Can employee leave the job during probation period without any notice if he/she has signed bond for 1 year with company.
From India, New Delhi
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1From India, New Delhi
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No. Unless valid ground can be established, an employee cannot quit before 1 year
From India, Chennai
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From India, Chennai
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Hi Naveen,
As per my knowledge, the notice period needs to be served. What is the notice period mentioned, 1 month or more than that? The bond is of INR 50,000 and is against a 1-year service. Generally, if someone wishes to leave a company without serving the notice period (without a bond also), then he/she must show a valid reason (I mean such reasons due to which it is not possible at all to continue with service). Sometimes, in that case, the employee needs to buy the notice period from the company to avoid "Absconding," and this is the actual procedure as per LAW.
In your case, since you have signed a bond, the company can claim "Compensation" by legal means which they would suffer if you don't serve the notice period.
I would suggest, if your main objective is to leave:
1. Sit with HRD and have a negotiation.
2. State a valid reason for which you can't continue with the service.
3. Try to convince them to buy the notice period or pay INR 50,000 before returning.
4. An important point to consider is if anyone proves that he/she is medically unfit to continue with the service for a long period or the nature of the job is negatively impacting health, then on medical grounds, the company has to accept unconditional resignation (hardly matters if a bond is signed or not signed). No organization can force anyone to work and take risks with life, which can be considered as "provocation in death."
Thanks and Regards,
Sovik Bhattacharjee
MBA - HR & Finance
MD, S.S ENTERPRISE
From India, Mumbai
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As per my knowledge, the notice period needs to be served. What is the notice period mentioned, 1 month or more than that? The bond is of INR 50,000 and is against a 1-year service. Generally, if someone wishes to leave a company without serving the notice period (without a bond also), then he/she must show a valid reason (I mean such reasons due to which it is not possible at all to continue with service). Sometimes, in that case, the employee needs to buy the notice period from the company to avoid "Absconding," and this is the actual procedure as per LAW.
In your case, since you have signed a bond, the company can claim "Compensation" by legal means which they would suffer if you don't serve the notice period.
I would suggest, if your main objective is to leave:
1. Sit with HRD and have a negotiation.
2. State a valid reason for which you can't continue with the service.
3. Try to convince them to buy the notice period or pay INR 50,000 before returning.
4. An important point to consider is if anyone proves that he/she is medically unfit to continue with the service for a long period or the nature of the job is negatively impacting health, then on medical grounds, the company has to accept unconditional resignation (hardly matters if a bond is signed or not signed). No organization can force anyone to work and take risks with life, which can be considered as "provocation in death."
Thanks and Regards,
Sovik Bhattacharjee
MBA - HR & Finance
MD, S.S ENTERPRISE
From India, Mumbai
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Hi Sovik Bhattacharjee,
As mentioned, it is advisable for Naveen to try to buy out the notice period or pay INR 50,000 before returning from the HRD (Human Resource Department). This is because it hardly matters whether a bond is signed on stamp paper or the letterhead of the company; the value remains valid up to a certain extent under the law.
However, an alternative legal procedure exists as well. According to our Constitution, no one can be forced to work under a bonded labor system in India. In this case, you would also need to send a "Resignation Letter" through legal methods such as via postal services and then make the payment of INR 50,000 through a cheque or DD. This ensures there is hard evidence that you have paid the amount. Even under this scenario, the company cannot demand compensation exceeding INR 50,000 as they have already factored in this loss if you leave without serving the notice period within one year, hence the arrangement of such bonds.
From experience, the best tool in such situations is negotiation. Companies are aware that they cannot force an employee to work, and doing so would lead to decreased productivity and various associated issues like poor morale, grievances, and misbehavior. Consequently, they would not only face these challenges but may also lose more employees.
Thanks & Regards,
Sovik Bhattacharjee
MBA- HR & Finance
MD- S.S ENTERPRISE
From India, Mumbai
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As mentioned, it is advisable for Naveen to try to buy out the notice period or pay INR 50,000 before returning from the HRD (Human Resource Department). This is because it hardly matters whether a bond is signed on stamp paper or the letterhead of the company; the value remains valid up to a certain extent under the law.
However, an alternative legal procedure exists as well. According to our Constitution, no one can be forced to work under a bonded labor system in India. In this case, you would also need to send a "Resignation Letter" through legal methods such as via postal services and then make the payment of INR 50,000 through a cheque or DD. This ensures there is hard evidence that you have paid the amount. Even under this scenario, the company cannot demand compensation exceeding INR 50,000 as they have already factored in this loss if you leave without serving the notice period within one year, hence the arrangement of such bonds.
From experience, the best tool in such situations is negotiation. Companies are aware that they cannot force an employee to work, and doing so would lead to decreased productivity and various associated issues like poor morale, grievances, and misbehavior. Consequently, they would not only face these challenges but may also lose more employees.
Thanks & Regards,
Sovik Bhattacharjee
MBA- HR & Finance
MD- S.S ENTERPRISE
From India, Mumbai
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In such situations, you need to follow what is mentioned and agreed upon in the employment/appointment letter. If it is stated that you don't have to serve a notice period if you leave during the probation period, then you can proceed accordingly. Otherwise, you should adhere to whatever terms were agreed upon in the bond.
From India, Lucknow
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From India, Lucknow
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Hi Naveen,
There are two aspects to your question. One is leaving a job during probation, and the second is leaving the job before completion of the bond period of one year or payment of Rs. 50,000/- in lieu of the same.
Leaving during the probation period is governed by a condition in your appointment letter regarding Leaving/Termination of your service and the notice period required for the same. In your case, with a one-year bond, it has to be determined what this bond is against. For example, is it against the investment in your training, etc., done by the company? For an agreement to hold up in the court of law, the organization has to prove that they have spent an equal or greater amount on you (please don't consider salary in it as it is payment for the work you have done for the organization) and intend to recover the cost if you leave before the stipulated time.
If this is not the case, please proceed with resigning and leaving the organization as per the conditions of your appointment letter during the probation period. Ensure that the resignation is submitted legally, with proof of submission. However, if the organization has invested in you, it would be unethical, immoral, and unprofessional to leave them prematurely. If you still wish to leave, discuss with HR to reach the best resolution and depart amicably without causing legal issues in the future.
Best of luck.
Thanks and Regards
From Pakistan
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There are two aspects to your question. One is leaving a job during probation, and the second is leaving the job before completion of the bond period of one year or payment of Rs. 50,000/- in lieu of the same.
Leaving during the probation period is governed by a condition in your appointment letter regarding Leaving/Termination of your service and the notice period required for the same. In your case, with a one-year bond, it has to be determined what this bond is against. For example, is it against the investment in your training, etc., done by the company? For an agreement to hold up in the court of law, the organization has to prove that they have spent an equal or greater amount on you (please don't consider salary in it as it is payment for the work you have done for the organization) and intend to recover the cost if you leave before the stipulated time.
If this is not the case, please proceed with resigning and leaving the organization as per the conditions of your appointment letter during the probation period. Ensure that the resignation is submitted legally, with proof of submission. However, if the organization has invested in you, it would be unethical, immoral, and unprofessional to leave them prematurely. If you still wish to leave, discuss with HR to reach the best resolution and depart amicably without causing legal issues in the future.
Best of luck.
Thanks and Regards
From Pakistan
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W.R.T to Couvery's & LUCKYMAN 1000's comment, I would like to share a similar situation that I faced recently, dealing with a Civil Engineer. With him, I had a bond of 3 years & is of value INR 700,000, Notice Period: 3 months. Reason being that person used to have 25 years of experience & worked in companies like SIMPLEX, HCC, etc. Now, his compensation needs to be shared, else the situation can't be understood; his monthly salary was INR 98,000 pm. Though he was hired by one of my clients, the client took my opinion, the reason being we were supposed to close & complete the project within 6 months from LDE of that engineer (which would be a difficult task without his presence).
When I asked the GM of my client (I was dealing with him), who hired this person, his reply was Corporate HR Head. So, we decided to have a phone conference with him (Corporate HR Head). Now, the corporate HR head was not at all interested in speaking with me as his age was about 55 years & I am a guy of 26 years. Basically, it is my first high-value project (I belong to a business family), and prior to this, I had only IT/ITES experience & not in construction/Building material/Real Estate Industry. Finally, as per the order of the GM, he was forced to go for a teleconference.
When I asked him, what was the reason behind such a bond/agreement? His reply was 1. Retention- as senior engineers with such experience are hard to get. 2. Minimizing Risk associated with quick resignation.
I told him, is it practically possible to retain someone by a so-called employment bond? Because if a person decides to leave, we can't stop him as per LAW. If we try to do that, he will just go for a petition in Court & would say, I got a better offer, why should I miss it? Legally he would claim, Employment Bond is made to minimize Risk associated with business as there is a Cost Involved & business loss involved if he leaves suddenly. But, legally if an employment bond is made, Bond has a value associated. That value signifies "The Loss business is going to suffer due to his sudden leave/resignation within 3 years". This is true for all employment bonds. So, whatever happens, the company can't charge more than INR 700,000 or 3 months' salary of the notice period, whichever is maximum (in this case, it would be the bond value). So, if a person is ready to pay the Bond Value (Compensation), by what means are you going to stop him? Yes, you can go to court & sue him, harass him, but at the end, you need to face the anger of the magistrate because the person is ready to compensate you for your loss & you have made such an agreement calculating the loss for the time period of 3 years. Only a Government Agency can take action & compel to force an employee to work if there is an emergency affecting Public's essential requirement & national security.
Then the Corporate HR head said, this is not correct, in anger. I replied politely, you are absolutely correct but whenever there is a conflict between Morale & Law, we have to go by law. Else we would end up paying compensation. Secondly, I told him, if he does not want to work & doesn't want to pay, then also you can retain him, but what will be the use? He will not be satisfied & may have a grudge. He may never use his talent or potential to the maximum extent, which will result in poor performance & associated problems. What would you do then? It's very difficult to prove by law that a person is not giving his best intentionally. You can take measures, like cutting incentives, etc. But, the actual problem will never be solved. He can make delays in the project, & we have to be like a viewer.
Later, my client's Lawyers, rather legal firm, also confirmed the same. Post that, we went for a negotiation, I simply said to him, give us 1 month's time so that we can find someone of equal potential & in the meantime kindly hand over all project details to your immediate Junior, make him understand & share details with him on how to complete the project within the time. Later, on his LDE, that engineer thanked me as he resigned because his daughter is suffering from Blood Cancer & he needs to relocate. I only said, I understand your feeling as a father & would surely do business with you in the future. But, kindly share your phone number with us so that if we face any problem with the project, we can consult with you & it's a request. He agreed. And fortunately, this project is over & on Nov 27, I am moving to the North-east, just to close it officially.
I am not very good with figures, KPI, HR Policies, but I always had a passion to become an HR. Practically, I am fortunate as I got an opportunity to interact with some good HR Leaders of MNC's. But I have learned one lesson, in order to manage business successfully, we must understand the psychology of employees & consider the human factor with importance first, be it employees or dealing with clients or vendors. I can count stars in the sky & sands on earth, so I can get my work done from anyone with their free consent by understanding their psychology. This is business.
From India, Mumbai
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When I asked the GM of my client (I was dealing with him), who hired this person, his reply was Corporate HR Head. So, we decided to have a phone conference with him (Corporate HR Head). Now, the corporate HR head was not at all interested in speaking with me as his age was about 55 years & I am a guy of 26 years. Basically, it is my first high-value project (I belong to a business family), and prior to this, I had only IT/ITES experience & not in construction/Building material/Real Estate Industry. Finally, as per the order of the GM, he was forced to go for a teleconference.
When I asked him, what was the reason behind such a bond/agreement? His reply was 1. Retention- as senior engineers with such experience are hard to get. 2. Minimizing Risk associated with quick resignation.
I told him, is it practically possible to retain someone by a so-called employment bond? Because if a person decides to leave, we can't stop him as per LAW. If we try to do that, he will just go for a petition in Court & would say, I got a better offer, why should I miss it? Legally he would claim, Employment Bond is made to minimize Risk associated with business as there is a Cost Involved & business loss involved if he leaves suddenly. But, legally if an employment bond is made, Bond has a value associated. That value signifies "The Loss business is going to suffer due to his sudden leave/resignation within 3 years". This is true for all employment bonds. So, whatever happens, the company can't charge more than INR 700,000 or 3 months' salary of the notice period, whichever is maximum (in this case, it would be the bond value). So, if a person is ready to pay the Bond Value (Compensation), by what means are you going to stop him? Yes, you can go to court & sue him, harass him, but at the end, you need to face the anger of the magistrate because the person is ready to compensate you for your loss & you have made such an agreement calculating the loss for the time period of 3 years. Only a Government Agency can take action & compel to force an employee to work if there is an emergency affecting Public's essential requirement & national security.
Then the Corporate HR head said, this is not correct, in anger. I replied politely, you are absolutely correct but whenever there is a conflict between Morale & Law, we have to go by law. Else we would end up paying compensation. Secondly, I told him, if he does not want to work & doesn't want to pay, then also you can retain him, but what will be the use? He will not be satisfied & may have a grudge. He may never use his talent or potential to the maximum extent, which will result in poor performance & associated problems. What would you do then? It's very difficult to prove by law that a person is not giving his best intentionally. You can take measures, like cutting incentives, etc. But, the actual problem will never be solved. He can make delays in the project, & we have to be like a viewer.
Later, my client's Lawyers, rather legal firm, also confirmed the same. Post that, we went for a negotiation, I simply said to him, give us 1 month's time so that we can find someone of equal potential & in the meantime kindly hand over all project details to your immediate Junior, make him understand & share details with him on how to complete the project within the time. Later, on his LDE, that engineer thanked me as he resigned because his daughter is suffering from Blood Cancer & he needs to relocate. I only said, I understand your feeling as a father & would surely do business with you in the future. But, kindly share your phone number with us so that if we face any problem with the project, we can consult with you & it's a request. He agreed. And fortunately, this project is over & on Nov 27, I am moving to the North-east, just to close it officially.
I am not very good with figures, KPI, HR Policies, but I always had a passion to become an HR. Practically, I am fortunate as I got an opportunity to interact with some good HR Leaders of MNC's. But I have learned one lesson, in order to manage business successfully, we must understand the psychology of employees & consider the human factor with importance first, be it employees or dealing with clients or vendors. I can count stars in the sky & sands on earth, so I can get my work done from anyone with their free consent by understanding their psychology. This is business.
From India, Mumbai
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