employment bond _ very urgent
Querist :
Anonymous
(Querist) 17 February 2011
This query is : Resolved
PLZ HELP,
I have signed a bond(on company's letter head) for 2 years, training period mentioned in my appointment letter is 1 year ,followed by probation for 6 months and then confirmation if they feel so...whereas for other employees , training period is 9 months.(reason given is that ma job profile is different from them).if i leave the company before the completion of stipulated period, then i hv to pay rs.25,000.but i am unhappy with the policies of the company.coz i am a post graduate but stipend given to me is based on ma Graduation level.they are not considering my P.G. and hv not yet revised my stipend since past 7 months. they hv sent me for external training for 4 days (it costed them rs.9000), now i dnt wish to continue due to some reason. i want to resign by fulfilling the stated notice period.but i am afraid that they will ask for bond money as well as training expenses. keeping in mind that my stipend has not been revised yet, cant it be considered as compensation from my side towards company for my training expenses. and what could be done to get releiving letter (they might not give so). and i hv heard that bond act got abolished.so is this bond legal.how to get rid of this problem legally.
pls help as soon as possible..
regards,
HK
Devajyoti Barman
(Expert) 17 February 2011
These Bonds are nothing but private agreement between two parties which are governed by Indian Contract Act. There is nothing called Bond Act.
Since there was breach of agreement from their part as well and the actions in breach of agreement are civil actions, so you can safely resign and join any new company. These company generally does not run after employees who have already quit the company.
Basavaraj
(Expert) 18 February 2011
In India Bond is illegal w.r.t employment since 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 amounting to the violation of the rights mentioned under Article 19.
As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.
Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The Supremes Court also has stated that the employer cannot hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.
Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.
Regards
Basavaraj
malipeddi jaggarao
(Expert) 19 February 2011
Difference in stipend for UG/PG, comparison of period of training to your peers and setting-off the assumed arrears of stipend are not the points for consideration, they are all prerogatives of employer that too in private sector. So do not entertain those ideas. As far as breach of contract on your side is concerned Expert Mr.Basavaraj has given you full and proper guidance. Only the risk you are running is you may not get the relieving letter immediately. You have weigh your options whether getting relieving letter is so important for you or you can manage without it. If it is important, entering into litigation will prolong the matter If it is not, resign, leave and forget.
Ajay Bansal
(Expert) 19 February 2011
Agreed with Devajyoti.
Advocate. Arunagiri
(Expert) 19 February 2011
the agreement is valid.
If there is any breach of terms both the parties can exit without any liablities.
I think you mean bonded labours are legal or not. Bonded labour are different category, in your case it is not applicable.
