save some money and time.
Regards, Amod.
From India, Mumbai
Wow! Who has been giving you such information? Please do not misguide people with half-baked information. A bond needs to be on a Rs. 100 stamp paper only. In case it had an indemnity clause, it would need a Rs. 500 stamp paper (this is in Mumbai, some states may have slightly different stamp rates).
There is no need to register an agreement or a bond. Registration is required for only a few monitored cases, like property agreements. And definitely, whoever told you that you need to put a Rs. 1 lakh stamp paper for a Rs. 1 lakh bond or even a Rs. 10 lakh bond is a person from whom you should avoid taking advice. Stamp duty is rarely going to be over 0.5% of the value.
The validity of the stamp paper being 6 months means the agreement must be signed within 6 months of obtaining the stamp paper; it does not affect the validity period of the agreement signed. How else do you think people sign long-term agreements if the document validity did not exceed 6 months!
From India, Mumbai
There is no need to register an agreement or a bond. Registration is required for only a few monitored cases, like property agreements. And definitely, whoever told you that you need to put a Rs. 1 lakh stamp paper for a Rs. 1 lakh bond or even a Rs. 10 lakh bond is a person from whom you should avoid taking advice. Stamp duty is rarely going to be over 0.5% of the value.
The validity of the stamp paper being 6 months means the agreement must be signed within 6 months of obtaining the stamp paper; it does not affect the validity period of the agreement signed. How else do you think people sign long-term agreements if the document validity did not exceed 6 months!
From India, Mumbai
Hi All,
I wanted to cite an example where the implication of bond signing and the organization taking action against the violation of employment norms.
In military services, they take a bond signed in their formats from the prospective employees. On the other hand, they fulfill whatever is committed to the employees at the time of recruitment. One important point is that I have even witnessed that they explain each clause of the service term and the bond term one by one to all the selected recruits. They even ask the prospective employees if they understood the terms or not. Looking at the system followed in military services, it is not only unlawful on the part of employees to break the bond, but it is also equally true that services provide every bit of benefit and compensation to their employees without fail. Under such circumstances, how will one dare to leave the job? Secondly, if any employee dares to abscond or leave without following the service norms, why shouldn't the services take action against such employees?
I feel that people think that merely the organizations are private concerns, and they take it for granted. Educated individuals, especially HR in the industry, must take the initiative to improve on both ends, namely employees as well as employers.
Thanks and warm regards,
BIJAY
From India, Vadodara
I wanted to cite an example where the implication of bond signing and the organization taking action against the violation of employment norms.
In military services, they take a bond signed in their formats from the prospective employees. On the other hand, they fulfill whatever is committed to the employees at the time of recruitment. One important point is that I have even witnessed that they explain each clause of the service term and the bond term one by one to all the selected recruits. They even ask the prospective employees if they understood the terms or not. Looking at the system followed in military services, it is not only unlawful on the part of employees to break the bond, but it is also equally true that services provide every bit of benefit and compensation to their employees without fail. Under such circumstances, how will one dare to leave the job? Secondly, if any employee dares to abscond or leave without following the service norms, why shouldn't the services take action against such employees?
I feel that people think that merely the organizations are private concerns, and they take it for granted. Educated individuals, especially HR in the industry, must take the initiative to improve on both ends, namely employees as well as employers.
Thanks and warm regards,
BIJAY
From India, Vadodara
Hi,
Any bonds of employer-employee nature are not valid in India, especially in private companies. Companies make one sign a bond to make the person committed to their stand; however, they are not legally valid. The company may try other tactics like false allegations, which you will have to defend, may not provide you with a relieving letter and experience letter.
As per Indian law, you cannot curtail an individual's growth, and a bond just does that. Therefore, no significant companies have ever won any case against the employee. However, there are some who get scared and pay the due.
Mr. Bijay, it is true what you said that legal action can be taken against a person in defense and Government organization if he or she breaks the bond, as this organization is considered crucial for the running of the Government and for the safeguard of the country. But the same law can't be applied to private companies, as they are purely profit-based and unlike government organizations, they don't take care of the employee even after retirement.
Regards,
Anita
From India, Mumbai
Any bonds of employer-employee nature are not valid in India, especially in private companies. Companies make one sign a bond to make the person committed to their stand; however, they are not legally valid. The company may try other tactics like false allegations, which you will have to defend, may not provide you with a relieving letter and experience letter.
As per Indian law, you cannot curtail an individual's growth, and a bond just does that. Therefore, no significant companies have ever won any case against the employee. However, there are some who get scared and pay the due.
Mr. Bijay, it is true what you said that legal action can be taken against a person in defense and Government organization if he or she breaks the bond, as this organization is considered crucial for the running of the Government and for the safeguard of the country. But the same law can't be applied to private companies, as they are purely profit-based and unlike government organizations, they don't take care of the employee even after retirement.
Regards,
Anita
From India, Mumbai
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