Hi all, I'm working for an IT firm. At the time of joining, my organization asked me to sign a bond for 2 years with a penalty of Rs 1,00,000 for breaching the bond (cost incurred in training). In the bond, they mentioned providing classroom training, on-the-job training, and international training, but there is no mention of reducing the penalty amount as the service duration in the bond progresses.
After a year, I resigned from the company. The company did not provide any classroom training to me, as stated in the bond.
In this scenario, would I be liable to pay Rs 1,00,000 as compensation to the organization? Can I request them to provide the exact amount spent on my training, and do they have the right to refuse? Does the organization have the power to withhold an experience letter if I do not pay Rs 1,00,000? If they refuse, what are my rights? If I challenge them in court for refusing to pay Rs 1 lakh, how long will the case take, considering its impact on my future job prospects and career?
Thank you.
From India, Mumbai
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After a year, I resigned from the company. The company did not provide any classroom training to me, as stated in the bond.
In this scenario, would I be liable to pay Rs 1,00,000 as compensation to the organization? Can I request them to provide the exact amount spent on my training, and do they have the right to refuse? Does the organization have the power to withhold an experience letter if I do not pay Rs 1,00,000? If they refuse, what are my rights? If I challenge them in court for refusing to pay Rs 1 lakh, how long will the case take, considering its impact on my future job prospects and career?
Thank you.
From India, Mumbai
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Hi,
Any employee is typically governed by the terms and conditions of their appointment letter or any subsequent contracts made thereafter with the employer, such as training bonds, etc. In IT companies, such contracts are common since a lot of resources are invested in employees.
In your case, it seems:
1) You have breached the contract, and your legal standing is weak. You are obligated to compensate for their losses.
2) You cannot ask for a prorated amount from them since the penalty is applicable from the first day of the breach as a whole. However, negotiation is an option.
3) The company will likely pressure you for the experience letter, and you have limited rights except to seek recourse through the courts, where again your legal position may be weak.
4) Breach of contract cases is civil in nature and can extend over many days. Therefore, carefully consider before proceeding with litigation.
Please let me know if you need further assistance.
From India, Mumbai
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7Any employee is typically governed by the terms and conditions of their appointment letter or any subsequent contracts made thereafter with the employer, such as training bonds, etc. In IT companies, such contracts are common since a lot of resources are invested in employees.
In your case, it seems:
1) You have breached the contract, and your legal standing is weak. You are obligated to compensate for their losses.
2) You cannot ask for a prorated amount from them since the penalty is applicable from the first day of the breach as a whole. However, negotiation is an option.
3) The company will likely pressure you for the experience letter, and you have limited rights except to seek recourse through the courts, where again your legal position may be weak.
4) Breach of contract cases is civil in nature and can extend over many days. Therefore, carefully consider before proceeding with litigation.
Please let me know if you need further assistance.
From India, Mumbai
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Certainly! Here is the corrected text with proper spelling, grammar, and paragraph formatting:
"Can I ask them to provide the exact amount incurred on me as part of training, and do they have the right to refuse to provide it? The cost of training can be quantified, and if they did not provide classroom training, what training did they give you? What international training was done? You can discuss these issues with them, but is it worthwhile? No one can predict how many days or months the case will go on in courts. Consult a local lawyer, show him all the papers, and then decide. You have breached the contract; negotiate with the company and pay the minimal amount possible, quantified for the value of training actually given to you, and carry on with your career."
I have corrected the spelling and grammar errors, and also ensured proper paragraph formatting. If you have any more text to review, feel free to share!
From India, Pune
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"Can I ask them to provide the exact amount incurred on me as part of training, and do they have the right to refuse to provide it? The cost of training can be quantified, and if they did not provide classroom training, what training did they give you? What international training was done? You can discuss these issues with them, but is it worthwhile? No one can predict how many days or months the case will go on in courts. Consult a local lawyer, show him all the papers, and then decide. You have breached the contract; negotiate with the company and pay the minimal amount possible, quantified for the value of training actually given to you, and carry on with your career."
I have corrected the spelling and grammar errors, and also ensured proper paragraph formatting. If you have any more text to review, feel free to share!
From India, Pune
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Bonded labor in India has been outlawed. However, employees are liable to reimburse training expenses. The employer must submit bills, etc., to quantify the loss. This means your training should have actually caused them a loss of Rs. 1 lakh when you resigned; otherwise, you're not liable to pay.
The legal route of obtaining an experience letter is not advisable as it is time-consuming and may prove expensive.
Check out this article to know more: [Employment Bonds - Do they really work? | Bond Contracts](http://quikchex.in/employment-bonds-contracts-do-they-work/)
From India, Mumbai
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The legal route of obtaining an experience letter is not advisable as it is time-consuming and may prove expensive.
Check out this article to know more: [Employment Bonds - Do they really work? | Bond Contracts](http://quikchex.in/employment-bonds-contracts-do-they-work/)
From India, Mumbai
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The employment bond is not valid. They have derived commercial value out of your efforts. There are lots of case studies that have been posted in cite HR. Please search for it, and you will get insight. You don't have to pay a penny.
From United+States, San+Francisco
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From United+States, San+Francisco
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The employer cannot unilaterally enforce the bond; this could only be through the due process of law. If the appointment letter had provided for arbitration, there is an easy route for the employer. Otherwise, they will have to approach the Civil Court for a decree.
They cannot deny the experience letter if you take a firm stand.
From India, Kochi
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They cannot deny the experience letter if you take a firm stand.
From India, Kochi
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Don't pay anything. Get some employment proof (letter) from the company that can show you are employed there. Your offer letter + this document + resignation acceptance should be sufficient to prove to your next employer that you were employed for approximately what duration and the reason for your resignation.
From India, Bangalore
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From India, Bangalore
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Hello,
Thank you for your replies. I just wanted to add one more point that was raised by the HR regarding training. The focus was on the fact that they provided "on-the-job training." The senior person they assigned to me at the client site was giving me on-the-job training, and his daily salary is also included as part of the training bond amount.
From India, Mumbai
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Thank you for your replies. I just wanted to add one more point that was raised by the HR regarding training. The focus was on the fact that they provided "on-the-job training." The senior person they assigned to me at the client site was giving me on-the-job training, and his daily salary is also included as part of the training bond amount.
From India, Mumbai
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You have to respond back stating that the senior person did not train you but was only delegating work to you. Such delegation cannot be termed as training. Upon his delegation of work, you have slogged hard, resulting in commercial gains for the company. Hence, delegation cannot be termed as training. If the senior person has claimed to have trained you, then such claim is false, and you can ask the HR guy to take action against the senior person for falsely claiming that he has trained you. Tell him such claims will fail the test of law and bring a bad name to the company if you decide to take it up legally.
There is also an interesting case wherein a known person decided to go to the Human Rights body for depriving him of the right to leave and work anywhere he desires in the guise of a bond by a small IT company in Bangalore. The State Human Rights Commission summoned the CEO and the HR person. The company panicked and resolved the whole issue within a week, releasing the employee and reporting to the Human Rights Commission that the problem is resolved and it was only a misunderstanding, and the employee has been relieved. This was a new strategy that this known person used, as his sister is a lawyer and she believed it was a human right violation to enforce bondage in the guise of a bond. You may want to explore this avenue as it gives speedy results.
From United+States, San+Francisco
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There is also an interesting case wherein a known person decided to go to the Human Rights body for depriving him of the right to leave and work anywhere he desires in the guise of a bond by a small IT company in Bangalore. The State Human Rights Commission summoned the CEO and the HR person. The company panicked and resolved the whole issue within a week, releasing the employee and reporting to the Human Rights Commission that the problem is resolved and it was only a misunderstanding, and the employee has been relieved. This was a new strategy that this known person used, as his sister is a lawyer and she believed it was a human right violation to enforce bondage in the guise of a bond. You may want to explore this avenue as it gives speedy results.
From United+States, San+Francisco
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Thank you for clearing the definition of training.
Recently, my organization has asked me to leave the job with half-day prior notice, and they wanted to settle things offline. I would like to know how this will affect if I leave without closing the agreement (without having any formal commitment from the organization on the bond amount).
From India, Mumbai
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Recently, my organization has asked me to leave the job with half-day prior notice, and they wanted to settle things offline. I would like to know how this will affect if I leave without closing the agreement (without having any formal commitment from the organization on the bond amount).
From India, Mumbai
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Bond of Employment.doc
Bond in employment.pdf