Dear All,
Two months before I joined a company, I signed a service bond as well as an indemnity bond for two years. However, after joining, I have found that the working environment and work culture are not employee-friendly. I am considering quitting, but I am concerned as I have signed a bond. Is it possible for me to resign or quit under these circumstances? Please help me as I am worried about this issue.
Waiting for a response.
From India, Mumbai
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4Two months before I joined a company, I signed a service bond as well as an indemnity bond for two years. However, after joining, I have found that the working environment and work culture are not employee-friendly. I am considering quitting, but I am concerned as I have signed a bond. Is it possible for me to resign or quit under these circumstances? Please help me as I am worried about this issue.
Waiting for a response.
From India, Mumbai
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If you have signed a bond, you have to pay the amount that is mentioned in the bond in order to get official documents.
If you do not need a relieving letter and other things, do not go to the office. If you receive a call, do not answer it. Nothing will happen. It would be a risky but effective way to get rid of such problems.
Thanks,
Deepa
Blogs: Famous Great All In One Famous Great All In One
From India, Mumbai
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If you do not need a relieving letter and other things, do not go to the office. If you receive a call, do not answer it. Nothing will happen. It would be a risky but effective way to get rid of such problems.
Thanks,
Deepa
Blogs: Famous Great All In One Famous Great All In One
From India, Mumbai
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Not possible.
We have a bond in an MNC, and so many people ran away during the bond. Nothing happened.
I maintain a blog; you are invited to visit my blog and join on Facebook.
Thanks,
Deepa
Blogs - Famous Great All In One
http://famousgreatandall.blogspot.com/
Facebook - https://www.facebook.com/famousgreatandall
From India, Mumbai
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We have a bond in an MNC, and so many people ran away during the bond. Nothing happened.
I maintain a blog; you are invited to visit my blog and join on Facebook.
Thanks,
Deepa
Blogs - Famous Great All In One
http://famousgreatandall.blogspot.com/
Facebook - https://www.facebook.com/famousgreatandall
From India, Mumbai
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Dear Vineet,
As per law, "bonded labour" is illegal. However, if you have signed a service agreement (commonly termed as a bond) to serve in the company for 2 years, then you need to check the following:
- Did the company provide any kind of specialized knowledge/training to you for which you had to sign the bond? If yes, then the bond is valid.
- Did the company invest a significant amount of money in providing any specialized knowledge/training to you? If yes, then the bond is valid.
- Did the company incur costs to send you abroad to transition a business/process to India? If yes, then the bond is valid.
Even if the bond is valid, you can still resign, pay the penalty for breaking the bond, and get relieved. If the company did not incur significant costs or provide any specialized skills or add significant value to your knowledge/skills and simply got the bond signed to curtail their attrition/business impact, then the bond is not legally enforceable.
Hope this helps.
Regards,
Ritesh Shah
From India, Pune
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As per law, "bonded labour" is illegal. However, if you have signed a service agreement (commonly termed as a bond) to serve in the company for 2 years, then you need to check the following:
- Did the company provide any kind of specialized knowledge/training to you for which you had to sign the bond? If yes, then the bond is valid.
- Did the company invest a significant amount of money in providing any specialized knowledge/training to you? If yes, then the bond is valid.
- Did the company incur costs to send you abroad to transition a business/process to India? If yes, then the bond is valid.
Even if the bond is valid, you can still resign, pay the penalty for breaking the bond, and get relieved. If the company did not incur significant costs or provide any specialized skills or add significant value to your knowledge/skills and simply got the bond signed to curtail their attrition/business impact, then the bond is not legally enforceable.
Hope this helps.
Regards,
Ritesh Shah
From India, Pune
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Dear,
As per fundamental rights, corporate governance, and labor law, you are not bound to work in any organization, even if you have signed a bond or any consent. You have mentioned that the environment is not good for work. In this concern, you can file a suit against the company culture, behavior, and the threat of the signed bond. The company will have to pay compensation as well as your FnF without any deduction.
From India, Delhi
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As per fundamental rights, corporate governance, and labor law, you are not bound to work in any organization, even if you have signed a bond or any consent. You have mentioned that the environment is not good for work. In this concern, you can file a suit against the company culture, behavior, and the threat of the signed bond. The company will have to pay compensation as well as your FnF without any deduction.
From India, Delhi
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I am surprised most members are giving advice without thinking, with answers that may put the poster in a problem. Please think carefully before giving misleading replies.
Vineet, first, as Ritesh Shah says, you need to give us details of the bond and the circumstances. If you do not give full information, then you will get half-baked answers which will lead you on the wrong path.
1. What is the wording of the bond?
2. Have they provided you with any training?
3. If so, what is the cost of the training?
4. What is the exit clause in the agreement? How much is the amount payable?
5. What have you been doing in the last 2 months, and what is your designation?
The reply as to whether you are legally allowed to leave without completing your tenure and whether the company can successfully file a legal case against you in court will depend on that. Whether the company will or will not file a case, I or anyone in the forum will not be able to say. It depends on how important you are, what attitude they have towards people not completing the bond, and whether they wish to make an example of you.
From India, Mumbai
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Vineet, first, as Ritesh Shah says, you need to give us details of the bond and the circumstances. If you do not give full information, then you will get half-baked answers which will lead you on the wrong path.
1. What is the wording of the bond?
2. Have they provided you with any training?
3. If so, what is the cost of the training?
4. What is the exit clause in the agreement? How much is the amount payable?
5. What have you been doing in the last 2 months, and what is your designation?
The reply as to whether you are legally allowed to leave without completing your tenure and whether the company can successfully file a legal case against you in court will depend on that. Whether the company will or will not file a case, I or anyone in the forum will not be able to say. It depends on how important you are, what attitude they have towards people not completing the bond, and whether they wish to make an example of you.
From India, Mumbai
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First, do you want to work there, or do you not want to work there? The solutions depend on that. Second, you have to give more information about your organization, set up, department, how it works, etc., and details of yourself, experience, etc.
From India, Mumbai
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From India, Mumbai
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Hi Vineet,
First of all, there were a lot of discussions that happened on this site regarding the same situation. Please use the search tab to get a fair idea after reading through those. Again, as Saswata said, did your company invest directly or indirectly in you? Yes, bonded labor is not legal in India, unless the company has invested in him/her.
Secondly, are you a fresher or do you have any experience in the field you are working in? Generally, people who leave a company in 2 months will not include that company's details on their CV or disclose it to the next employer. In most cases, the employee absconds. Let us know more details so that we can shed some light on the situation.
From India, Bangalore
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First of all, there were a lot of discussions that happened on this site regarding the same situation. Please use the search tab to get a fair idea after reading through those. Again, as Saswata said, did your company invest directly or indirectly in you? Yes, bonded labor is not legal in India, unless the company has invested in him/her.
Secondly, are you a fresher or do you have any experience in the field you are working in? Generally, people who leave a company in 2 months will not include that company's details on their CV or disclose it to the next employer. In most cases, the employee absconds. Let us know more details so that we can shed some light on the situation.
From India, Bangalore
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As per the Indian Statute, the bonded labor system was long abolished, and no bond can force any person to work against the employee's wishes.
As per Section 27 of the Contract Act, 1872, any agreement in restraint of trade or profession is void. Therefore, any terms and conditions of the agreement that directly or indirectly compel the employee to serve the employer or restrict them from joining a competitor or another employer are not valid under the law.
The employee, by signing a contract of employment, does not sign a bond of slavery, and therefore, the employee always has the right to resign from employment, even if they have agreed to serve the employer for a specific time period.
However, if any clause is inserted for the recovery of costs for training the employee abroad, or any costs invested in specific training, it may be recovered from the employee. (The Supreme Court has also given judgments favoring the collection of the actual expenses accrued, irrespective of the agreed amount.) (Sicpa India Limited v Shri Manas Pratim Deb)
Nobody can hold you if you are willing to join another company, provided proper notice should be given as per the company policy/standing order/agreement.
As per Sec 368 of the Indian Penal Code, if any person or institute holds back any document or uses any legal document or threatens any legal suits or actions, thus forcing a person to perform any act against their wishes or which is illegal or wrong as per the statute of the Law of the land.
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 court has also stated that the employer cannot hold back any personal documents of the employees as they are earned by the employees, and the company has no claim to the same.
From India, Coimbatore
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As per Section 27 of the Contract Act, 1872, any agreement in restraint of trade or profession is void. Therefore, any terms and conditions of the agreement that directly or indirectly compel the employee to serve the employer or restrict them from joining a competitor or another employer are not valid under the law.
The employee, by signing a contract of employment, does not sign a bond of slavery, and therefore, the employee always has the right to resign from employment, even if they have agreed to serve the employer for a specific time period.
However, if any clause is inserted for the recovery of costs for training the employee abroad, or any costs invested in specific training, it may be recovered from the employee. (The Supreme Court has also given judgments favoring the collection of the actual expenses accrued, irrespective of the agreed amount.) (Sicpa India Limited v Shri Manas Pratim Deb)
Nobody can hold you if you are willing to join another company, provided proper notice should be given as per the company policy/standing order/agreement.
As per Sec 368 of the Indian Penal Code, if any person or institute holds back any document or uses any legal document or threatens any legal suits or actions, thus forcing a person to perform any act against their wishes or which is illegal or wrong as per the statute of the Law of the land.
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 court has also stated that the employer cannot hold back any personal documents of the employees as they are earned by the employees, and the company has no claim to the same.
From India, Coimbatore
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BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc