The Scenario is a below :
1. When I joined the organization, they got a BOND SIGNED by us for 2 years, during which if we leave we need to pay them 1 lakh Rs. as a penalty.
2. Now I have got a job at another organization that is offering me better opportunities.
3. My current organization is threatening me to pay the bond. I HAVE READ ALL POSTS HERE ON THE SITE AND THEY STATE that THE BOND IS NOT VALID AS PER THE INDIAN LAWS. So basically I won't be paying them. Is that fine? Can I say this to HR?
4. Also I need to join the organization in a short time which req. the "Experience Letter & Relieving Letter"
5. Can the current organization stop my Exp Certi and the Relieving letter? (It seems they will threaten for this too) . If yes, what should I say? Please tell me the solution of the same.
6. The notice period is of 2 months, out of which I would be able to serve only 1 month, due to joining at the other organization.
From India, New Delhi
71. When I joined the organization, they got a BOND SIGNED by us for 2 years, during which if we leave we need to pay them 1 lakh Rs. as a penalty.
2. Now I have got a job at another organization that is offering me better opportunities.
3. My current organization is threatening me to pay the bond. I HAVE READ ALL POSTS HERE ON THE SITE AND THEY STATE that THE BOND IS NOT VALID AS PER THE INDIAN LAWS. So basically I won't be paying them. Is that fine? Can I say this to HR?
4. Also I need to join the organization in a short time which req. the "Experience Letter & Relieving Letter"
5. Can the current organization stop my Exp Certi and the Relieving letter? (It seems they will threaten for this too) . If yes, what should I say? Please tell me the solution of the same.
6. The notice period is of 2 months, out of which I would be able to serve only 1 month, due to joining at the other organization.
From India, New Delhi
let me get it straight .................you do not want to honour the bond you signed........ you do not want to pay the damages...... you do not want to serve notice period .....and you do not want to pay the notice period...... but you on the other hand need experience and reliving certificate..........
Seems like a win win situation ( You did not mention why you sign a bond = must be some training)
One thing like to add ........ if you come out of the situation with out sweat (tension /legal fight) or blood (money)..... then I should say we are living in the best possible world, and employer is some one, who is meant to be kick around.
any way my advice is :-
Please negotiate with your present employer to waive the bond and also negotiate with your future employer to extend the date of joining so that you may hand over properly.
From India, Gurgaon
Seems like a win win situation ( You did not mention why you sign a bond = must be some training)
One thing like to add ........ if you come out of the situation with out sweat (tension /legal fight) or blood (money)..... then I should say we are living in the best possible world, and employer is some one, who is meant to be kick around.
any way my advice is :-
Please negotiate with your present employer to waive the bond and also negotiate with your future employer to extend the date of joining so that you may hand over properly.
From India, Gurgaon
Hello Rupendra Chahar
Well 1st of all thanks for replying and the answers to your queries/comments:
1. The bond was stated for any training if provided. I was given just the general technical training along with the rest 200 jonnies. No other special training.
2. Many have left the organization, who were even given rest paid trainings apart from the general ones, which were paid. They dint pay even 1rs as the bond.
3. I am ready to serve a 1 month notice period out of 2 and ready to pay the salary to the company for the 2nd month.
4. And I guess, the exp and reliving certi are an obligation to the company (this is what I am asking) , not something really huge that I am expecting from the company.
5. I have been literally on bench for past 1 year and no significant work I have done, so this employer has to be really kicked around as you mentioned.
From India, New Delhi
Well 1st of all thanks for replying and the answers to your queries/comments:
1. The bond was stated for any training if provided. I was given just the general technical training along with the rest 200 jonnies. No other special training.
2. Many have left the organization, who were even given rest paid trainings apart from the general ones, which were paid. They dint pay even 1rs as the bond.
3. I am ready to serve a 1 month notice period out of 2 and ready to pay the salary to the company for the 2nd month.
4. And I guess, the exp and reliving certi are an obligation to the company (this is what I am asking) , not something really huge that I am expecting from the company.
5. I have been literally on bench for past 1 year and no significant work I have done, so this employer has to be really kicked around as you mentioned.
From India, New Delhi
Dear Varun (apologies if I am wrong),
You completely misunderstood the kick around thing. Annoyingly but if I be the HRM of your organisation I will support employer.
now take one by one
1) A training is a training whatever the content is you sign a bond, and is as good as you appointment letter.
2) If many have left with out paying, this firm is on a verge of closure I guess.
3) What your present situation is up to you but the firm is a deciding factor and may decide as per discretion, believe me the are also responsible for many's bread and butter.
4) What is they issue you a absconding letter through registered post.
5) How come you now at the time of leaving realise that the money you got is for sitting idle ?
Hope as stated in earlier post you will try to resolve thing in best interest of your current employer
From India, Gurgaon
You completely misunderstood the kick around thing. Annoyingly but if I be the HRM of your organisation I will support employer.
now take one by one
1) A training is a training whatever the content is you sign a bond, and is as good as you appointment letter.
2) If many have left with out paying, this firm is on a verge of closure I guess.
3) What your present situation is up to you but the firm is a deciding factor and may decide as per discretion, believe me the are also responsible for many's bread and butter.
4) What is they issue you a absconding letter through registered post.
5) How come you now at the time of leaving realise that the money you got is for sitting idle ?
Hope as stated in earlier post you will try to resolve thing in best interest of your current employer
From India, Gurgaon
Dear Varun
Let be clear and straight that you can't leave the present organisation before the period as per the bond or need pay the amount mentioned in the bond.
They can even file or sue against you as they have proof signed and agreed to the terms and conditions of working.
Once you pay , you will receive all the letters such experience , relieving letter.
For Example - you got job in WIPRO and signed bond for 2 year and after 3month of joining you got offer from Infosys or Viseversa and do you expect to be relieved easily .....
Just thing before you take an action... It's all about career and future. Money can be earned in year also...
" To earn a name will take years but to ruin will a second"
So will advise please go as the bond signed by you.
From United Kingdom, London
Let be clear and straight that you can't leave the present organisation before the period as per the bond or need pay the amount mentioned in the bond.
They can even file or sue against you as they have proof signed and agreed to the terms and conditions of working.
Once you pay , you will receive all the letters such experience , relieving letter.
For Example - you got job in WIPRO and signed bond for 2 year and after 3month of joining you got offer from Infosys or Viseversa and do you expect to be relieved easily .....
Just thing before you take an action... It's all about career and future. Money can be earned in year also...
" To earn a name will take years but to ruin will a second"
So will advise please go as the bond signed by you.
From United Kingdom, London
To both the respected people who commented above :
Please explain me as to why should I pay the bond as said by you, if I go by the points below :
As per Indian Laws:
The validity/enforceability of the employment bond can be challenged on the ground that it restrains the lawful exercise of trade profession or trade or business. As per section 27 of the Contract Act, 1872, any agreement in restraint of trade or profession is void. Therefore, any terms and conditions of the agreement which directly or indirectly either compels the employee to serve the employer or restrict them from joining competitor or other employer is not valid under the law.
The employee, by signing a contract of employment, does not sign a bond of slavery and, therefore, the employee always has the right to resign the employment even if he has agreed to serve the employer for specific time period.
In India Bond is illegal as follows:
As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that's amounting to the violation of the rights mentioned under Article 19.
-------------------------------------------------------------------------------------------------------------------
And also the 5th point that you said, Money for sitting idle ! Is that my fault that I was idle ? I should have not taken the salary because they gave me no work ? More over I was looking for better opportunities, and when I found one, I am shifting. Whats my fault in that ?
From India, New Delhi
Please explain me as to why should I pay the bond as said by you, if I go by the points below :
As per Indian Laws:
The validity/enforceability of the employment bond can be challenged on the ground that it restrains the lawful exercise of trade profession or trade or business. As per section 27 of the Contract Act, 1872, any agreement in restraint of trade or profession is void. Therefore, any terms and conditions of the agreement which directly or indirectly either compels the employee to serve the employer or restrict them from joining competitor or other employer is not valid under the law.
The employee, by signing a contract of employment, does not sign a bond of slavery and, therefore, the employee always has the right to resign the employment even if he has agreed to serve the employer for specific time period.
In India Bond is illegal as follows:
As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that's amounting to the violation of the rights mentioned under Article 19.
-------------------------------------------------------------------------------------------------------------------
And also the 5th point that you said, Money for sitting idle ! Is that my fault that I was idle ? I should have not taken the salary because they gave me no work ? More over I was looking for better opportunities, and when I found one, I am shifting. Whats my fault in that ?
From India, New Delhi
Dear Varun,
Forget about point no 5, you raised it I asked, forget it.
I am failed to understnad why you are so disturbe in this issue, as you mention "many have left the job job and did not pay 1 Rupee".
Well for the legal part:-
In both the legal point as taken from net are final.
If you read carefully, you will get your answer.
signing a bond and a bonded labour is different, either way no one can foce a person to work(that is slavery 100%)
Now you got your answer "pay the bond and you are free to go". or fight a leagal bettle till the end of the world.
The point is you signed a bond, not to get a job but to get an add-on (training) where there was no compultion to avail the training, or loosing job.
If your future employer is ready to accept you with out releving / experience certificate, good for you.
What if they wrote your employer about the dues ?
See my point is you are not wriding the footer:- discuss with your HRM and sort out the issue, belive me no one want to steel your apportunity.
From India, Gurgaon
Forget about point no 5, you raised it I asked, forget it.
I am failed to understnad why you are so disturbe in this issue, as you mention "many have left the job job and did not pay 1 Rupee".
Well for the legal part:-
In both the legal point as taken from net are final.
If you read carefully, you will get your answer.
signing a bond and a bonded labour is different, either way no one can foce a person to work(that is slavery 100%)
Now you got your answer "pay the bond and you are free to go". or fight a leagal bettle till the end of the world.
The point is you signed a bond, not to get a job but to get an add-on (training) where there was no compultion to avail the training, or loosing job.
If your future employer is ready to accept you with out releving / experience certificate, good for you.
What if they wrote your employer about the dues ?
See my point is you are not wriding the footer:- discuss with your HRM and sort out the issue, belive me no one want to steel your apportunity.
From India, Gurgaon
Thanks a Lot Rupendra Chahar !
Well I am worried regarding the bond because :
1. When i said to the HR that others have left and you dint ask for bond they said " Its totally the business unit head decision who to take the bond from and who not, and this time there is no waiver at all". Does this make sense ? to me it doesnt, is it not partiality ? How does it work out. I am totally unware of this, thus asking. Can their mould their rules and regulations like this ?
2. Yes, there was compulstion for signing the bond other wise no offer letter was given. They got it signed on the 1st day of joining.
---------------------------------------------
One new point I forgot the mention is, the bond was signed between me and the ABC orgnization . Which is now acquired by XYZ organization. We heard that at XYZ organization the bonds are not valid. So does these bond hold any more ? There was also news inside the company that the bonds have been waived off due to the aquistion. (Officially HR's dont release such stuff. It was an internal news, HR's have been heard quoting this)
My bond was signed with ABC orgnization and the name has also been changed completely. Does this give me any benefit ?
I am really sorry I know this is too much of a mess. Would be great if you can help around.
From India, New Delhi
Well I am worried regarding the bond because :
1. When i said to the HR that others have left and you dint ask for bond they said " Its totally the business unit head decision who to take the bond from and who not, and this time there is no waiver at all". Does this make sense ? to me it doesnt, is it not partiality ? How does it work out. I am totally unware of this, thus asking. Can their mould their rules and regulations like this ?
2. Yes, there was compulstion for signing the bond other wise no offer letter was given. They got it signed on the 1st day of joining.
---------------------------------------------
One new point I forgot the mention is, the bond was signed between me and the ABC orgnization . Which is now acquired by XYZ organization. We heard that at XYZ organization the bonds are not valid. So does these bond hold any more ? There was also news inside the company that the bonds have been waived off due to the aquistion. (Officially HR's dont release such stuff. It was an internal news, HR's have been heard quoting this)
My bond was signed with ABC orgnization and the name has also been changed completely. Does this give me any benefit ?
I am really sorry I know this is too much of a mess. Would be great if you can help around.
From India, New Delhi
Dear Varun,
The waiver and add on benifits are the sole discretion of the employer, and are subjective to case to case basis.
If I sign a contract with reliance comm and that firm now is reliance info, my bond is still valid. See my point is the firm can not run away from liability by changing name same way its debtors.
Sorry but both points did not work in your favour, as I am telling you from day one that need to be negotiated with present HRM (but getting some thing may cost. i.e. two month notice insted of one).But since you have raise "many have left the organisation without paying 1 rupee" HRM must have pissed off , and believe me he will transfer the patato to your departmental head with steam and butter.
But there is a scope:-
Now as now you have stated that the BOND was signed at the time of offer, it itself become a criteria of selection. if after joining you came to know about such binding any court can not enforce such Bond. If I simplify for you .......... an offer is an offer as good as sale of catelague( with * condition apply) once you join a firm based on offer letter that is acceptance of offer letter and joining itself means, contract has began. Later appointment letter is made to document the whole activity, i.e. formal contract. If after joining the bond is given it is useless consult any advocate. But how you will prove it ???
Rupendra Chahar
9555528042
From India, Gurgaon
The waiver and add on benifits are the sole discretion of the employer, and are subjective to case to case basis.
If I sign a contract with reliance comm and that firm now is reliance info, my bond is still valid. See my point is the firm can not run away from liability by changing name same way its debtors.
Sorry but both points did not work in your favour, as I am telling you from day one that need to be negotiated with present HRM (but getting some thing may cost. i.e. two month notice insted of one).But since you have raise "many have left the organisation without paying 1 rupee" HRM must have pissed off , and believe me he will transfer the patato to your departmental head with steam and butter.
But there is a scope:-
Now as now you have stated that the BOND was signed at the time of offer, it itself become a criteria of selection. if after joining you came to know about such binding any court can not enforce such Bond. If I simplify for you .......... an offer is an offer as good as sale of catelague( with * condition apply) once you join a firm based on offer letter that is acceptance of offer letter and joining itself means, contract has began. Later appointment letter is made to document the whole activity, i.e. formal contract. If after joining the bond is given it is useless consult any advocate. But how you will prove it ???
Rupendra Chahar
9555528042
From India, Gurgaon
Ok, so it some how seems that I can pay the bond and get the release faster or keep fighting with them and even put my other joining at stake ! Right ? This is how I can sumarrize what you said :)
Ok so the next question I have in mind, do these guys also negotiate on the bond amount also ? (To be honest I am not in mood to pay at all, like I told others lets etc. But I dont wanna mess up and loose out the other job too)
The current HRM also knows that I can easily run away. (Again to be honest, I dont really care about the legal suit against me or something, I can very well say that no training was provided which is worth 1 lakh and also my complete year was wasted as no work was given)
So all in all , do they negotiate on the bond amount ?
I am ok with paying somewhat and get a smooth exit ! Money I can earn again, I just dont want to listen to their stupid senseless talks !
From India, New Delhi
Ok so the next question I have in mind, do these guys also negotiate on the bond amount also ? (To be honest I am not in mood to pay at all, like I told others lets etc. But I dont wanna mess up and loose out the other job too)
The current HRM also knows that I can easily run away. (Again to be honest, I dont really care about the legal suit against me or something, I can very well say that no training was provided which is worth 1 lakh and also my complete year was wasted as no work was given)
So all in all , do they negotiate on the bond amount ?
I am ok with paying somewhat and get a smooth exit ! Money I can earn again, I just dont want to listen to their stupid senseless talks !
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.
Resignation cum relieving letter.doc