Plz help me know the legal repercussions of breaking following service bond:
Appointment letter
1. Your appointment will be as Officer on probation on a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover the dues of the company if any, from you, and/or claim damages, if any, from you are expressely reserved, and shall not be affected or deemed to be waived by any reference to the service terms and conditions and the rules and regulations of the company or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per draft enclosed) to serve the company for a period of min two years, duly executed by you and solvent sureties on stamp paper of Rs 100. The bond excuted by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as also the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory on your part to serve min of three months notice in writing in this regard, or pay amount equivalent to three months salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation with the service bond to be executed by you.
Service Bond:
This Service bond is executed by Mr.X in favour of the company Y on date….
Whereas, Mr. X is selected by the company Y to be appointed as officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr.X has agreed to serve the company for a min. period of two years from the date of joining, which includes the probation period.
And whereas the company felt itnecessary that Mr X shall execute a bond in favour of the company for serving a period of two years from the date of joining, in view off the cost incurred by the company in respect of the process of selection, training, induction etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in the favour of the company under terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B has agreed to stand as sureties for Mr. X. Both sureties have executed this bond with knowledge that in the event Mr. X failed to fulfill obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses etc. that company has incurred or will incur due to failure of Mr.X to fulfill obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr X with effect from the date of joining on the basic salary of xyz, in the grade of so-n –so, and such other allowances admissible under rules.
2. The said Mr X agrees that he shall serve the company for a min period of two years.
3. The said Mr.X has agreed and hereby agrees and undertakes that in the event , he leaving/resining the services of the company during the subsistence of this bond, and/or he making it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever , than he shall pay the company liquidated damage of Rs 2,00,000. Or 3 months gross salary, whichever is higher. Mr X also agrees that the company shall have lien to all amounts duet o him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
From India, undefined
Appointment letter
1. Your appointment will be as Officer on probation on a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover the dues of the company if any, from you, and/or claim damages, if any, from you are expressely reserved, and shall not be affected or deemed to be waived by any reference to the service terms and conditions and the rules and regulations of the company or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per draft enclosed) to serve the company for a period of min two years, duly executed by you and solvent sureties on stamp paper of Rs 100. The bond excuted by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as also the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory on your part to serve min of three months notice in writing in this regard, or pay amount equivalent to three months salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation with the service bond to be executed by you.
Service Bond:
This Service bond is executed by Mr.X in favour of the company Y on date….
Whereas, Mr. X is selected by the company Y to be appointed as officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr.X has agreed to serve the company for a min. period of two years from the date of joining, which includes the probation period.
And whereas the company felt itnecessary that Mr X shall execute a bond in favour of the company for serving a period of two years from the date of joining, in view off the cost incurred by the company in respect of the process of selection, training, induction etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in the favour of the company under terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B has agreed to stand as sureties for Mr. X. Both sureties have executed this bond with knowledge that in the event Mr. X failed to fulfill obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses etc. that company has incurred or will incur due to failure of Mr.X to fulfill obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr X with effect from the date of joining on the basic salary of xyz, in the grade of so-n –so, and such other allowances admissible under rules.
2. The said Mr X agrees that he shall serve the company for a min period of two years.
3. The said Mr.X has agreed and hereby agrees and undertakes that in the event , he leaving/resining the services of the company during the subsistence of this bond, and/or he making it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever , than he shall pay the company liquidated damage of Rs 2,00,000. Or 3 months gross salary, whichever is higher. Mr X also agrees that the company shall have lien to all amounts duet o him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
From India, undefined
Dear Sirs, plz tell me the legal repercussions of breaking the follwing service bond :
Service Bond:
This Service bond is executed by Mr.X in favour of the company Y on date….
Whereas, Mr. X is selected by the company Y to be appointed as officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr.X has agreed to serve the company for a min. period of two years from the date of joining, which includes the probation period.
And whereas the company felt itnecessary that Mr X shall execute a bond in favour of the company for serving a period of two years from the date of joining, in view off the cost incurred by the company in respect of the process of selection, training, induction etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in the favour of the company under terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B has agreed to stand as sureties for Mr. X. Both sureties have executed this bond with knowledge that in the event Mr. X failed to fulfill obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses etc. that company has incurred or will incur due to failure of Mr.X to fulfill obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr X with effect from the date of joining on the basic salary of xyz, in the grade of so-n –so, and such other allowances admissible under rules.
2. The said Mr X agrees that he shall serve the company for a min period of two years.
3. The said Mr.X has agreed and hereby agrees and undertakes that in the event , he leaving/resining the services of the company during the subsistence of this bond, and/or he making it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever , than he shall pay the company liquidated damage of Rs 2,00,000. Or 3 months gross salary, whichever is higher. Mr X also agrees that the company shall have lien to all amounts duet o him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
Appointment letter
1. Your appointment will be as Officer on probation on a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover the dues of the company if any, from you, and/or claim damages, if any, from you are expressely reserved, and shall not be affected or deemed to be waived by any reference to the service terms and conditions and the rules and regulations of the company or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per draft enclosed) to serve the company for a period of min two years, duly executed by you and solvent sureties on stamp paper of Rs 100. The bond excuted by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as also the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory on your part to serve min of three months notice in writing in this regard, or pay amount equivalent to three months salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation with the service bond to be executed by you.
From India, undefined
Service Bond:
This Service bond is executed by Mr.X in favour of the company Y on date….
Whereas, Mr. X is selected by the company Y to be appointed as officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr.X has agreed to serve the company for a min. period of two years from the date of joining, which includes the probation period.
And whereas the company felt itnecessary that Mr X shall execute a bond in favour of the company for serving a period of two years from the date of joining, in view off the cost incurred by the company in respect of the process of selection, training, induction etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in the favour of the company under terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B has agreed to stand as sureties for Mr. X. Both sureties have executed this bond with knowledge that in the event Mr. X failed to fulfill obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses etc. that company has incurred or will incur due to failure of Mr.X to fulfill obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr X with effect from the date of joining on the basic salary of xyz, in the grade of so-n –so, and such other allowances admissible under rules.
2. The said Mr X agrees that he shall serve the company for a min period of two years.
3. The said Mr.X has agreed and hereby agrees and undertakes that in the event , he leaving/resining the services of the company during the subsistence of this bond, and/or he making it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever , than he shall pay the company liquidated damage of Rs 2,00,000. Or 3 months gross salary, whichever is higher. Mr X also agrees that the company shall have lien to all amounts duet o him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
Appointment letter
1. Your appointment will be as Officer on probation on a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover the dues of the company if any, from you, and/or claim damages, if any, from you are expressely reserved, and shall not be affected or deemed to be waived by any reference to the service terms and conditions and the rules and regulations of the company or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per draft enclosed) to serve the company for a period of min two years, duly executed by you and solvent sureties on stamp paper of Rs 100. The bond excuted by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as also the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory on your part to serve min of three months notice in writing in this regard, or pay amount equivalent to three months salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation with the service bond to be executed by you.
From India, undefined
First of all breaking a bond which you have knowingly entered into is not good.
Moral values come into question where you are breaking a bond of service.
Your new employer may also think in his mind whether you will run away from here also if going is tough or some offers you a better carrot.
Legally you will be forced to pay 3 months Gross pay in lieu of notice and bond money.
If you give notice then bond money will be payable if there is breach of terms and conditions governing the the bond.Bond amount could probably be contested in a court of law as to quantum but you will be forced to pay reasonable amount for training etc.
My unsolicited advice would avoid breaking bonds.
From India, Pune
3131Moral values come into question where you are breaking a bond of service.
Your new employer may also think in his mind whether you will run away from here also if going is tough or some offers you a better carrot.
Legally you will be forced to pay 3 months Gross pay in lieu of notice and bond money.
If you give notice then bond money will be payable if there is breach of terms and conditions governing the the bond.Bond amount could probably be contested in a court of law as to quantum but you will be forced to pay reasonable amount for training etc.
My unsolicited advice would avoid breaking bonds.
From India, Pune
I am working with an insurance company, I am leaving the job within 20days of joining. Is there any rule for notice period for banks and insurance companies?
From India, undefined
From India, undefined
Very often, both the employer and employees are entering into agreement, knowingly/unknowingly, which is void abinitio (i.e. illegal from its beginning). I can't enter into an agreement with someone that I will take him to lunar.
Finding/searching of a better chance, is one’s constitutional right. One can’t bind it through any agreement. And three months’ notice period is a vague term. The company, who is doing agreement, keeping this sort of term (three months notice period), do they ever think that, if every company/institution of the country use to bind their employees, keeping this 3 months term, will they get any experienced employee from the market, for their own? Will they wait for 3 months for their own? If it is not, how they can do so?
In my view, it is completely contradictory and violation of law and constitution. One can't do whatever they like. Yes, in case of legitimate investment behind the employee (which can be quantified and can justifiably be proved) in the part of employer, that can be settled, that too, upto a legitimate service period and not after that.
From India, Calcutta
Finding/searching of a better chance, is one’s constitutional right. One can’t bind it through any agreement. And three months’ notice period is a vague term. The company, who is doing agreement, keeping this sort of term (three months notice period), do they ever think that, if every company/institution of the country use to bind their employees, keeping this 3 months term, will they get any experienced employee from the market, for their own? Will they wait for 3 months for their own? If it is not, how they can do so?
In my view, it is completely contradictory and violation of law and constitution. One can't do whatever they like. Yes, in case of legitimate investment behind the employee (which can be quantified and can justifiably be proved) in the part of employer, that can be settled, that too, upto a legitimate service period and not after that.
From India, Calcutta
If employee has left after 20 days,hardly any amount would have been spent on training etc. That portion of amount if it can be quantified can definitely be recovered from employee.
From India, Pune
From India, Pune
What does your appointment letter say. You must be on probation If you read the appointment letter it will have clause for resignation
From India, Chennai
From India, Chennai
thankyou Prakritish Bagchi, for your guidance.
to Mr. Rajasekaran, i have written all clauses related to joining or resigning process. so most of the agreement are here only (except some very general terms).
thankyou Mr Nathrao for your guidance
From India, undefined
to Mr. Rajasekaran, i have written all clauses related to joining or resigning process. so most of the agreement are here only (except some very general terms).
thankyou Mr Nathrao for your guidance
From India, undefined
i have been sent a notice from a lawyer (with signature but no seal), that he is sending this letter on behalf of the company (again no sign or seal from the company), asking to pay 3lakhs within 7 days. again no mention of 7days from what date, and to which account the sum has to be deposited. i have two query on this:
1. is this a genuine notice ? how do i confirm?
2. if yes , then what am I suppose to do? because there is no proper mention of method of paying back
also, it says that if i dont pay within 7 days, they will go in court and start criminal procedure against me.
From India, undefined
1. is this a genuine notice ? how do i confirm?
2. if yes , then what am I suppose to do? because there is no proper mention of method of paying back
also, it says that if i dont pay within 7 days, they will go in court and start criminal procedure against me.
From India, undefined
You need to consult a lawyer who deals in contract matters.
You have knowingly entered into a contract with the said terms of liquidated damages/notice period etc.
Breaking a contract involves two issues-moral and legal.
You have left within 20 days of joining as such.
You have many points to contest the matter legally.
Company cannot try and recover their administrative costs of hiring you.
Yes Training costs can be quantified and may be recoverable if it is reasonable.
Whether 3 months notice is reasonable?
But you have willingly accepted it.
A lawyer can advice you on all these points.
Probably you need to check from the person who has sent you the letter his locus standi in the matter.
In your place I would speak to the company and see whether they are amenable to reason(though sending the notice shows they are not)
You have certain legal defences,but are you ready for a court battle?
Normally all legal notices are full of language which is meant to overawe you,but read it calmly and as I have repeatedly advised take legal help.
From India, Pune
You have knowingly entered into a contract with the said terms of liquidated damages/notice period etc.
Breaking a contract involves two issues-moral and legal.
You have left within 20 days of joining as such.
You have many points to contest the matter legally.
Company cannot try and recover their administrative costs of hiring you.
Yes Training costs can be quantified and may be recoverable if it is reasonable.
Whether 3 months notice is reasonable?
But you have willingly accepted it.
A lawyer can advice you on all these points.
Probably you need to check from the person who has sent you the letter his locus standi in the matter.
In your place I would speak to the company and see whether they are amenable to reason(though sending the notice shows they are not)
You have certain legal defences,but are you ready for a court battle?
Normally all legal notices are full of language which is meant to overawe you,but read it calmly and as I have repeatedly advised take legal help.
From India, Pune
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