Hi All,
I need some advise. I had signed a bond with my company for 1.5 years but had to leave the job before the end of the contract period.
I was with this company for 4 years before i left it due to certain reasons which are listed below:
a) No growth in 4 years which was very frustating despite the fact that i was the best performer.
b) Medical reasons.
I tried to resign but the company did not accept my resignation as the I had not served the complete bond period. After a few months of leaving the company i joined another company at a better position.
Now my previous company is asking me to give an affidavit stating that I am currently not working anywhere.
There were at least 15 more peopel who left the organisation without serving the bond period and no action was taken against them.
Please advise if I still have to give the affidavit to the company? Can they take nay legal action? The bond period is now over. Please help.
From India, Delhi
I need some advise. I had signed a bond with my company for 1.5 years but had to leave the job before the end of the contract period.
I was with this company for 4 years before i left it due to certain reasons which are listed below:
a) No growth in 4 years which was very frustating despite the fact that i was the best performer.
b) Medical reasons.
I tried to resign but the company did not accept my resignation as the I had not served the complete bond period. After a few months of leaving the company i joined another company at a better position.
Now my previous company is asking me to give an affidavit stating that I am currently not working anywhere.
There were at least 15 more peopel who left the organisation without serving the bond period and no action was taken against them.
Please advise if I still have to give the affidavit to the company? Can they take nay legal action? The bond period is now over. Please help.
From India, Delhi
Dear Arora,
Please find a similar question and answer that I found on www.vakilno1.com It may be of use to you:
[b]Question: I wish to know the consequences of breach of employment bond given by an employees: On the employee himself, On the company that employs him subsequently. If the bond states that the employees can be used for criminal breach of trust on breach of the bond, how enforceable is this clause?
A. As regard the breach of the employment bond given by an employee in this regard it is advised that if an employee has signed a bond after he get specialized training from the company then a civil case can be filed against him for recovery of the amount mentioned in the bond if there is any breach. As regard the company that employs him subsequently, there is no liability of the company, which employs him subsequently. Breach of bond is not criminal breach of trust it is of civil consequences and that also have to be proved in the Court of Law. In no manner it can be termed as criminal breach of trust.
From India, Hyderabad
3Please find a similar question and answer that I found on www.vakilno1.com It may be of use to you:
[b]Question: I wish to know the consequences of breach of employment bond given by an employees: On the employee himself, On the company that employs him subsequently. If the bond states that the employees can be used for criminal breach of trust on breach of the bond, how enforceable is this clause?
A. As regard the breach of the employment bond given by an employee in this regard it is advised that if an employee has signed a bond after he get specialized training from the company then a civil case can be filed against him for recovery of the amount mentioned in the bond if there is any breach. As regard the company that employs him subsequently, there is no liability of the company, which employs him subsequently. Breach of bond is not criminal breach of trust it is of civil consequences and that also have to be proved in the Court of Law. In no manner it can be termed as criminal breach of trust.
From India, Hyderabad
Dear arorad,
The language and clauses in the bond you signed are of consequence - i.e. what did they make you sign?
Normally, various court case laws have indicated that in most cases, Company has lost. Most exceptions are when the Company has 'specially' spend time and effort (money) on you (say, overseas travel, training, etc). In such cases, the Company has the right to claim the money back through a legal case.
By the parlance of justice, no company can make employees sign bonds of employment. The legal framework has endorsed that the relationship between an employee and employer is no longer a slave-master relationship. Those days are gone.
Companies who have fought legal cases know this but get bond signed to retain employees by indirect threatening. Most bonds are illegal. Even by case laws, Govt. and PSUs have also lost cases on this subject.
If it is a routine service bond, you need'nt worry, nothing will happen. But if they have spent money/special efforts on you in reference to any specific clause in the bond, they have the right to recover the money from you, legally.
Also, there is no criminal case/breach unless an employee has been framed in case of theft, violence or money fraud in most cases. A regular bond is admissible as a civil case.
Do not sign any affidavit at all. You are no longer with them and they hold no right to make you sign anywhere. With whatever information you have provided in your query, I advice that you refuse signing anywhere and keep silent.
Rahul
09968270580
From India, New Delhi
The language and clauses in the bond you signed are of consequence - i.e. what did they make you sign?
Normally, various court case laws have indicated that in most cases, Company has lost. Most exceptions are when the Company has 'specially' spend time and effort (money) on you (say, overseas travel, training, etc). In such cases, the Company has the right to claim the money back through a legal case.
By the parlance of justice, no company can make employees sign bonds of employment. The legal framework has endorsed that the relationship between an employee and employer is no longer a slave-master relationship. Those days are gone.
Companies who have fought legal cases know this but get bond signed to retain employees by indirect threatening. Most bonds are illegal. Even by case laws, Govt. and PSUs have also lost cases on this subject.
If it is a routine service bond, you need'nt worry, nothing will happen. But if they have spent money/special efforts on you in reference to any specific clause in the bond, they have the right to recover the money from you, legally.
Also, there is no criminal case/breach unless an employee has been framed in case of theft, violence or money fraud in most cases. A regular bond is admissible as a civil case.
Do not sign any affidavit at all. You are no longer with them and they hold no right to make you sign anywhere. With whatever information you have provided in your query, I advice that you refuse signing anywhere and keep silent.
Rahul
09968270580
From India, New Delhi
Dear Members,
I am really thankful to all the members who replied to my query.
Rahul, I agree with you that I should not sign/submit any legal document to the company as I am no longer under the bond period, however the trouble is that they are neither accepting my resignation nor terminating me.
They have waived off the bond for some of the people who travelled with me overseas and they have accepted the resignations of 10 more people who are now working in different companies. They also terminated a couple of people who were absconding. I am the only one they are harassing and asking for an affidavit to accept my resignation.
Keeping all this in mind, please suggest what stand can I take to protect myself.
Regards
From India, Delhi
I am really thankful to all the members who replied to my query.
Rahul, I agree with you that I should not sign/submit any legal document to the company as I am no longer under the bond period, however the trouble is that they are neither accepting my resignation nor terminating me.
They have waived off the bond for some of the people who travelled with me overseas and they have accepted the resignations of 10 more people who are now working in different companies. They also terminated a couple of people who were absconding. I am the only one they are harassing and asking for an affidavit to accept my resignation.
Keeping all this in mind, please suggest what stand can I take to protect myself.
Regards
From India, Delhi
You should send your resignation letter via registered AD post to the Company and keep the AD card and post office receipt as a proof of having sent the resignation to the Company.
No one can deny having received it and legally, this is sufficient to protect you as regards your resignation from the Company.
Also, why should they be harassing you whereas they have accepted others' resignations is not clear to me..
Rahul
From India, New Delhi
No one can deny having received it and legally, this is sufficient to protect you as regards your resignation from the Company.
Also, why should they be harassing you whereas they have accepted others' resignations is not clear to me..
Rahul
From India, New Delhi
Hi Rahul,
Thanks a lot for your advise. My cousin who works in the same company had signed my bond as a surety and probably thats why they are harassing me.
I also wanted to know if they can ask my cousin (surety) to pay the bond amount or can cause any trouble for him?
What stand can I take if they ask me to pay the bond amount?
Regards
From India, Delhi
Thanks a lot for your advise. My cousin who works in the same company had signed my bond as a surety and probably thats why they are harassing me.
I also wanted to know if they can ask my cousin (surety) to pay the bond amount or can cause any trouble for him?
What stand can I take if they ask me to pay the bond amount?
Regards
From India, Delhi
Your ex empoyer are not in a strong position legally.
dont give/ sign any statement.
Section 27 of Indian contract Act 1872 provides that aggrements restrining a person from exercising a lawful business, trade or profession are to that extent , VOID.
any clause which prohibits employees from working with competiotors after cessation of current employemnt has been struck down by Courts repeatedly.
restrictive clauses during the term of employment have been upheld in few cases.
From India, Delhi
dont give/ sign any statement.
Section 27 of Indian contract Act 1872 provides that aggrements restrining a person from exercising a lawful business, trade or profession are to that extent , VOID.
any clause which prohibits employees from working with competiotors after cessation of current employemnt has been struck down by Courts repeatedly.
restrictive clauses during the term of employment have been upheld in few cases.
From India, Delhi
Hi,
I would like to know if my previous company can ask my cousin, who signed the bond as a surety, to pay the bond amount as he works in the same company.
What should I do in case they send me any legal notice?
What should be my approach with the HR of the company on this issue?
Thanks
From India, Delhi
I would like to know if my previous company can ask my cousin, who signed the bond as a surety, to pay the bond amount as he works in the same company.
What should I do in case they send me any legal notice?
What should be my approach with the HR of the company on this issue?
Thanks
From India, Delhi
Hi arorad,
Yes, they can ask your cousin to cough up the bond amount since he stood surety. He can be harassed and his option is also to leave the Company.
As I had indicated, in case you have caused the Company to spend money and special efforts on you, they can ask you to pay up, legally.
But, on generic employment contract terms a 'service bond' is null and void under law. Companies have legally lost cases of 'employee bonds'.
This means that a bond that is meant to bind an employee to the job is illegal in nature. Law only recognizes the appointment letter that is fair and equitable on both sides.
I cannot exactly comment on your bond since I have not read its contents and purpose. But generally, I have advised.
Rahul
09968270580
From India, New Delhi
Yes, they can ask your cousin to cough up the bond amount since he stood surety. He can be harassed and his option is also to leave the Company.
As I had indicated, in case you have caused the Company to spend money and special efforts on you, they can ask you to pay up, legally.
But, on generic employment contract terms a 'service bond' is null and void under law. Companies have legally lost cases of 'employee bonds'.
This means that a bond that is meant to bind an employee to the job is illegal in nature. Law only recognizes the appointment letter that is fair and equitable on both sides.
I cannot exactly comment on your bond since I have not read its contents and purpose. But generally, I have advised.
Rahul
09968270580
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Service agreement.doc