Hi, I am Siju Mathew, and I am not an HR professional. I am bringing a different dimension to this issue. It is a genuine query that I have come across with many people. To my knowledge and from discussions with various individuals, I have found that signing a bond itself is illegal. The company can never take you to labor court if you violate the contract that you signed as a bond. Secondly, if the company holds your rights citing the bond, then as a consumer and an employee, you have all the rights to take the company to court.
From India, Madras
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From India, Madras
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Whether the following is applicable upon the bond or not? Section 5 in The Bonded Labour System (Abolition) Act, 1976
From India, Chandigarh
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From India, Chandigarh
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Dear Garggirl,
After going through your concern for your friend, let me inform you that as per the provisions of the labor law, no company can forcefully retain any employee. However, the employer has the option to have a bond in place if they have invested in the employee for training or any other purpose.
You may have noticed that many companies have employees sign an agreement before joining for a maximum period of one year. If an employee wishes to resign after completing one year, they are required to give a two-month notice. If they choose to resign before that, they may have to pay a certain amount (usually 1 or 2 times the monthly basic pay) that the employer might have spent on sourcing the employee through a consultant. However, this is also limited to a maximum period of one year.
In your case, where the bond is signed for a period of three years and any breach of the contract requires the employee to pay 1 lakh, there needs to be more clarity on why the bond was set at this value.
If the bond was signed without any specific reason, such as specialized training provided by the employer, you have every right to seek legal advice.
It would be advisable to consult with someone well-versed in labor laws and legal aspects.
Regards.
From India, Hyderabad
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After going through your concern for your friend, let me inform you that as per the provisions of the labor law, no company can forcefully retain any employee. However, the employer has the option to have a bond in place if they have invested in the employee for training or any other purpose.
You may have noticed that many companies have employees sign an agreement before joining for a maximum period of one year. If an employee wishes to resign after completing one year, they are required to give a two-month notice. If they choose to resign before that, they may have to pay a certain amount (usually 1 or 2 times the monthly basic pay) that the employer might have spent on sourcing the employee through a consultant. However, this is also limited to a maximum period of one year.
In your case, where the bond is signed for a period of three years and any breach of the contract requires the employee to pay 1 lakh, there needs to be more clarity on why the bond was set at this value.
If the bond was signed without any specific reason, such as specialized training provided by the employer, you have every right to seek legal advice.
It would be advisable to consult with someone well-versed in labor laws and legal aspects.
Regards.
From India, Hyderabad
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Ask your friend to come to the office late daily, leave early, show low performance, shout in the office, and throw tantrums. Then, attribute this behavior to family or marriage pressure. HR will eventually relieve your friend, as if it were a James Bond scenario.
When HR discusses bonds and rules, we need to be clever and prompt them to break their own rules. Encourage your friend to behave in a way that prompts HR to ask for their resignation.
From India, Madras
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1When HR discusses bonds and rules, we need to be clever and prompt them to break their own rules. Encourage your friend to behave in a way that prompts HR to ask for their resignation.
From India, Madras
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Dear All Haryana Govt revise the Minnimum wage from 01.01.11 here is attachment for your refrance regd/naresh khola
From India, Delhi
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From India, Delhi
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The provisions of the Act apply to the labor force who are under an agreement to serve on account of some debt from a particular person. The forms of forced labor are: Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji, Sanjawat, Sewak, Sewakia, Seri, Vetti.
So, the service people do not come within the purview of the Bonded Labor Act. Of course, the Act needs to be amended to cover any type of bond.
From India, Delhi
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So, the service people do not come within the purview of the Bonded Labor Act. Of course, the Act needs to be amended to cover any type of bond.
From India, Delhi
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Though the reason cited by your friend is genuine, rules do not sometimes accept this excuse as she knew that she had signed the bond for 3 years at the time of recruitment. In my opinion, there are only two/three alternatives to this problem:
1) Give a representation to the company requesting them to waive off the penalty as she is forced to quit due to a genuine reason.
2) Somehow manage to pay the money.
3) Consult an advocate to find loopholes to come out of this problem.
4) Try with the company for a reduction in the penalty amount.
From India, Hyderabad
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1) Give a representation to the company requesting them to waive off the penalty as she is forced to quit due to a genuine reason.
2) Somehow manage to pay the money.
3) Consult an advocate to find loopholes to come out of this problem.
4) Try with the company for a reduction in the penalty amount.
From India, Hyderabad
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I am fully aggreed with KDCCORP. There is no any law to bond an employee by a company. Don’t afraid. Suresh Thakur
From India, Delhi
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From India, Delhi
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Dear Friend,
In order to combat attrition and attract talent, employers have been actively engaging with employees. It has become a common practice to have an agreement with employees stating that, for a specified period, such an agreement will not be constitutionally valid. This has been clarified multiple times by both the Supreme Court and the High Courts. Reference is made to a case wherein it was held that the freedom to change employment for the purpose of improving service conditions is a vital and important right of an employee that cannot be restricted or curtailed.
American Express Bank Ltd. vs. Ms. Priya Puri, 2006 LLR 682 (Del. HC)
Thanks & Regards,
Jayanta Basak
HR Professional
From India, Calcutta
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In order to combat attrition and attract talent, employers have been actively engaging with employees. It has become a common practice to have an agreement with employees stating that, for a specified period, such an agreement will not be constitutionally valid. This has been clarified multiple times by both the Supreme Court and the High Courts. Reference is made to a case wherein it was held that the freedom to change employment for the purpose of improving service conditions is a vital and important right of an employee that cannot be restricted or curtailed.
American Express Bank Ltd. vs. Ms. Priya Puri, 2006 LLR 682 (Del. HC)
Thanks & Regards,
Jayanta Basak
HR Professional
From India, Calcutta
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