Hi All ,
I am new to this forum.
One of my friend is working in an IT company.He signed a bond of amount Rs 2 lac on a 100 Rs stamp paper along with the relatives sign over the bond for guarantee for 2 years. The bond is one sided .Means only he has to pay if he leave the company .
Now he is not getting that much salary as per the Market standard and he is also made to work daily for 12-13 hrs and even on saturday ,sundays and holidays.
If my friend resign from the job without paying the bond amount ,what are the legal action company can take against him or vice versa.Please help me in this regards .
Thanks in advance
From India, Mumbai
I am new to this forum.
One of my friend is working in an IT company.He signed a bond of amount Rs 2 lac on a 100 Rs stamp paper along with the relatives sign over the bond for guarantee for 2 years. The bond is one sided .Means only he has to pay if he leave the company .
Now he is not getting that much salary as per the Market standard and he is also made to work daily for 12-13 hrs and even on saturday ,sundays and holidays.
If my friend resign from the job without paying the bond amount ,what are the legal action company can take against him or vice versa.Please help me in this regards .
Thanks in advance
From India, Mumbai
Dear Friend,
It has become the practice of the Employers to make the candidates sign such kind of bonds to blackmail them. It is also true that such kind of contracts signed under duress, and coersion are not binding.
Employers may file FIR and Civil Case but the same if handled properly have no relevance.
Generally, such kind of Agreements are having Arbitration clause and same supposed to be attended by the candidate to set aside the Agreement and can even be set aside by appealing before Civil Courts.
Regards
From India, Vadodara
21It has become the practice of the Employers to make the candidates sign such kind of bonds to blackmail them. It is also true that such kind of contracts signed under duress, and coersion are not binding.
Employers may file FIR and Civil Case but the same if handled properly have no relevance.
Generally, such kind of Agreements are having Arbitration clause and same supposed to be attended by the candidate to set aside the Agreement and can even be set aside by appealing before Civil Courts.
Regards
From India, Vadodara
Hi,
These bonds are there for a reason- most freshers require some training before they can show results, and no company would recruit freshers if they couldn't hold on to them. Since your friend has signed the bond, he is ethically and legally obliged to follow its terms. He can pay up the amount and resign, if he thinks that his salary is far below the market rate. If he cannot afford to do that, 2 yrs is not such a long time, and he'll make much better money if he resigns after 2 yrs.
The employer can file a civil complaint, and reference checks for the rest of his career (sometimes even visa processing) will show this.
From India, Madras
These bonds are there for a reason- most freshers require some training before they can show results, and no company would recruit freshers if they couldn't hold on to them. Since your friend has signed the bond, he is ethically and legally obliged to follow its terms. He can pay up the amount and resign, if he thinks that his salary is far below the market rate. If he cannot afford to do that, 2 yrs is not such a long time, and he'll make much better money if he resigns after 2 yrs.
The employer can file a civil complaint, and reference checks for the rest of his career (sometimes even visa processing) will show this.
From India, Madras
Salam,
I don’t think Co. can do any thing because all contracts should be based on Mutual Consensus bases & should be beneficial for both the party, employees can claim that when he singed the contract he was in need & had no other option,
Other than that usually Co. don’t put claim on employees because it cost the Co. more than what they claim from the employees. These comments were given by our Labor Law Professor & I have seen many employees breaking the Bond & employer doing nothing about it.
From Pakistan, Karachi
I don’t think Co. can do any thing because all contracts should be based on Mutual Consensus bases & should be beneficial for both the party, employees can claim that when he singed the contract he was in need & had no other option,
Other than that usually Co. don’t put claim on employees because it cost the Co. more than what they claim from the employees. These comments were given by our Labor Law Professor & I have seen many employees breaking the Bond & employer doing nothing about it.
From Pakistan, Karachi
Bonds have got no legal value, this is only to put a mental pressure on employees for making them stay in the company. The only problem is that they create problem in issuing necessary certificates which are required to be submitted to new organisation.
With ragards,
Nitin
From India, Pune
With ragards,
Nitin
From India, Pune
Hi Sree thanks for your comment ,
Even if he works for the above company for two years ,he will not be able to save 1 lacs ..his compensation is far below the market standards as I mentioned ..So it will not be a loss for him if he stay for 2 years at the same compensation as he has joined recently and if even after that he will resign he will not get more than 4k per annum at that time .
And one more thing he is asked to work for 12-13 hours daily + weekends as i mentioned . Please can u suggest any alternate option
From India, Mumbai
Even if he works for the above company for two years ,he will not be able to save 1 lacs ..his compensation is far below the market standards as I mentioned ..So it will not be a loss for him if he stay for 2 years at the same compensation as he has joined recently and if even after that he will resign he will not get more than 4k per annum at that time .
And one more thing he is asked to work for 12-13 hours daily + weekends as i mentioned . Please can u suggest any alternate option
From India, Mumbai
Dear Amrish,
If your friend has signed a bond with total understanding, then he has to abide by that in letter and spirit or else its a breach the trust. Just imagine a company takes you on a contract with "x" salary and when you join they pay you less that agreed. What would be your reaction?
If your friend has the feeling that he is not doing good professionally then abide by what he has signed in the bond. Even if it is onesided (don't know why did he ever signed that ), you always have an option to discuss the same with the company and negotiate for a lower amount. If you have done a mistake you will have to bear the brunt.
You have also not disclosed why a 2 lac bond was signed (quite an amount). Is the company providing him On JOB training?. Clarify pls.
And if salary is the only criteria to resign, ask your friend to re-think on that. Money can be earned anytime and anywhere, what you will not earn is "the experience and skills" which you have to horn yourself.
On legal ground, your friend is calling for trouble if he breaks the bond.
For additonal hours, your friend has all right to ask the company to compensate him. Ask your friend to visit nearest Labor Office and complaint about the company for action.
Regards
Ukmitra
From Saudi Arabia, Riyadh
If your friend has signed a bond with total understanding, then he has to abide by that in letter and spirit or else its a breach the trust. Just imagine a company takes you on a contract with "x" salary and when you join they pay you less that agreed. What would be your reaction?
If your friend has the feeling that he is not doing good professionally then abide by what he has signed in the bond. Even if it is onesided (don't know why did he ever signed that ), you always have an option to discuss the same with the company and negotiate for a lower amount. If you have done a mistake you will have to bear the brunt.
You have also not disclosed why a 2 lac bond was signed (quite an amount). Is the company providing him On JOB training?. Clarify pls.
And if salary is the only criteria to resign, ask your friend to re-think on that. Money can be earned anytime and anywhere, what you will not earn is "the experience and skills" which you have to horn yourself.
On legal ground, your friend is calling for trouble if he breaks the bond.
For additonal hours, your friend has all right to ask the company to compensate him. Ask your friend to visit nearest Labor Office and complaint about the company for action.
Regards
Ukmitra
From Saudi Arabia, Riyadh
Hi Ukmitra, They have provided 4 months training before giving them project . In the bond amount they have mentioned that training amount is 2lac .. Anyways thanx for ur reply
From India, Mumbai
From India, Mumbai
Hi Amrish,
You're taking a lot of trouble for your friend. :-)
I don't know what training the company has provided, but I assume it must be some skill that's valuable in the market. Also, working long hours, even on weekends, is not unknown in the IT industry. It happens to everyone at the beginning of their career. While salary is important, let him concentrate on learning as much as possible, building contacts, and gaining a feel for hard work. Counsel your friend that he will gain valuable experience by working in his current organization for the bond period, rather than jumping simply because things are tough. What will he say when an interviewer asks him why he wants to leave?
Also, I get reference checks everyday for employees who have left the company. It is never very pleasant for those who have skipped a bond.
If he is determined to quit no matter what the cost, he could try negotiating with the company. But he must be good at negotiation. Ultimately, if he can prove his capabilities in the present organization, things will be much smoother for him.
From India, Madras
You're taking a lot of trouble for your friend. :-)
I don't know what training the company has provided, but I assume it must be some skill that's valuable in the market. Also, working long hours, even on weekends, is not unknown in the IT industry. It happens to everyone at the beginning of their career. While salary is important, let him concentrate on learning as much as possible, building contacts, and gaining a feel for hard work. Counsel your friend that he will gain valuable experience by working in his current organization for the bond period, rather than jumping simply because things are tough. What will he say when an interviewer asks him why he wants to leave?
Also, I get reference checks everyday for employees who have left the company. It is never very pleasant for those who have skipped a bond.
If he is determined to quit no matter what the cost, he could try negotiating with the company. But he must be good at negotiation. Ultimately, if he can prove his capabilities in the present organization, things will be much smoother for him.
From India, Madras
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