My employer wants me to sign an indemnity bond in liue of the increment and promotion.This has not been mentioned at the time of joining(one year back).they have promised me an increment after six months but now after one year they are giving a handsome increment of 30% only when i sign indemnity agreement which is modifying terms of appointment which is the notice period has been incresed from 1 month to three month.I wanted to know that does that bond has any legal implications on me if i leave the job abrubtly after signing the bond as i need increment.Indemnity bond is made on a100 rs stamp paper.they have mentioned that in case of breach of indemnity bond i have to pay three month of salary +150000+12% tax from the date of breaching the bond.Pls tell me how can i deal with the situation as i need increment and at the same time it also dont want to get strucked with bond.I alos want to know the legal implecations on me if i break the indemnity bond.
From India, New Delhi
From India, New Delhi
Hello ashisn,
The answer is straight & simple: You can't have the cake & eat it too !!!
You need to make a choice--no doubt, a tough one--but neverthless that needs to be made.
What the company seems to be doing by this step is to judge whether you can be depended upon for a long-term association or not. That's from their perspective.
However, going by the terms you mentioned, it doesn't seem to adhere to logic or law, since 3 months salary is understandable but the additional 1.5 L + 12% Service Tax may not be sustainable under law or logic.
This suggests one thing: that you MAY have conveyed BOTH that you are capable [& the company doesn't want to loose you] AND that you are soft & pliable [due to which the company can put across such a Bond for your OK].
Since you haven't mentioned your background--position, area, etc--it's tough to mention reg the options open to you now, IF you want to say NO to the raise [and consequently the Bond].
Rgds,
TS
From India, Hyderabad
1637The answer is straight & simple: You can't have the cake & eat it too !!!
You need to make a choice--no doubt, a tough one--but neverthless that needs to be made.
What the company seems to be doing by this step is to judge whether you can be depended upon for a long-term association or not. That's from their perspective.
However, going by the terms you mentioned, it doesn't seem to adhere to logic or law, since 3 months salary is understandable but the additional 1.5 L + 12% Service Tax may not be sustainable under law or logic.
This suggests one thing: that you MAY have conveyed BOTH that you are capable [& the company doesn't want to loose you] AND that you are soft & pliable [due to which the company can put across such a Bond for your OK].
Since you haven't mentioned your background--position, area, etc--it's tough to mention reg the options open to you now, IF you want to say NO to the raise [and consequently the Bond].
Rgds,
TS
From India, Hyderabad
Dear Sir,
Thank you for the reply.
I Am working in an software development company in delhi as assistant manager-Operations.
I am concerned about the legal implications on me if i sign it now and abruptly break it or try to break it.Kindly reply.
From India, New Delhi
Thank you for the reply.
I Am working in an software development company in delhi as assistant manager-Operations.
I am concerned about the legal implications on me if i sign it now and abruptly break it or try to break it.Kindly reply.
From India, New Delhi
Hello ashisn,
If you are in the software industry, you should have no major problems in getting another job.
But, as the terms exist, it's not worth to sign-up, since they are quite illogical. Bonds, in general, are anyway illegal. But here the company seems to be taking you for a ride. Pl note that Service Tax [if that is what the 'tax' means] is unheard of for such situations--that only applies to services rendered by CORPORATES/ENTITIES.
I would suggest: just look for another ethical & fair company & jump. Until then, if you want to buy time, tell them that you need to discuss with your parents about the terms & conditions.
Let's wait for what others have to say.
Rgds,
TS
From India, Hyderabad
If you are in the software industry, you should have no major problems in getting another job.
But, as the terms exist, it's not worth to sign-up, since they are quite illogical. Bonds, in general, are anyway illegal. But here the company seems to be taking you for a ride. Pl note that Service Tax [if that is what the 'tax' means] is unheard of for such situations--that only applies to services rendered by CORPORATES/ENTITIES.
I would suggest: just look for another ethical & fair company & jump. Until then, if you want to buy time, tell them that you need to discuss with your parents about the terms & conditions.
Let's wait for what others have to say.
Rgds,
TS
From India, Hyderabad
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Indemnity Bond - Format.doc