Hello All,
I went through all the posts regarding the service bond, but, again, coming from a non-legal background, I need guidance on this matter. I joined my recent company and signed a bond of 3 years, but now I want to leave the company. It has only been 3 months since joining, and the company has not incurred any expenses on me apart from 2.5 months of salary and the induction they conducted for the whole batch of new joiners. My question is, can I leave the company without honoring the bond?
Waiting for a response.
Regards,
Rohit
From India, Ludhiana
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I went through all the posts regarding the service bond, but, again, coming from a non-legal background, I need guidance on this matter. I joined my recent company and signed a bond of 3 years, but now I want to leave the company. It has only been 3 months since joining, and the company has not incurred any expenses on me apart from 2.5 months of salary and the induction they conducted for the whole batch of new joiners. My question is, can I leave the company without honoring the bond?
Waiting for a response.
Regards,
Rohit
From India, Ludhiana
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Dear Rohit,
If you have signed a bond, please stand by it. Do not abscond from the company; it will create legal hassles for you. You can leave the company only if you abide by the clauses and pay the amount mentioned.
Look at it from a different point of view, 3 years will add to your stability and make you more employable. Wish you all the best.
Regards,
Cite Contribution
From India, Mumbai
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1872If you have signed a bond, please stand by it. Do not abscond from the company; it will create legal hassles for you. You can leave the company only if you abide by the clauses and pay the amount mentioned.
Look at it from a different point of view, 3 years will add to your stability and make you more employable. Wish you all the best.
Regards,
Cite Contribution
From India, Mumbai
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Dear Rohit,
Yes, I do recommend what (Cite Contribution) had said. Again, I just need some clarifications. Is the training part the reason for you to quit the company? In which industry are you working? If it is the IT industry, then the training part would be anytime during the bond period. It is not that a company will sponsor a training program for an employee on day one when he/she joins. One main thing is, do you have any prior experience?
Please do not make hasty decisions based on short-term experiences. Kindly post the query in detail with a clear and concise statement for members to provide you with proper feedback and comments.
From India, Bangalore
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Yes, I do recommend what (Cite Contribution) had said. Again, I just need some clarifications. Is the training part the reason for you to quit the company? In which industry are you working? If it is the IT industry, then the training part would be anytime during the bond period. It is not that a company will sponsor a training program for an employee on day one when he/she joins. One main thing is, do you have any prior experience?
Please do not make hasty decisions based on short-term experiences. Kindly post the query in detail with a clear and concise statement for members to provide you with proper feedback and comments.
From India, Bangalore
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Thanks, (Cite Contribution) and Mahesh.
Just to give a more detailed explanation, I am currently working in the financial sector, and I have prior experience of around 3 years with the same IT company. The training part was on a bond period as I signed the agreement before joining the company. Also, the training I mentioned is not specialized training; it is just an induction that every company gives.
Also, if I go to a different sector, the experience here will not matter anyway. Please share your thoughts on this.
From India, Ludhiana
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Just to give a more detailed explanation, I am currently working in the financial sector, and I have prior experience of around 3 years with the same IT company. The training part was on a bond period as I signed the agreement before joining the company. Also, the training I mentioned is not specialized training; it is just an induction that every company gives.
Also, if I go to a different sector, the experience here will not matter anyway. Please share your thoughts on this.
From India, Ludhiana
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Dear Rohit,
First, I would like to clarify that all such kinds of bonds are illegal. No company can make the employee sign a bond, and if they do, employees are under no obligation to abide by it. If bonds were legal, I would have made all my employees sign a bond of 20 years. That would solve all my problems like attrition, retention, etc. If you still want to abide by the bond and you want to quit, you can resign from the company on health grounds by producing a medical certificate, or you can say your parents are moving to another state... there are numerous alibis. If you want some more clarification, please contact me on 9920528059.
Aditya
From India, Mumbai
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First, I would like to clarify that all such kinds of bonds are illegal. No company can make the employee sign a bond, and if they do, employees are under no obligation to abide by it. If bonds were legal, I would have made all my employees sign a bond of 20 years. That would solve all my problems like attrition, retention, etc. If you still want to abide by the bond and you want to quit, you can resign from the company on health grounds by producing a medical certificate, or you can say your parents are moving to another state... there are numerous alibis. If you want some more clarification, please contact me on 9920528059.
Aditya
From India, Mumbai
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Dear All,
Please do not advise anyone to abide by any kind of bond wherein an incumbent has to serve the company for a specified time as these kinds of bonds are illegal. If you don't have clarification, please don't suggest it to others; this may cause confusion and could lead to grave consequences. If you need any clarification on these bonds, please feel free to contact me at 9920528059.
Aditya
From India, Mumbai
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Please do not advise anyone to abide by any kind of bond wherein an incumbent has to serve the company for a specified time as these kinds of bonds are illegal. If you don't have clarification, please don't suggest it to others; this may cause confusion and could lead to grave consequences. If you need any clarification on these bonds, please feel free to contact me at 9920528059.
Aditya
From India, Mumbai
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Dear Rohit,
As per your statement, you have mentioned that the present experience will not matter much if you are planning to shift. Then why didn't you think about all these situations before joining or signing?
From India, Bangalore
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As per your statement, you have mentioned that the present experience will not matter much if you are planning to shift. Then why didn't you think about all these situations before joining or signing?
From India, Bangalore
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Bonds are illegal, whereas agreements are valid. The difference lies in a bond where it is simply stated that the employee shall work with the organization for a specific period of time. On the other hand, in an agreement, it is specified that the employee cannot leave for a certain duration, and if they do, they will be liable to pay a certain amount or will not be issued a relieving letter, etc. This kind of mutual agreement, where conditions regarding what will happen if the employee does not abide by them are clearly mentioned, is completely valid.
Check your letter to determine if it is a bond or an agreement. If it includes conditions, then you must abide by them. If it only mentions the duration of employment, then there is no need to worry, as they cannot take any action against you.
From India, Delhi
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Check your letter to determine if it is a bond or an agreement. If it includes conditions, then you must abide by them. If it only mentions the duration of employment, then there is no need to worry, as they cannot take any action against you.
From India, Delhi
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Dear Riah,
As you have mentioned that the aforementioned agreements are legal, a relieving letter has to be given to every employee mentioning his performance during his tenure, irrespective of his behavior. Only if there are some dues to be settled by the employees, then he cannot be relieved. The employer and employee, in no circumstances, can enter into any kind of bond or agreement wherein the employee is liable to serve the employer for a said time period. This contradicts the Employment Engagement Act and is a punishable act if backed with relevant proof. The employer cannot take/receive money (or equivalent kind) from the employee to retain his services.
From India, Mumbai
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As you have mentioned that the aforementioned agreements are legal, a relieving letter has to be given to every employee mentioning his performance during his tenure, irrespective of his behavior. Only if there are some dues to be settled by the employees, then he cannot be relieved. The employer and employee, in no circumstances, can enter into any kind of bond or agreement wherein the employee is liable to serve the employer for a said time period. This contradicts the Employment Engagement Act and is a punishable act if backed with relevant proof. The employer cannot take/receive money (or equivalent kind) from the employee to retain his services.
From India, Mumbai
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Bonds are illegal whereas Agreements are also not valid if against any basic laws vijay tapadiya
From India, Mumbai
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From India, Mumbai
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'Employment Engagement Act' ???? is there such legislation in existance. Is it a 'Act' or Imagination ??? never heard of such legislation!!!
From India, Pune
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From India, Pune
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What is the difference between a bond and an agreement? Can someone shed some light here?
As per my understanding of the law:
What is a bond?
A bond is a written and signed promise to pay a certain sum of money on a specific date or upon the fulfillment of a specified condition. All documented contracts and loan agreements fall under the category of bonds. Additionally, as per section 2(5) of the Indian Stamp Act, a bond is defined as:
(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;
(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and
(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another.
Now, what is an agreement? It is defined under the Indian Contract Act as:
Section 2(h) of the Act defines the term contract as "an agreement enforceable by law."
Section 2(e) defines an agreement as "every promise and every set of promises, forming the consideration for each other."
Furthermore, Section 2(b) defines a promise as "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise."
All these fall under service agreements. In essence, a bond is a narrower term, whereas agreements are more generic. All bonds are agreements.
Therefore, it is essential to understand the meanings of both terms before offering suggestions on the matter at hand.
Regarding the question posed by a member on whether they can break a service agreement or bond that requires them to serve the organization for a specified period:
Such agreements are neither inherently legal nor illegal; their validity depends on the facts and circumstances of each case.
If it is a simple agreement and the organization has not incurred any expenses on your training or development, they cannot claim anything from you other than denying you a relieving letter, for instance. They cannot enforce such terms in a court of law.
However, if the organization has invested in your training, you may be liable to reimburse the actual costs incurred for your skill development or training. In such cases, the court may only require you to repay the specific amount spent, not the entire bond amount. Such agreements are typically referred to as training agreements or bonds and are applicable for a reasonable duration.
Regards
From India, Delhi
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As per my understanding of the law:
What is a bond?
A bond is a written and signed promise to pay a certain sum of money on a specific date or upon the fulfillment of a specified condition. All documented contracts and loan agreements fall under the category of bonds. Additionally, as per section 2(5) of the Indian Stamp Act, a bond is defined as:
(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;
(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and
(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another.
Now, what is an agreement? It is defined under the Indian Contract Act as:
Section 2(h) of the Act defines the term contract as "an agreement enforceable by law."
Section 2(e) defines an agreement as "every promise and every set of promises, forming the consideration for each other."
Furthermore, Section 2(b) defines a promise as "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise."
All these fall under service agreements. In essence, a bond is a narrower term, whereas agreements are more generic. All bonds are agreements.
Therefore, it is essential to understand the meanings of both terms before offering suggestions on the matter at hand.
Regarding the question posed by a member on whether they can break a service agreement or bond that requires them to serve the organization for a specified period:
Such agreements are neither inherently legal nor illegal; their validity depends on the facts and circumstances of each case.
If it is a simple agreement and the organization has not incurred any expenses on your training or development, they cannot claim anything from you other than denying you a relieving letter, for instance. They cannot enforce such terms in a court of law.
However, if the organization has invested in your training, you may be liable to reimburse the actual costs incurred for your skill development or training. In such cases, the court may only require you to repay the specific amount spent, not the entire bond amount. Such agreements are typically referred to as training agreements or bonds and are applicable for a reasonable duration.
Regards
From India, Delhi
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Very well said essykkr. This is how a legal point should be addressed. I request fellow citehr members to follow the example of 'essykkr' and not to post unless you have full knowledge of the subject. I have highlighted below the important facts posted by essykk, which will help all of us to wipe out all wrong advice posted earlier in this thread.
From India, Pune
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From India, Pune
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Thank you all for your replies; I really appreciate the seriousness with which people on this forum are ready to help fellow members.
As mentioned by essykkr in the last paragraph, the legality of the bond is assessed on a case-by-case basis. However, whether the company has invested money in training or skill development is a primary concern regarding potential recovery by the company.
Apart from the salary, the company has not paid me anything, and there was only a 15-day induction. Although the company mentions a one-year on-the-job training period, I am currently isolated in a remote office without any supervision or guidance.
So, should the company's expenditure on skill development be specific, or can the company also consider the salary as part of skill development?
Furthermore, if I demonstrate that my next employment (planning to partner with my friend in an education and training institute in my hometown) is unrelated to the company's business, will that support my case?
I understand that I may be delving into too many details, but even a brief comment will be of great assistance.
Thank you again for your help.
From India, Ludhiana
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As mentioned by essykkr in the last paragraph, the legality of the bond is assessed on a case-by-case basis. However, whether the company has invested money in training or skill development is a primary concern regarding potential recovery by the company.
Apart from the salary, the company has not paid me anything, and there was only a 15-day induction. Although the company mentions a one-year on-the-job training period, I am currently isolated in a remote office without any supervision or guidance.
So, should the company's expenditure on skill development be specific, or can the company also consider the salary as part of skill development?
Furthermore, if I demonstrate that my next employment (planning to partner with my friend in an education and training institute in my hometown) is unrelated to the company's business, will that support my case?
I understand that I may be delving into too many details, but even a brief comment will be of great assistance.
Thank you again for your help.
From India, Ludhiana
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BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc