I'm new to this forum. I recently joined a small IT company as a .NET programmer in Chennai. I've signed a 3-year bond on a 20 rupees bond paper. If I need to break the bond, I have to pay 1 lakh rupees. I have given all my original certificates to them.
Currently, I am in training. The training period is 4 months with no salary during this period. After the 4 months of training, my salary will be only 4k per month, which I believe is less than the current market standard.
Possibility of a Salary Hike
I have recently discovered that there is a possibility of a salary hike. To be eligible for the hike, they are requiring me to stay overnight starting from the morning, and they are also asking me to work on Sundays. If I comply with these conditions, by the end of 3 years, my maximum salary would be 15k to 18k.
Due to family problems, I need to leave this company. I have only been here for 1 month. I have spoken to the HR department about resigning, but they are insisting that I pay 1 lakh rupees. Otherwise, they will not return my certificates. I feel trapped and helpless.
Could anyone please advise me on what I should do?
From India, Mumbai
Acknowledge(0)
Amend(0)
Currently, I am in training. The training period is 4 months with no salary during this period. After the 4 months of training, my salary will be only 4k per month, which I believe is less than the current market standard.
Possibility of a Salary Hike
I have recently discovered that there is a possibility of a salary hike. To be eligible for the hike, they are requiring me to stay overnight starting from the morning, and they are also asking me to work on Sundays. If I comply with these conditions, by the end of 3 years, my maximum salary would be 15k to 18k.
Due to family problems, I need to leave this company. I have only been here for 1 month. I have spoken to the HR department about resigning, but they are insisting that I pay 1 lakh rupees. Otherwise, they will not return my certificates. I feel trapped and helpless.
Could anyone please advise me on what I should do?
From India, Mumbai
Acknowledge(0)Amend(0)
Why you have signed the agreement? Now in case of trouble/pain why you are asking help from us?
From India, Pune
Acknowledge(2)Amend(0)
470From India, Pune
Acknowledge(2)Amend(0)
I am surprised to read your post that they are not paying any money during the training period and have you sign a bond for three years, pledging your original certificates as a guarantee of the bond. I suggest, if you dare, to leave the company and obtain duplicate copies of the certificates from the respective Boards/Universities. No harm will come to you. The salary offered is below the Minimum Wage.
All the best,
V K Gupta
From India, Panipat
Acknowledge(3)
Amend(0)
All the best,
V K Gupta
From India, Panipat
Acknowledge(3)Amend(0)
I just wanted to know the conditions mentioned in your bond. There should be conditions to break the bond with options, like a 1 lakh amount to be paid or a 3-month notice period. Have they mentioned that?
Apart from that, you have not even completed your training period. Fortunately, you made a quick decision before your training period was completed. So, take a photocopy of your contract bond and get suggestions from a lawyer as soon as possible.
Regards,
From India, Madras
Acknowledge(0)Amend(0)
Apart from that, you have not even completed your training period. Fortunately, you made a quick decision before your training period was completed. So, take a photocopy of your contract bond and get suggestions from a lawyer as soon as possible.
Regards,
From India, Madras
Acknowledge(0)Amend(0)
Thanks for your reply, Gupta. It's a big hassle to get duplicates of all 10th, 12th, and MCA certificates back. At first, I believed there would be a proper hike and good training as well. But only after I entered, I came to know all the bad things about this company. We're not rich enough to pay 1 lakh rupees. Is it possible to move legally? If I complain to the police or to any lawyer, will they be able to help me get my certificates back?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
I've read the bond when I signed it; it only contains details about the company and how much they're paying for the government. I didn't see anything stating that I need to work there for 3 years or that I need to pay 1 lakh. All those conditions were listed only in my offer letter. They said my notice period is 3 months but didn't provide me with a copy of the bond. Whenever I ask for a copy, they try to avoid me.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Ok Raj, you just need to talk with your HR or the concerned person in a polite way to explain that you need to break the bond, but you cannot afford to pay and ask for other options. If they continue to avoid you, write a request letter and submit it to them. If they reject your request, inform them that you will be going to the Regional Labour Office to seek assistance.
Important Considerations
One more thing, did they mention in the bond that they have also retained all your original certificates? Or have you received any acknowledgment from them regarding this?
Remember to approach the situation professionally and follow the necessary steps to address your concerns.
From India, Madras
Acknowledge(1)Amend(0)
Important Considerations
One more thing, did they mention in the bond that they have also retained all your original certificates? Or have you received any acknowledgment from them regarding this?
Remember to approach the situation professionally and follow the necessary steps to address your concerns.
From India, Madras
Acknowledge(1)Amend(0)
Act as suggested by Ms. Bala and file a complaint with the Labor Officer of your area for unfair labor practices while explaining your position. You will surely receive help from the department to resolve this issue.
Regards,
V. K. Gupta
From India, Panipat
Acknowledge(1)Amend(0)
Regards,
V. K. Gupta
From India, Panipat
Acknowledge(1)Amend(0)
I already talked to them politely. That was the first step I took. However, they are stubborn in enforcing their policy. They said, as per our policy, you need to pay either 1 lakh or work for 3 years. There was nothing mentioned in the bond about taking my certificates. They only gave an acknowledgment letter stating these are the certificates we have. Like you said, if I go to the Regional Labour Office and file a case, will that affect my career? For instance, if I move on to another company or during Visa verification in the future? Just to know.
Thanks for your help in advance.
From India, Mumbai
Acknowledge(0)Amend(0)
Thanks for your help in advance.
From India, Mumbai
Acknowledge(0)Amend(0)
As told by Mr. Gupta and Mr. Bala, please approach the Local Labor Officer for unfair labor practices. It is also advisable to approach a lawyer who can guide you legally to come out of this situation.
No company can pay you less than minimum wages, and legally no one can compel you to pay 1 lakh rupees. At most, they can recover the training cost.
By sending a legal notice (with due consultation of the lawyer), they will hand over the original certificates. Be patient and do not get disheartened.
From India, Ahmadabad
Acknowledge(0)Amend(0)
No company can pay you less than minimum wages, and legally no one can compel you to pay 1 lakh rupees. At most, they can recover the training cost.
By sending a legal notice (with due consultation of the lawyer), they will hand over the original certificates. Be patient and do not get disheartened.
From India, Ahmadabad
Acknowledge(0)Amend(0)
It will not affect your career. The labour department is there to protect employees from companies like yours. You do not need to go to the labour office; just inform your HR that you have no other way to resolve your issue, so you are going to the labour office. Surely, they will be apprehensive and attempt to address your concerns.
If they remain obstinate, gather all your offer and appointment letters along with a complaint letter, then meet with the area labour officer to find a solution to your problem.
From India, Madras
Acknowledge(0)Amend(0)
If they remain obstinate, gather all your offer and appointment letters along with a complaint letter, then meet with the area labour officer to find a solution to your problem.
From India, Madras
Acknowledge(0)Amend(0)
Yes, you're right. Thanks for your motivation. I've really learned a lesson from this. Getting into an IT job as a fresher is so difficult nowadays. There are not many openings for freshers nowadays. I'm a 2012 pass out, and I really had a hard time finding an opening in the development part. Suddenly, when I got this job, I went mad and agreed to all they said. I'll seek help from the regional labor office with full trust. You're so kind. Thank you very much.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Raj, you have already put your head in the guillotine. You have joined a company that has no regard for law or humanity. These breeds of companies, especially the foreign ones, think that Indian laws are not applicable to them. Will they allow us to run a company in their country without obeying their laws?
Varghese Mathew
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Varghese Mathew
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
I do agree that companies have the right to sue their ex-employees for the violation of contracts. However, as per recent judgments by the Supreme Court and various High Courts, nowadays bonds are not considered valid in India.
Legality of Employment Bonds in India
In India, bonds are illegal concerning employment since the bonded labor system was long abolished as per the Indian Statute, and no bond can force any person to work against their wishes.
Fundamental Rights and Employment
Article 19 of the Indian Constitution discusses fundamental rights. According to Article 19 of the Constitution, the right to work is a fundamental right, and under no circumstances can fundamental rights under Article 19 be waived by any person, nor can any person be forced to do something that violates the rights mentioned under Article 19.
Indian Contract Act on Employment Bonds
As per the Indian Contract Act, contracts entered between two parties, if one-sided, would be null and void. Most bonds are one-sided. Furthermore, as per the Indian Contract Act, no contract can be enforced on any person if the contract being enforced causes harm to the person or violates principles of natural justice.
Legal Consequences of Coercion
Section 368 of the Indian Penal Code states that holding back documents, using legal documents, or threatening legal action to force a person to act against their wishes or against the law amounts to extortion. The minimum punishment under this act is two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against their will just because they have signed a contract with the employer. The Supreme Court has also stated that the employer cannot withhold any personal documents of the employees as they rightfully belong to the employees.
Consequences for Companies
Any complaint against the company could result in the Directors and Managing Directors of the company facing imprisonment or Exemplary Damages, as the company is a legal entity with the management being responsible.
When Bonds Are Applicable
Bonds are applicable only if the company has invested in the personal development and growth of the employees, not just in training that enhances performance.
There is nothing wrong with fighting for justice.
All the best for your future.
Thanks,
Karthi
From India, Hyderabad
Acknowledge(2)
Amend(0)
Legality of Employment Bonds in India
In India, bonds are illegal concerning employment since the bonded labor system was long abolished as per the Indian Statute, and no bond can force any person to work against their wishes.
Fundamental Rights and Employment
Article 19 of the Indian Constitution discusses fundamental rights. According to Article 19 of the Constitution, the right to work is a fundamental right, and under no circumstances can fundamental rights under Article 19 be waived by any person, nor can any person be forced to do something that violates the rights mentioned under Article 19.
Indian Contract Act on Employment Bonds
As per the Indian Contract Act, contracts entered between two parties, if one-sided, would be null and void. Most bonds are one-sided. Furthermore, as per the Indian Contract Act, no contract can be enforced on any person if the contract being enforced causes harm to the person or violates principles of natural justice.
Legal Consequences of Coercion
Section 368 of the Indian Penal Code states that holding back documents, using legal documents, or threatening legal action to force a person to act against their wishes or against the law amounts to extortion. The minimum punishment under this act is two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against their will just because they have signed a contract with the employer. The Supreme Court has also stated that the employer cannot withhold any personal documents of the employees as they rightfully belong to the employees.
Consequences for Companies
Any complaint against the company could result in the Directors and Managing Directors of the company facing imprisonment or Exemplary Damages, as the company is a legal entity with the management being responsible.
When Bonds Are Applicable
Bonds are applicable only if the company has invested in the personal development and growth of the employees, not just in training that enhances performance.
There is nothing wrong with fighting for justice.
All the best for your future.
Thanks,
Karthi
From India, Hyderabad
Acknowledge(2)Amend(0)
I hope your problem is sorted out. I am curious about this—are you the only one facing this issue? If not, would the others join hands with you and support you? Also, maybe it's better to approach the RLO informally first to know what view they take of whatever contracts you have signed and their legal validity. Unless the company is really small, they could have also done due diligence.
I hope this helps clarify the situation. Let me know if you need further assistance.
From United States, New York
Acknowledge(0)Amend(0)
I hope this helps clarify the situation. Let me know if you need further assistance.
From United States, New York
Acknowledge(0)Amend(0)
You are quoting rules and sections out of context and some that do not exist. In the process, you are confusing people. Do yourself a favor and read the bonded labor law. It has nothing to do with bonds of the type we are talking about. A bond asking a person to work for a certain period in exchange for training is valid. Further, the amount is generally related to training costs. The training needs to be for work and not personal grooming. Stop misleading people.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
This will work for sure! If the Labour office didn’t work, my final suggestion (1%) to Mr. Raj would be what you have suggested:
- Regular late coming
- Making poor-quality software with bugs
- etc.
Even though people are not intended to do all that, such types of companies make people do so. There is nothing wrong! Above is the final way to break free from those slavery-like companies.
From India, Madras
Acknowledge(0)Amend(0)
- Regular late coming
- Making poor-quality software with bugs
- etc.
Even though people are not intended to do all that, such types of companies make people do so. There is nothing wrong! Above is the final way to break free from those slavery-like companies.
From India, Madras
Acknowledge(0)Amend(0)
It's not only me who has been trapped. As Bhaskar said, even if I do misleading things, they won't terminate me. Instead, they won't give any salary hike. The salary of 4k will remain the same for the entire 3 years. In the worst-case scenario, even if they terminate me, they won't return my certificates. Can someone please let me know the address of the Regional Labor Office in Chennai?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
High Court Judgement on Breach of Bond and Quantum of Compensation.PD F