Dear All!!
One of my friend working in an IT company, recently he had appeared in a interview in a new company.
He selected in the interview but he asked to sign the BOND for a period of 1.5 yrs.,
according to that bond, if he leaves the job before 1.5 yrs he will has to pay the 1.5 lacs rupees.
The package is good, he don't want to loose the opportunity.
If he leaves the job before the said period , would he be legally bounded to pay the money to the company?
Please suggest me.
Fahim Khan
From India, Delhi
7One of my friend working in an IT company, recently he had appeared in a interview in a new company.
He selected in the interview but he asked to sign the BOND for a period of 1.5 yrs.,
according to that bond, if he leaves the job before 1.5 yrs he will has to pay the 1.5 lacs rupees.
The package is good, he don't want to loose the opportunity.
If he leaves the job before the said period , would he be legally bounded to pay the money to the company?
Please suggest me.
Fahim Khan
From India, Delhi
Bonds, binding employees to an employer for a period of time, are not legal in India. So most of the companies do not call them bonds. Agreements, on the other hand, are legal and binding on two or more parties who sign it. Because of this reason, most of the companies make the employees sign an agreement to serve them for a period of time. And to reinforce the legality of the document, the agreement will normally say that the employee will be imparted some form of training during the tenure of the employment, towards which the company will be spending some amount (the amount will normally be specified), and because of this, the employee agrees to serve the company for a specified period of time post this training etc.
In the past, courts are known to have held that bonds in any form are illegal. They have also held agreements that do not specify the cost of training, and the period required for the company to realise this cost to be invalid as well.
Notwithstanding all the above, the courts invariably favour the employees in an employer-employee tussle. However, the employers, with their money power and muscle power, may be able to harass an employee who violates the terms of an agreement to some extent.
Let your friend carefully examine the condition because of which the agreement is being insisted upon. (If it is because of foreign assignment or training abroad, he/she can perhaps afford to sign it, and pay Rs. 1.5 lakhs even if he/she quits the job thereafter). Many companies actually make the new employees sign the agreement just for deterrent value and do not pursue violations very seriously.
From India, Mumbai
In the past, courts are known to have held that bonds in any form are illegal. They have also held agreements that do not specify the cost of training, and the period required for the company to realise this cost to be invalid as well.
Notwithstanding all the above, the courts invariably favour the employees in an employer-employee tussle. However, the employers, with their money power and muscle power, may be able to harass an employee who violates the terms of an agreement to some extent.
Let your friend carefully examine the condition because of which the agreement is being insisted upon. (If it is because of foreign assignment or training abroad, he/she can perhaps afford to sign it, and pay Rs. 1.5 lakhs even if he/she quits the job thereafter). Many companies actually make the new employees sign the agreement just for deterrent value and do not pursue violations very seriously.
From India, Mumbai
be careful, go through the company’s background properly, ask to existing employees and finally see all the conditions of the agreement carefully.
From India, Delhi
From India, Delhi
hI i recently received a notice for having broken a bond which I signed on a rs 20 stamp paper for overseas training which bound me tothe company for 18 months after training..i had a lot of personal problems and tried working it out with the comapny and it didnt work out ... subsequently i left resigning through e-mail which they did not accept and after some months sent me a termination notice for absoconding from work.. i had no choice given my circumstances.. this bond now asks me to pay the amt of 2.5 lacs.. i have other friends/colleagues who left teh comapny for better opportunities breaking the bond and have asked me to ignore it.. I do not agree.. could you suggest me what i should do.. also i need a good advocates name and contact whomi can contact for advise.. i have to reply this before 22 sept.. so could any one please help me.. or should i speak to the advocate who sent me the notice first... plseas advice....
sarita
From India, Mumbai
sarita
From India, Mumbai
Dear Fahim,
As told by Mr. Raj, for any agreement to br legally viable htrre has to be binding from bothe sides. If the agreements states binding condition from employer's sidealso then this agreement is legally valid in courts.
Although in absence of employer's binding condition makinn it invalid , as mentioned employer's can use this to harras employees.
Thanx,
Preeti
From India, Pune
As told by Mr. Raj, for any agreement to br legally viable htrre has to be binding from bothe sides. If the agreements states binding condition from employer's sidealso then this agreement is legally valid in courts.
Although in absence of employer's binding condition makinn it invalid , as mentioned employer's can use this to harras employees.
Thanx,
Preeti
From India, Pune
Hi..... to all HR guys...
Which company is deducting security money from employee in every month salary there no bond is stand. If employee is quit the company, company will be forfieted the security money from employee account and reamining amount will be born by the company....
From India, New Delhi
Which company is deducting security money from employee in every month salary there no bond is stand. If employee is quit the company, company will be forfieted the security money from employee account and reamining amount will be born by the company....
From India, New Delhi
Singing a Bond may not be a bad Idea if you are looking for a stable job with good opportunity. Bond is basically signed when the company itself is strong enough to provide you with work as well as salary long enough for the bond period itself. In current stiuation when there are many job cutting going on specifically in IT field, a bond may be a sort of security and stablilty offered by the company.
The company sometime may ask you an amount payable if and only if you leave the job before the expiry of the bond period as it may show your irresponsibility towards your current employer.
So if you want a stable job in current enviornment, its good to sign a bond,
else if you are prepared for a risk stay out of it
From India, Thana
The company sometime may ask you an amount payable if and only if you leave the job before the expiry of the bond period as it may show your irresponsibility towards your current employer.
So if you want a stable job in current enviornment, its good to sign a bond,
else if you are prepared for a risk stay out of it
From India, Thana
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Bond letter.doc