Hi Friends, Employers (Especially middle level orgn.) get contract or Bond signed from the new joinees(Freshers) for 2 or 3 years. Is this bond or Contract legal? Regards, Suresh
From India, Madras
Acknowledge(0)
Amend(0)
1From India, Madras
Acknowledge(0)Amend(0)
Hi,
Even I am interested in knowing so. I have recently received an offer, but they are asking me to sign a bond, and I do not want to do so. Though the offer seems good, I feel that if I sign the bond, my growth would be stagnated. Does this really happen?
From India, Calcutta
Acknowledge(0)Amend(0)
Even I am interested in knowing so. I have recently received an offer, but they are asking me to sign a bond, and I do not want to do so. Though the offer seems good, I feel that if I sign the bond, my growth would be stagnated. Does this really happen?
From India, Calcutta
Acknowledge(0)Amend(0)
Hi all,
It is a bond, because there is no point for the company if it is just a clause or a say. I think if the incumbent does not serve the bond period, he is sent a legal notice or needs to pay for the unserved period. This is what I have seen in many companies, and even we do it. Sometimes, it could be at the management's discretion to relieve the person, provided the issue is really serious and genuine.
Regards,
Srilatha
From India, Hyderabad
Acknowledge(0)Amend(0)
It is a bond, because there is no point for the company if it is just a clause or a say. I think if the incumbent does not serve the bond period, he is sent a legal notice or needs to pay for the unserved period. This is what I have seen in many companies, and even we do it. Sometimes, it could be at the management's discretion to relieve the person, provided the issue is really serious and genuine.
Regards,
Srilatha
From India, Hyderabad
Acknowledge(0)Amend(0)
HI ALL, PLS go ahead and sign the bond ...No issues ..company can just recover the training cost etc ... :) Nothing else as per law ... Regds, Lakshminarayanan
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Friends, If employee breaks the bond can employer file a case against that employee. Is this valid under law. If valid may i know under which law. Regards, Suresh
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Hi All,
A bond does not hold any water as per law, and it is illegal too, as per the Bonded Labour Abolition Act. On the other hand, a contract and its terms are mutually agreed upon by the parties. In a contract, a clause must be included for the termination of the contract by either party. Only the training expenses can be recovered by the employee if an agreement has been signed to that effect. The word "bond" will only invite problems.
Rgds,
Deepak 🤯
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
A bond does not hold any water as per law, and it is illegal too, as per the Bonded Labour Abolition Act. On the other hand, a contract and its terms are mutually agreed upon by the parties. In a contract, a clause must be included for the termination of the contract by either party. Only the training expenses can be recovered by the employee if an agreement has been signed to that effect. The word "bond" will only invite problems.
Rgds,
Deepak 🤯
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply is mostly correct. However, it would be beneficial to clarify that while bonds are generally not legal, some countries may have specific regulations regarding training cost recovery. Overall, the response provides good insights on contracts and bonds. (1 Acknowledge point)
0
0
It is a dicey situation. Legally, as rightly said by our colleagues, only training costs can be recovered. But what actually happens.
Most companies put trainees on the job after some initial induction. Very few actually have structured training programs. So the companies that put trainees on the job can only recover the initial costs of induction. However, when they go to court, they claim that the individual was attached to a specific person, no work was being taken from him, and that person used to spend at least one hour every day training the trainee. This way, they add up the costs, which include the stipend as well.
Companies have a lot of resources to fight their case, whereas individuals lack resources. Ultimately, courts rule that costs have to be paid back in installments.
So the final result generally is if a company decides to go to court, the individual is forced to pay back the money as per the terms of the bond but in installments.
KKT
From India, Delhi
Acknowledge(0)Amend(0)
Most companies put trainees on the job after some initial induction. Very few actually have structured training programs. So the companies that put trainees on the job can only recover the initial costs of induction. However, when they go to court, they claim that the individual was attached to a specific person, no work was being taken from him, and that person used to spend at least one hour every day training the trainee. This way, they add up the costs, which include the stipend as well.
Companies have a lot of resources to fight their case, whereas individuals lack resources. Ultimately, courts rule that costs have to be paid back in installments.
So the final result generally is if a company decides to go to court, the individual is forced to pay back the money as per the terms of the bond but in installments.
KKT
From India, Delhi
Acknowledge(0)Amend(0)
I agree with what Krishan says' it s ultimately the company which is going to be the upperhand, if the terms and policies are not followed as disclosed. Regards Srilatha
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Good one.
I have also signed a bond for 18 months when I went abroad for one month. I served almost 14 months but did not resign. I was absent for 15 days without providing written information. They sent me a letter to resume service on a specific date. When I tried to rejoin on that date, they were not prepared to have me back and demanded money for the bond or another three-year bond. I refused and returned. They continued to send advisory letters, and after two months, in the last letter, they declared my service abandoned and asked for settlement from accounts. I have not resigned yet. Now, they have created a fraudulent resignation letter claiming the bond amount needs to be returned through an Advocate notice.
Even after the fraudulent resignation letter, I have received advisory letters from the company dated after that.
What can they legally do? Is it valid?
From India, Pune
Acknowledge(0)Amend(0)
0
0
I have also signed a bond for 18 months when I went abroad for one month. I served almost 14 months but did not resign. I was absent for 15 days without providing written information. They sent me a letter to resume service on a specific date. When I tried to rejoin on that date, they were not prepared to have me back and demanded money for the bond or another three-year bond. I refused and returned. They continued to send advisory letters, and after two months, in the last letter, they declared my service abandoned and asked for settlement from accounts. I have not resigned yet. Now, they have created a fraudulent resignation letter claiming the bond amount needs to be returned through an Advocate notice.
Even after the fraudulent resignation letter, I have received advisory letters from the company dated after that.
What can they legally do? Is it valid?
From India, Pune
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The situation described raises concerns about the legality of the bond and the employer's actions. Legal actions like creating a fraudulent resignation letter can have serious consequences. Seek legal counsel for guidance. (1 Acknowledge point)
0
0
I was working in one of the IT companies, Newway IT company, as a software developer. They forced me to sign a service bond for 2 years. After 3-4 months, because of unhealthy working conditions, they have not given me a copy of the bond. In the appointment letter, it was stated that I am in a probation period of 6 months. Now, they are sending a legal notice and harassing me since I have broken the bond; I am supposed to pay them Rs 2,00,000. They have not provided me with any training since I was experienced. Also, I have submitted my resignation and completed the handover. After leaving that company, I have not joined any other company. I am still unemployed.
Do they really have the right to go to court? There was no overseas training, only induction for a few hours that was not related to my work profile. I have also sent a resignation email and completed the handover.
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
Do they really have the right to go to court? There was no overseas training, only induction for a few hours that was not related to my work profile. I have also sent a resignation email and completed the handover.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The employer cannot enforce a service bond if no training was provided. You are not liable to pay any amount in this scenario. Seek legal advice. (1 Acknowledge point)
0
0
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Service Bonds - for Training Programs.docx
Legal Clarification on Negative Covenants in Employment Agreements.pdf
CiteHR.AI
(Fact Checked)-The employer can take legal action if an employee violates a bond. Enforcement depends on the terms of the bond and relevant laws. (1 Acknowledge point)