Hi Guys,
I joined a company 2.5 months back as an HR Executive,I am afraid that Management will want me to sign Surety bond(3 yrs) after completion of probation period. I am continuously looking for a better opportunity since i am not satisfied with the company i'm working in. Now please help me deal with this issue.:confused:
From Pakistan, Rawalpindi
I joined a company 2.5 months back as an HR Executive,I am afraid that Management will want me to sign Surety bond(3 yrs) after completion of probation period. I am continuously looking for a better opportunity since i am not satisfied with the company i'm working in. Now please help me deal with this issue.:confused:
From Pakistan, Rawalpindi
Dear Friend,
Surety bond is not a legal compulsion, as any kind of bond is abondoned. If also After signing the same, you will not continue your job, then they can not take any kind of legal action.
Thanks
ranjit
From India, Delhi
3Surety bond is not a legal compulsion, as any kind of bond is abondoned. If also After signing the same, you will not continue your job, then they can not take any kind of legal action.
Thanks
ranjit
From India, Delhi
Let the probation period ends and papers relating to surety bond reach your table. Why should you worry till then?
Surety Bond signed by an employee reflects only one major clause of 'indemnity'. That is, if the company had incurred an amount by way of parting training to you, then that amount should be given back to the organisation while you leave before the stipulated period. In fact the period (bond period) means the period required for the employer to 'extract' the amount spent by him to train you. If you prove that the company had not incurred any special cost to train you, the bond will become unmaintainable. On the other hand, if the company had incurred expenditure on your training you are bound to give it back by serving with the company for the period stipulated or to refund the amount spent by the company in lumpsum when you leave before the stipulated date.
Please feel free that "bonded labour" is an offence and compelling an employee to remain with the employer will also be viewed as 'bonded labour'.
Regards,
Madhu.T.K
From India, Kannur
Surety Bond signed by an employee reflects only one major clause of 'indemnity'. That is, if the company had incurred an amount by way of parting training to you, then that amount should be given back to the organisation while you leave before the stipulated period. In fact the period (bond period) means the period required for the employer to 'extract' the amount spent by him to train you. If you prove that the company had not incurred any special cost to train you, the bond will become unmaintainable. On the other hand, if the company had incurred expenditure on your training you are bound to give it back by serving with the company for the period stipulated or to refund the amount spent by the company in lumpsum when you leave before the stipulated date.
Please feel free that "bonded labour" is an offence and compelling an employee to remain with the employer will also be viewed as 'bonded labour'.
Regards,
Madhu.T.K
From India, Kannur
Thanks for your response
Actually two of my colleagues will be have to sign Surety Bond within 2-3 days so for that purpose Surety Bond is in my hands before time. As far as my probation period is concerned, it will end by Nov 22nd. Now What is making me worried that i dont want to get into contract with this company for 3 years first of all. Secondly, the bond says if i leave before three years then i'll have to pay 1 lac(which is ridiculous) plus training cost Rs. 50,000.(now i dont understand what is that 1 lac for)?
I understand your point against training cost but what if i get some good opportunity then according to surety bond i cant leave until and unless i pay them money.To make things more complexed, I'll have to inform 3 months before resignation(why not 1 month:().
There is another clause in the bond that if i dont sign surety bond then my status will be converted to daily wages.(Should i go for it or should i negotiate over duration and surety)
Help please
From Pakistan, Rawalpindi
Actually two of my colleagues will be have to sign Surety Bond within 2-3 days so for that purpose Surety Bond is in my hands before time. As far as my probation period is concerned, it will end by Nov 22nd. Now What is making me worried that i dont want to get into contract with this company for 3 years first of all. Secondly, the bond says if i leave before three years then i'll have to pay 1 lac(which is ridiculous) plus training cost Rs. 50,000.(now i dont understand what is that 1 lac for)?
I understand your point against training cost but what if i get some good opportunity then according to surety bond i cant leave until and unless i pay them money.To make things more complexed, I'll have to inform 3 months before resignation(why not 1 month:().
There is another clause in the bond that if i dont sign surety bond then my status will be converted to daily wages.(Should i go for it or should i negotiate over duration and surety)
Help please
From Pakistan, Rawalpindi
As mentioned in my post there is nothing in a surety bond. If you are mentally strong to face it you can go for surety bond. But if you feel that you will get a better opportunity in near future and if you are not capable of facing bond formalities, you can opt out of it and continue till next opportunity as daily rated employee.
Daily wages doesnot mean that he/ she is not eligible for any statutory benefits or protection. Provisions of EPF/ ESI Acts, Maternity Benefit Act, Gratuity Act, Payment of Wages Act, Bonus Act, Industrial Disputes Act etc are applicable to all employees including daily rated employees. It is only a matter of mental satisfaction to say that I am 'regular', 'permanent' or 'confirmed' employee. A daily rated employee who has been in service for one year shall be terminated only after serving notice and paying compensation at par with any other 'regular' employee.
Regards,
Madhu.T.K
From India, Kannur
Daily wages doesnot mean that he/ she is not eligible for any statutory benefits or protection. Provisions of EPF/ ESI Acts, Maternity Benefit Act, Gratuity Act, Payment of Wages Act, Bonus Act, Industrial Disputes Act etc are applicable to all employees including daily rated employees. It is only a matter of mental satisfaction to say that I am 'regular', 'permanent' or 'confirmed' employee. A daily rated employee who has been in service for one year shall be terminated only after serving notice and paying compensation at par with any other 'regular' employee.
Regards,
Madhu.T.K
From India, Kannur
Dear Sana Nazir,
I will go with Madhu T.K. has explained the whole matter correctly and lawfully.
Moreover; It is nothing but a matter of satisfaction regular/confirmed/permanent.
If your daily wages are at par your existing wages with the same profie and if you are afraid of facing the bond fomalities then continue with as daily wages and explore new opportunity.
Actually these bond are not null and void, in these bonds you indemnify the employer that the company may recover the amount incurred on training etc. if one is not rendered the services for a specified period under the surety bond.
If you think can grab another opportunity in near future just go with daily wages status, If you can serve the company for a specified period and actually you will get the required training then surey bond is not a big deel.
Thanks
Mohd. Arif Khan
I will go with Madhu T.K. has explained the whole matter correctly and lawfully.
Moreover; It is nothing but a matter of satisfaction regular/confirmed/permanent.
If your daily wages are at par your existing wages with the same profie and if you are afraid of facing the bond fomalities then continue with as daily wages and explore new opportunity.
Actually these bond are not null and void, in these bonds you indemnify the employer that the company may recover the amount incurred on training etc. if one is not rendered the services for a specified period under the surety bond.
If you think can grab another opportunity in near future just go with daily wages status, If you can serve the company for a specified period and actually you will get the required training then surey bond is not a big deel.
Thanks
Mohd. Arif Khan
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