Please help me... I signed a bond and agreement on the company's letterhead, which was NOT STAMPED, NOT NOTARIZED.
Unclear Interview Process
The issue is that the process offered to me during the interview was unclear. The interviewer mentioned the client but did not specify the actual tasks I would be performing. I inquired about the role and was assured it would involve AR and Financials, but in reality, I was only tasked with Reconciliation. This discrepancy indicates that incorrect information and false promises were made. Throughout my tenure, I repeatedly sought clarification from my lead and colleagues, but they also seemed unaware of the work involved.
Assigned Responsibilities
Despite my experience, I was assigned the responsibilities of a fresher. According to the contract, I had the right to leave the company during the probation period, yet no details were provided regarding my role post-confirmation.
Decision to Leave and Legal Concerns
The misleading information and lack of a proper training schedule during the probation period led me to make this difficult decision. Now, I have received a notice from a law firm representing the company. I am seeking clarity on the legality of such a bond.
From India, Ahmedabad
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1Unclear Interview Process
The issue is that the process offered to me during the interview was unclear. The interviewer mentioned the client but did not specify the actual tasks I would be performing. I inquired about the role and was assured it would involve AR and Financials, but in reality, I was only tasked with Reconciliation. This discrepancy indicates that incorrect information and false promises were made. Throughout my tenure, I repeatedly sought clarification from my lead and colleagues, but they also seemed unaware of the work involved.
Assigned Responsibilities
Despite my experience, I was assigned the responsibilities of a fresher. According to the contract, I had the right to leave the company during the probation period, yet no details were provided regarding my role post-confirmation.
Decision to Leave and Legal Concerns
The misleading information and lack of a proper training schedule during the probation period led me to make this difficult decision. Now, I have received a notice from a law firm representing the company. I am seeking clarity on the legality of such a bond.
From India, Ahmedabad
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You just ignore the notice. No employer can compel an employee work with him under a bond.
From India, Kannur
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From India, Kannur
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Hi, you may find it unusual to receive two different suggestions for the same issue, but this is quite common when addressing legal matters in public forums.
If I were in your position, since this is a legal notice sent through a law firm, I would not ignore it outright (it is not prudent also). Instead, I would respond, clearly stating my stance.
In cases where such bonds involve monetary consideration, it is advisable to return the amount (if applicable in your case) and politely decline the demands outlined in the legal notice. If the employer proceeds to file a case in court, you can contest it and resolve the matter legally as you have a strong case. This approach is both practical and prudent.
That said, as Mr. Madhu mentioned, legally, no employer can compel an employee to remain in employment using a bond. Such practices often lack enforceability unless supported by valid consideration and reasonable terms.
I hope this helps guide your next steps.
From India, Bangalore
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If I were in your position, since this is a legal notice sent through a law firm, I would not ignore it outright (it is not prudent also). Instead, I would respond, clearly stating my stance.
In cases where such bonds involve monetary consideration, it is advisable to return the amount (if applicable in your case) and politely decline the demands outlined in the legal notice. If the employer proceeds to file a case in court, you can contest it and resolve the matter legally as you have a strong case. This approach is both practical and prudent.
That said, as Mr. Madhu mentioned, legally, no employer can compel an employee to remain in employment using a bond. Such practices often lack enforceability unless supported by valid consideration and reasonable terms.
I hope this helps guide your next steps.
From India, Bangalore
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(Fact Checked)-Correct advice! Employers cannot enforce bonds that lack valid consideration or reasonable terms. Always consult with a legal professional in such matters. Appreciate your input! (1 Acknowledge point)
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Madhu.T.K
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Hi Srinivas, thank you for your time and advice.
I am responding based on my lawyer's guidance. I was employed with the company for three months, including a one-month probation period. Despite having four years of experience, I was assigned tasks at a fresher level, which adversely affected my career and resume. When I raised this issue, I did not receive a satisfactory response. As a result, I decided to leave the company after just three months. Had I been provided with the correct information about my responsibilities, I would have likely left during the probation period.
According to the indemnity bond, I am required to serve a two-year commitment after completing the probation period. If I fail to do so, I must provide a three-month notice period along with a payment equivalent to three months' salary.
However, I would like to clarify if a PDF letter on company letterhead without a stamp, franking, or notary is considered a legally binding document.
From India, Ahmedabad
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I am responding based on my lawyer's guidance. I was employed with the company for three months, including a one-month probation period. Despite having four years of experience, I was assigned tasks at a fresher level, which adversely affected my career and resume. When I raised this issue, I did not receive a satisfactory response. As a result, I decided to leave the company after just three months. Had I been provided with the correct information about my responsibilities, I would have likely left during the probation period.
According to the indemnity bond, I am required to serve a two-year commitment after completing the probation period. If I fail to do so, I must provide a three-month notice period along with a payment equivalent to three months' salary.
However, I would like to clarify if a PDF letter on company letterhead without a stamp, franking, or notary is considered a legally binding document.
From India, Ahmedabad
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(Fact Checked)-While I can't provide legal advice, it's generally true that an unstamped, unnotarized document can still be legally binding. However, your situation may vary, so consider seeking legal counsel. (1 Acknowledge point)
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Legality of Employment Bonds
Bonds are legal only if the employing organization has spent money on organizing training to enhance employability. If no training was provided where a trainer or outside agency was paid a fee for training, then the bond has no legal sanctity.
From India, Delhi
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Bonds are legal only if the employing organization has spent money on organizing training to enhance employability. If no training was provided where a trainer or outside agency was paid a fee for training, then the bond has no legal sanctity.
From India, Delhi
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Yes, a PDF letter on company letterhead can be legally binding if you have affixed your signature to it as acceptance.
From India, Bangalore
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From India, Bangalore
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(Fact Checked)-You're absolutely right that a letter on company letterhead with a signature can be legally binding. However, the enforceability of the bond depends on the terms and any potential misrepresentation. It’s best to consult a legal professional. (1 Acknowledge point)
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Other things aside (the bond is probably a violation of contract law section 27), let me clarify your last line.
Notarization has no impact on legality and validity. It only confirms that the document is a true copy of the original document. That is all. There is no legal impact of having or not having it.
Franking/Stamping
Franking (stamping) is required for a legal document. However, the absence of it does not make the document invalid. Only when presented as evidence in court, the party needs to pay 10 times the stamp duty. Since the stamp duty is only ₹500 or ₹1000, the penalty is of little value to a company claiming far more from you.
Understanding PDF Documents
Lastly, what exactly is a PDF? It is a copy of the original document in a non-alterable (or alter-evident) format. If you signed the document, then the PDF will contain your signature. You cannot physically sign a PDF as it is a digital document unless you added a digital signature to it.
Hope this clarifies the matter.
On the validity of the bond, there have been many discussions already on it. Do a search in the box above and review what was discussed.
From India, Mumbai
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Notarization has no impact on legality and validity. It only confirms that the document is a true copy of the original document. That is all. There is no legal impact of having or not having it.
Franking/Stamping
Franking (stamping) is required for a legal document. However, the absence of it does not make the document invalid. Only when presented as evidence in court, the party needs to pay 10 times the stamp duty. Since the stamp duty is only ₹500 or ₹1000, the penalty is of little value to a company claiming far more from you.
Understanding PDF Documents
Lastly, what exactly is a PDF? It is a copy of the original document in a non-alterable (or alter-evident) format. If you signed the document, then the PDF will contain your signature. You cannot physically sign a PDF as it is a digital document unless you added a digital signature to it.
Hope this clarifies the matter.
On the validity of the bond, there have been many discussions already on it. Do a search in the box above and review what was discussed.
From India, Mumbai
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Hello, I agree with Mr. Srinivas Ji. If a candidate signs a bond of service, then this document is legally enforceable on the executor and the sureties, if any, whether or not it has been notarized or executed on a judicial stamp paper, which is an ideal condition for obtaining a bond from an incumbent candidate.
It is better to serve the notice period and deposit an amount equivalent to three months' notice to avoid legal complications and hindrance in employment with another employer.
The rest you may act according to your sweet will and advice from your legal advisor.
AK Jain
Retired Manager HR
Coal India Ltd.
From India, New+Delhi
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It is better to serve the notice period and deposit an amount equivalent to three months' notice to avoid legal complications and hindrance in employment with another employer.
The rest you may act according to your sweet will and advice from your legal advisor.
AK Jain
Retired Manager HR
Coal India Ltd.
From India, New+Delhi
Acknowledge(0)Amend(1)CiteHR.AI
(Fact Checked)-Great advice, Mr. Jain. A bond of service, even without notarization or stamp, can indeed be legally binding. However, it's also important to consider possible misrepresentation or breach of implied contract terms. Always good to consult with a legal advisor. (1 Acknowledge point)
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf
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Thank you Madhu Sir