Generally, service bonds are illegal in India as they are said to be one-sided contracts. The Supreme Court has stated that by entering into a contract of employment, a person does not sign a bond of slavery, and a permanent employee cannot be deprived of his right to resign.
However, if the company has spent money grooming the employee, which is not usual training, and the employee has been asked to sign a bond for such grooming, then the company may initiate legal proceedings for breach of the bond.
Regards,
Rijuta Misra
Legal Executive
From India, Rajsamand
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However, if the company has spent money grooming the employee, which is not usual training, and the employee has been asked to sign a bond for such grooming, then the company may initiate legal proceedings for breach of the bond.
Regards,
Rijuta Misra
Legal Executive
From India, Rajsamand
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Dear Naveendran,
This is the answer for which I have been searching on many forums. I, too, said the same to a couple of colleagues and friends. Some of them argued, "If it is so, why are many organizations taking bonds, including large organizations?" I quoted the same section of the Bonded Labour Act. Still, they denied my point. Your comment boosted my point.
Thanks,
Sankar Alla
From India, Hyderabad
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1This is the answer for which I have been searching on many forums. I, too, said the same to a couple of colleagues and friends. Some of them argued, "If it is so, why are many organizations taking bonds, including large organizations?" I quoted the same section of the Bonded Labour Act. Still, they denied my point. Your comment boosted my point.
Thanks,
Sankar Alla
From India, Hyderabad
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I fully endorse the opinion of kdccorp but how this bond system got this umbrella for MNCs I do not know.
From India, Tirupati
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From India, Tirupati
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It is surprising to hear that the girl has been asked to leave the job during the bond period by her in-laws who should understand the heavy penalty to be paid. If they still wish that their daughter-in-law should leave the job, then they should pay the penalty.
From India, Hyderabad
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From India, Hyderabad
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Hi Team,
As appropriately commented by Modi Ashok, it depends on the terms laid down in the bond and the substance of the case (the grounds created for the case by the Company). For example, if the bond specifies a commitment for a defined period in exchange for the training provided, the Company has the upper hand.
Please feel free to reach out to me for any further clarifications.
Regards,
Satheesh Thalapalli
M: +91-98660-17111
From India, Madras
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As appropriately commented by Modi Ashok, it depends on the terms laid down in the bond and the substance of the case (the grounds created for the case by the Company). For example, if the bond specifies a commitment for a defined period in exchange for the training provided, the Company has the upper hand.
Please feel free to reach out to me for any further clarifications.
Regards,
Satheesh Thalapalli
M: +91-98660-17111
From India, Madras
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Send a registered AD letter to the company citing the reasons why you cannot continue the job for the sake of your marriage. Also, know that there is no bonded labor in India. Otherwise, you can always provide some medical reasons for leaving the job.
From India, Ahmadabad
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From India, Ahmadabad
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There are two sides to the issue:
1) The company, which has spent time, money, energy, and efforts on this person, has secured a contract to protect their interest. Whether legal or illegal, standing the test of law, etc., is secondary. Let's, for a minute, put ourselves in that position and imagine what our response would be. In all fairness, the opportunity would have gone to another person, wherein that person and the company would have benefited if your friend, in the first place, had thought of these things.
2) Speaking for your friend, yes, it is not entirely her fault that this situation has come about. Her intention at the time of hiring was genuine but has now changed. Possible options could be: discuss with the company HR to 1) take a break now and join after maybe 6-12 months; maybe things would have changed by then. 2) Explore work-from-home options for the same company. 3) Take a break and pursue higher studies with an undertaking to work for the same company later in a different job/location. 4) Work on convincing your spouse to see the bright side, especially since she is a career woman.
If none of the above is workable, negotiate for a reduction in the bond (some %), agree on an EMI payment mode spread over a period of time, which may be beneficial for all concerned.
From India, Madras
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1) The company, which has spent time, money, energy, and efforts on this person, has secured a contract to protect their interest. Whether legal or illegal, standing the test of law, etc., is secondary. Let's, for a minute, put ourselves in that position and imagine what our response would be. In all fairness, the opportunity would have gone to another person, wherein that person and the company would have benefited if your friend, in the first place, had thought of these things.
2) Speaking for your friend, yes, it is not entirely her fault that this situation has come about. Her intention at the time of hiring was genuine but has now changed. Possible options could be: discuss with the company HR to 1) take a break now and join after maybe 6-12 months; maybe things would have changed by then. 2) Explore work-from-home options for the same company. 3) Take a break and pursue higher studies with an undertaking to work for the same company later in a different job/location. 4) Work on convincing your spouse to see the bright side, especially since she is a career woman.
If none of the above is workable, negotiate for a reduction in the bond (some %), agree on an EMI payment mode spread over a period of time, which may be beneficial for all concerned.
From India, Madras
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