I am working with an MNC. I want to leave the company because I aim to pursue higher studies abroad. I have already resigned but am seeking an immediate release with a buyout option. Unfortunately, my HR is unwilling to accommodate this request.
The notice period is 90 days, and I feel pressured to continue working in the organization. I am questioning why the agreement seems one-sided. While it mentions that a buyout is a possibility, the company reserves the right to decide whether to grant this option.
What steps can I take in this situation?
From India, Jalandhar
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The notice period is 90 days, and I feel pressured to continue working in the organization. I am questioning why the agreement seems one-sided. While it mentions that a buyout is a possibility, the company reserves the right to decide whether to grant this option.
What steps can I take in this situation?
From India, Jalandhar
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If you say the agreement is one-sided, why did you sign it in the first place?
If you fail to read and understand what you are signing up for, and without thinking of the consequences later if you change your mind, then be it on your own head.
I do not understand this bonding system you have in India. To my way of thinking, it is totally wrong. However, having read so many posts like yours on CiteHR over the years, I do see why employers put these conditions in place. It is very costly to hire an employee, and if they are just going to come and go as they please with no regard for the employer, then they will fight back.
We have had an extraordinary amount of posts on this subject in recent months. Why does no one here learn from this? The bottom line is that you cannot just dump your employer on a whim to go elsewhere. If they play hardball, it is your own fault, and you just need to suck it up and deal with it.
From Australia, Melbourne
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746If you fail to read and understand what you are signing up for, and without thinking of the consequences later if you change your mind, then be it on your own head.
I do not understand this bonding system you have in India. To my way of thinking, it is totally wrong. However, having read so many posts like yours on CiteHR over the years, I do see why employers put these conditions in place. It is very costly to hire an employee, and if they are just going to come and go as they please with no regard for the employer, then they will fight back.
We have had an extraordinary amount of posts on this subject in recent months. Why does no one here learn from this? The bottom line is that you cannot just dump your employer on a whim to go elsewhere. If they play hardball, it is your own fault, and you just need to suck it up and deal with it.
From Australia, Melbourne
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I concur with the observations of Aussie John.
A prospective employee signs the documents of employment like the offer letter, appointment letter, etc., with his eyes and mind open before accepting the offer. He cannot go back later according to his convenience.
If we analyze the posts with complaints about the notice period, most of them relate to job hopping only. Of course, an individual has the freedom to switch jobs for better opportunities. But he should take note of the notice period of his present job and accept the new offer to avoid unnecessary problems during the transition. Particularly, in the case of resigning to pursue higher education, such as the present one, there is no need to be uncertain as the timing for the start of the academic year and the notice period is already known.
To my knowledge, in India, there is no statutory provision for the notice period concerning resignations; it is governed solely by the terms of the employment contract. Therefore, there is no point in complaining later about alleged disparities in the terms of the same subject matter. Sometimes, organizational interests can outweigh those of an exiting employee.
Under these circumstances, if the actual reason for resignation is higher studies abroad, the employee can approach the HOD/CEO and persuasively request acceptance of a buy-out option as a special case.
From India, Salem
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A prospective employee signs the documents of employment like the offer letter, appointment letter, etc., with his eyes and mind open before accepting the offer. He cannot go back later according to his convenience.
If we analyze the posts with complaints about the notice period, most of them relate to job hopping only. Of course, an individual has the freedom to switch jobs for better opportunities. But he should take note of the notice period of his present job and accept the new offer to avoid unnecessary problems during the transition. Particularly, in the case of resigning to pursue higher education, such as the present one, there is no need to be uncertain as the timing for the start of the academic year and the notice period is already known.
To my knowledge, in India, there is no statutory provision for the notice period concerning resignations; it is governed solely by the terms of the employment contract. Therefore, there is no point in complaining later about alleged disparities in the terms of the same subject matter. Sometimes, organizational interests can outweigh those of an exiting employee.
Under these circumstances, if the actual reason for resignation is higher studies abroad, the employee can approach the HOD/CEO and persuasively request acceptance of a buy-out option as a special case.
From India, Salem
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John,
In India, the system is actually pretty good, clear, and fair. A service bond is basically made when the company provides you with training, invests money in you, and expects you to commit to a specific work period to make it worthwhile. A service bond is not effective if the company didn't spend money on you. In fact, courts have denied it in cases of on-the-job training without formal teaching or when it was conducted for free by existing employees of the company. However, once the bond is for training provided or skill enhancement, then you are obligated to follow it.
The issue of bond-breaking is so prevalent that banks and insurance companies have begun requiring candidates to undergo training at specific centers at their own expense before joining the company. They do this to ensure that the banks do not incur training costs only to have the individual leave shortly after, claiming they do not wish to work. (I have a client who has secured a training contract worth 5 crores a year and is now establishing training centers nationwide to fulfill it.)
This particular discussion is not about bonds but rather the standard notice period in the country. The original poster (OP) has agreed to a 3-month notice period in the employment contract but now wishes to leave without completing it. Personally, I question the veracity of this claim, as anyone going abroad for further studies would typically know in advance when to resign. Most colleges would likely accommodate starting a semester late if necessary.
Some individuals post such queries essentially seeking validation for leaving without notice. No response seems to satisfy their expectations.
From India, Mumbai
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In India, the system is actually pretty good, clear, and fair. A service bond is basically made when the company provides you with training, invests money in you, and expects you to commit to a specific work period to make it worthwhile. A service bond is not effective if the company didn't spend money on you. In fact, courts have denied it in cases of on-the-job training without formal teaching or when it was conducted for free by existing employees of the company. However, once the bond is for training provided or skill enhancement, then you are obligated to follow it.
The issue of bond-breaking is so prevalent that banks and insurance companies have begun requiring candidates to undergo training at specific centers at their own expense before joining the company. They do this to ensure that the banks do not incur training costs only to have the individual leave shortly after, claiming they do not wish to work. (I have a client who has secured a training contract worth 5 crores a year and is now establishing training centers nationwide to fulfill it.)
This particular discussion is not about bonds but rather the standard notice period in the country. The original poster (OP) has agreed to a 3-month notice period in the employment contract but now wishes to leave without completing it. Personally, I question the veracity of this claim, as anyone going abroad for further studies would typically know in advance when to resign. Most colleges would likely accommodate starting a semester late if necessary.
Some individuals post such queries essentially seeking validation for leaving without notice. No response seems to satisfy their expectations.
From India, Mumbai
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As pointed out, in India, a bond is valid only under certain conditions and cannot be used to treat employees as bonded workers. One-sided clauses that grant employers the power to veto the "buyout" clause will not stand the test of the law. However, in the exuberance of landing a well-paying job, one must not sign the employment contract blindly. Invalid terms and conditions alone cannot be enforced.
Then again, do employees have the time, money, and patience to challenge the invalid terms and conditions? Hence, it is prudent and pertinent to read and understand the implications of all clauses in the appointment letter.
Col. Suresh Rathi
From India, Delhi
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Then again, do employees have the time, money, and patience to challenge the invalid terms and conditions? Hence, it is prudent and pertinent to read and understand the implications of all clauses in the appointment letter.
Col. Suresh Rathi
From India, Delhi
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Already, other colleagues have written on the subject. I wish to say to the questioner that it is not bondage. Just think and see the picture from another angle also. When you are working for someone, they rely on you whether they give you training or not. Even if you are trained, it takes a minimum of 2 months to understand the organization's working ways. Let us think vice versa; if the company asks you that from now on, you are not required in the company, what will be your position when you have to support your family on the same salary? It is also difficult for employees to find a new job. If the company, without giving you any notice or notice period wages, what will be your position? Then you will blame the company that the businessmen are ruthless. It is the responsibility of both the employee and employer to give proper notice to each other. It cannot be one-sided.
India is a free country, and you are free to sign the contract and have the right to refuse.
From India, New Delhi
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India is a free country, and you are free to sign the contract and have the right to refuse.
From India, New Delhi
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Release letter.doc