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Dear all,
I had joined in a company as HR Trainee obliged to work for three years by signing an legal agreement(Bond) along with surety who is a government servant, after working for 16 months due to personal problems and for better opportunities i left the company, now the company is asking to pay an amount of Rs.75,000/- stating that bond Violation. They stopped my F&F, PF and relieving.
Key points in the agreement:
1.1st year of service as Trainee, 2nd year probation, 3rd year confirmation.
2. Relationship between company and employer is that of "teacher and student” and not master and servant.
3. Stating that “Company incurred lot of money for training” which is not true and there is no training given as such.
Now company executives are threatening me that they will file case in court if i didn’t pay the money.
I request you all to help me out from this problem by giving your valuable suggestions.
Thanks and regard
Babu

From India, Hyderabad
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Dear Lokesh,

If you have signed a bond at the time of joining, then you have no other way; you have to follow it. If you are not following it, it's a breach of contract, and the company has the right to take actions against you. Generally, a company also signs a bond amount, i.e., if you do not want to continue the service under any circumstances, you have to pay back the amount. Check your bond paper for such a clause. If the new opportunity is good, pay back the amount to your current organization and carry on.

For any clarification, feel free to write or discuss.

From India, Mumbai
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Dear Sir,

Thank you very much for your valuable suggestion. The bond has been executed at the time of joining itself. In the name of giving on-the-job training, I was asked to execute a bond for 3 years, which is not true, as I was handed over core job responsibilities right from the beginning. In such a situation, how can I pay such a huge amount, which is twice the amount I received in the form of a monthly salary?

Please suggest.

Thanks & Regards,
Babu.M

From India, Hyderabad
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Dear Mr. Babu,

If you have a copy of the bond, please read through the agreement literature thoroughly first. If you can prove yourself that they have not trained you and given core job responsibilities, then you can fight with them legally. Consult a good legal advisor in this regard and follow his guidelines. In any case, if your bond is for one year and they have asked for three years, you can win the case. However, it will take time and have a negative impact on your career. It is better to consult the higher officials in your office and request them to relieve you by explaining your case. If they agree, it is even better.

With best regards,
Suneel

From India, Vijayawada
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Dear Lokesh,

Before making any suggestions, I would like to inquire about a few things:

- Firstly, have you formally resigned from your organization?
- Has your employer accepted your resignation?
- Have you completed your notice period as required by your organization?
- Your HR Department handles all entries and exits, so have you discussed your reasons for leaving with them?

Additionally, as suggested by our experienced colleagues, please review your contract once more. I understand that paying a significant amount may pose challenges, but it is always better to communicate with the relevant parties rather than giving in to despair.

Please let me know if you need further assistance or clarification.

Best regards, [Your Name]

From India, Visakhapatnam
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BSSV
212

After taking into consideration the whole discussion above, I would like to add by asking you:

1) This question may seem silly, but yes, it is important: were you sober when signing the agreement?

2) Do you have access to the company policy?

3) Are there any specifications mentioned about the training in the agreement?

4) Have they specified the amount of compensation? Alternatively, could you please send me a copy of your agreement and any related documents like the appointment letter, stipend-paid slips, etc., whatever documents you have and feel are important to ? Let's see what can be done with it.

It's kind of difficult to ask specific questions that could help you without the documents. So, if you feel it necessary, please send them to the given email ID. This seems like an issue related to apprenticeship, and legal help may be available if needed. In any case, it's important to review the agreement, but there's no need to worry too much about it.

From India, Bangalore
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Hello Lokesh Babu,

I am with Prasenjit Mitra.

When you signed the bond, you ought to follow it both in spirit and deed.

You mention that you left 'due to personal problems and for better opportunities'—which of the two is the true reason? When you knew that you had a bond, what made you think of even applying for a new job without giving any thought to the bond—the consequences thereof?

Frankly, I think you took things for granted—that the company wouldn't really bother. Or, that you could get away with it.

You seem to be stressing on 'no training given as such', by saying: 'was handed over core job responsibilities right from the beginning'. Could you please explain what you mean by "core job responsibilities"?

You also mention that you joined as a trainee, which means that there definitely must have been someone mentoring/training/guiding you even in your 'core job responsibilities'. Were you just assigned job responsibilities and targets right from day-1 without any support mechanism in place? I am sure not.

Being an HR person yourself, I do hope you know and realize that many companies (usually SMEs) would rather prefer to train/guide freshers while on the job rather than have structured/separate/formal training sessions—for multiple reasons, some of which are to do with economics. Hope you get the point.

Regards,

TS

From India, Hyderabad
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Dear all,

In India, a bond is illegal. It is only one-sided. As per law, the employer cannot enforce a bond. In various decisions, the various high courts and the Supreme Court have held that the bond system violates the fundamental rights under Article 19 of the Constitution of India. No employer has the right to insist that the employee serves the company against the employee's wishes. The employee has the right to quit the employment at any time they want. It's up to the employee to decide when and until what day they want to work. The only requirement is that due notice should be given to the employer.

From India, Kochi
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Dear Mehrunisa,

Kindly cite some court cases in support from either the High Court in India that will be helpful for this gentleman. I am with you that bonded labor or bondage is against fundamental rights under Article 19 of the Constitution of India.

S K Nain Head HR 09824916886

From India, Ahmadabad
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Dear Lokesh Babu,

The bond you have signed is not enforceable by law because it is not legal and it goes against fundamental rights. Therefore, do not pay the money to the employer. If your employer files any case against you, face it legally with the help of an advocate who has courage and stamina.

Regarding the withdrawal of PF contributions, you can directly submit the withdrawal form to the PF office after obtaining your signature from the bank manager where your account is being operated.

From India, Mumbai
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