Hi,
One of my friend who is a fresher has got a placement with a reputed IT Firm.
At the time of offer,They are asking him to sign a 2 year bond with them.In case he leaves the organisation before the 2 year period,Then he will have to pay the company an amount equivalent to 2 month's salary.The company has asked for his original docs too.They are wanting to retain it with them for the two year period.
According to me this is illegal.I reckon the company is resorting to this tactic for fresher hiring.
Looking forward to some inputs from this forum for proper understanding on the subject.
Thank you in advance.
Rgds//
From India, Ahmedabad
2One of my friend who is a fresher has got a placement with a reputed IT Firm.
At the time of offer,They are asking him to sign a 2 year bond with them.In case he leaves the organisation before the 2 year period,Then he will have to pay the company an amount equivalent to 2 month's salary.The company has asked for his original docs too.They are wanting to retain it with them for the two year period.
According to me this is illegal.I reckon the company is resorting to this tactic for fresher hiring.
Looking forward to some inputs from this forum for proper understanding on the subject.
Thank you in advance.
Rgds//
From India, Ahmedabad
Hi,
First of all it is unprofessional to keep original documents but some small companies use this practice. In India their is no as such legal obligation of Employment bond until it is not on legal papers. Coming back to submitting original docs is very risky affair. Think about the situation if they are not ready to provide the documents back on time. He would be in serious trouble.
My suggestion would be Do not encourage this kind of practice. its not the last company in the world.
regards
PD
From India, Pune
First of all it is unprofessional to keep original documents but some small companies use this practice. In India their is no as such legal obligation of Employment bond until it is not on legal papers. Coming back to submitting original docs is very risky affair. Think about the situation if they are not ready to provide the documents back on time. He would be in serious trouble.
My suggestion would be Do not encourage this kind of practice. its not the last company in the world.
regards
PD
From India, Pune
""The company has asked for his original docs too.""
The requirement is illegal.
Yes,they can ask to see original documents for verification,take xerox copies and RETURN original immediately to employee.
Bond for two lakhs is also meaningless unless some special training is given to employee and to secure training costs,company wants a bond.
After private companies are not like Air India which spends 10s of lakhs in training pilots without taking any bond.
The company is taking lot of extra steps to retain employees by some sort of compulsion,instead of being an employee friendly company.
From India, Pune
The requirement is illegal.
Yes,they can ask to see original documents for verification,take xerox copies and RETURN original immediately to employee.
Bond for two lakhs is also meaningless unless some special training is given to employee and to secure training costs,company wants a bond.
After private companies are not like Air India which spends 10s of lakhs in training pilots without taking any bond.
The company is taking lot of extra steps to retain employees by some sort of compulsion,instead of being an employee friendly company.
From India, Pune
Agree with Mr Prakash and Mr Nathrao. Your friend needs to think again about this offer.
From Malaysia, Kuala Lumpur
From Malaysia, Kuala Lumpur
In case your friend is in dire need of employment, you can sign two year's bond but ensure that there is a termination clause on either side so that he can leave in between in case of better opportunities. Company cannot make one sided agreement and if made, it cannot stand in the court of law, as has been confirmed by a number of judgements, including one in DLF.
Please do not give original certificates and give only self-attested copies as they will hold you to ransom if you try to leave in between.
In any case, looks like IT Company in question doesn't have ethical HR practices and it is better to tell your friend not to join.
Bond of Rs 2 lakhs in the agreement is unwarranted and will not stand in the court of law as there is a deemed employer-employee relationship.
This are tactics of late adopted by many IT companies due to large scale separations in IT industry.
S Nagasubramanian
9325006193
naga.subramanian@rsbglobal.com
From India, Pune
Please do not give original certificates and give only self-attested copies as they will hold you to ransom if you try to leave in between.
In any case, looks like IT Company in question doesn't have ethical HR practices and it is better to tell your friend not to join.
Bond of Rs 2 lakhs in the agreement is unwarranted and will not stand in the court of law as there is a deemed employer-employee relationship.
This are tactics of late adopted by many IT companies due to large scale separations in IT industry.
S Nagasubramanian
9325006193
naga.subramanian@rsbglobal.com
From India, Pune
""In any case, looks like IT Company in question doesn't have ethical HR practices and it is better to tell your friend not to join""
Some of the practises in IT and also other industries are not HR freindly anyway.
Look at this news item:, Indian IT companies among world's worst paymasters - The Times of India.
From India, Pune
Some of the practises in IT and also other industries are not HR freindly anyway.
Look at this news item:, Indian IT companies among world's worst paymasters - The Times of India.
From India, Pune
Hello Talent Gyaan,
I am not sure of your definition of "reputed IT Firm"--no reputed Company takes Originals.
Coming to the Bond, even though, like other members mentioned, any Service Bond NOT BACKED by specialized Training is illegal, I guess it has become a catch-22 scenario now in the IT industry.
If you go thru the postings in this very Forum, many employees try to take the First better Offer that comes his/her way even though they would have worked in their present Company for just a few months. So I guess that leaves the Companies to make their own set of Rules to protect their interests.
Also, I think this Company is better off than many as far as the cost of Bond-breaking goes--it's only 2 months salary vis-a-vis others where amounts run into 1-2 Lakhs.
Suggest look for other openings rather than getting into a situation where the Originals are with the Company giving scope for future problems.
@Nathrao--
W.r.t. your TOI Link about "Indian IT companies among world's worst paymasters - The Times of India"--
I think you have placed this news item in a wrong perspective.....in 3 ways.
The very fact that India is among the Global IT powers today is due to this very fact....low salaries. It's more of a business model of lower costs [which includes salaries] that catapulted Indian IT to where it is now. This aspect is more of a Supply/Demand issue than anything else. Similar would be the case of China in the Manufacturing sector.
There are many other countries [like Philippines, Indonesia, Vietnam, etc] waiting for Indian Salaries to shoot upwards....so that they can takeover from where India left.
From another perspective, everyone knows that the Average Salary Range of IT sector is much higher than any other sector in India.
From a III perspective, it's like comparing Apples to Oranges......Switzerland, which topped the List in Salary Survey is, incidentally, also among the highest cost-of-living List in the world.
One can't have it BOTH ways......
Rgds,
TS
From India, Hyderabad
I am not sure of your definition of "reputed IT Firm"--no reputed Company takes Originals.
Coming to the Bond, even though, like other members mentioned, any Service Bond NOT BACKED by specialized Training is illegal, I guess it has become a catch-22 scenario now in the IT industry.
If you go thru the postings in this very Forum, many employees try to take the First better Offer that comes his/her way even though they would have worked in their present Company for just a few months. So I guess that leaves the Companies to make their own set of Rules to protect their interests.
Also, I think this Company is better off than many as far as the cost of Bond-breaking goes--it's only 2 months salary vis-a-vis others where amounts run into 1-2 Lakhs.
Suggest look for other openings rather than getting into a situation where the Originals are with the Company giving scope for future problems.
@Nathrao--
W.r.t. your TOI Link about "Indian IT companies among world's worst paymasters - The Times of India"--
I think you have placed this news item in a wrong perspective.....in 3 ways.
The very fact that India is among the Global IT powers today is due to this very fact....low salaries. It's more of a business model of lower costs [which includes salaries] that catapulted Indian IT to where it is now. This aspect is more of a Supply/Demand issue than anything else. Similar would be the case of China in the Manufacturing sector.
There are many other countries [like Philippines, Indonesia, Vietnam, etc] waiting for Indian Salaries to shoot upwards....so that they can takeover from where India left.
From another perspective, everyone knows that the Average Salary Range of IT sector is much higher than any other sector in India.
From a III perspective, it's like comparing Apples to Oranges......Switzerland, which topped the List in Salary Survey is, incidentally, also among the highest cost-of-living List in the world.
One can't have it BOTH ways......
Rgds,
TS
From India, Hyderabad
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Bond of Employment.doc
Bond in employment.pdf