I went for an interview in one company. They asked me if I could sign a one-year bond according to which, if I leave the job before one year, I will have to pay back 3 months' salary. However, I politely refused and told them that although I plan to work long-term for the company, I can't take the risk and guarantee it because you never know what happens in the future. They then told me that they would not insist on signing the bond if I am not comfortable, but at least I would have to sign a commitment letter. I agreed at that time. However, you may find it stupid, but I really don't know what a commitment letter is. All I assumed was that it must not have any conditions like the bond. Does a commitment letter have any conditions? I have been selected and will be joining next week, so I still have time to think.
From India, Ahmedabad
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5From India, Ahmedabad
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I just want to know if a commitment letter is simply a formal letter to show support for the company or if it is a legal contract. Breaking which one may lead to legal consequences? Be it a bond or any legal contract, I wouldn't be comfortable guaranteeing my tenure, as I clearly stated in the interview. However, now I am doubting that during the interview when I mentioned I wouldn't sign the bond letter, which stated that if I left the job before a year, I would have to pay back three months' salary. They cleverly persuaded me by suggesting that at least I should provide them with a commitment letter. They then altered some of the terms and started referring to it as a "commitment" letter, stating that I would work for them GUARANTEED for at least one year, regardless of the circumstances.
From India, Ahmedabad
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From India, Ahmedabad
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Understanding Commitment Letters in Employment
It is a usual practice that employers take a commitment letter from the employee for a fixed period, and this creates fear in the employee's mind. Some companies even go to the extent of mentioning the amount recoverable from the employee for abandoning or breaching the agreement.
Also, remember that it really does not matter if the commitment letter is on plain paper, company letterhead, or stamp paper. If there is an objection that the contract is not duly stamped, the same can be rectified by paying the stamp duty to make it valid.
So, it is better not to join them; look for other opportunities.
Regards,
Anita
From India, Mumbai
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It is a usual practice that employers take a commitment letter from the employee for a fixed period, and this creates fear in the employee's mind. Some companies even go to the extent of mentioning the amount recoverable from the employee for abandoning or breaching the agreement.
Also, remember that it really does not matter if the commitment letter is on plain paper, company letterhead, or stamp paper. If there is an objection that the contract is not duly stamped, the same can be rectified by paying the stamp duty to make it valid.
So, it is better not to join them; look for other opportunities.
Regards,
Anita
From India, Mumbai
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Employment Agreement.pdf
Employment Agreement.doc