Mr. Thukral (IT) 11 May 2008

Bond and its significance

Hi,

I have joined an MNC IT company in Chandigarh which has made me sign a bond for three years on stamp paper of Rs 10/- in which there is a condition which states that if i leave the company during this duration of three years, then i'll have to pay 4 times of my CTC.

I have also heard that no IT company can bind its employees into such a bond.

Also tell me in case I plan to move to some other company during this duration, breaking this bond, can they force me to pay the amount mentioned as they have my original certificates with them. Also, can I get my experience certificate from the company in such a scenario?

Please advice.

Thanks.

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8 Replies

Manish Singh (Advocate) 12 May 2008

Dear Mr. No need to worry, but just keep it in your mind that if they have incurred expenses on you for your training or something, then you will have to bear those expenses otherwise you are free to go any where fpr your employment. go and switch the job over, they can not bind you for a month either.

Guest (n/a) 14 May 2008

Dear Sukhpreet No MNC can ever exercise this kind of liberty to get a bond signed which amounts to infringement of your basic freedom.U have full liberty to move to any part of india to work at the workplace of your choice.You should be cautious however about the documentation of all activities particularly related to those activities whicha incur companys expenditure on you.However under those circumstances , the companys act of securing bond may be cited which can cause enough headache to the company.

Lt Col atultyagi (management) 14 May 2008

The act of the company of getting bond of this nature infringing your basic liberties nay cause teething problems to the company.

wcp (service) 15 May 2008

The contract act provides that there cannot be an "Agreement in restraint of trade". Though the company cannot bind a person you are certainly liable to reimburse them the direct cost towards your training. That is the max they can ask in the worst case scenario.

Manish Singh (Advocate) 16 May 2008

I would like to add here that sec 27 of the Contract Act does not bar partial restraint in freedom of trade and commerce, it only restrains complete restriction on freedom of trade. So this should alwys be kept in mind while determining the nature of bond which you have entered into.

Hemanth (hr) 19 May 2008

on one of the boards her there was something mentioned about the "presence of oath comissioner" during the time of signing the bond or a pre-attested copy of the bond. what does this mean? Is there any govt authority needed as a witness to the act of signing the bond and is a stamp paper really necessary for the bond? I saw lot of companies give bonds on their letter heads. If a bond os signed on the companies letter head, is that bindable? Please suggest....

Guest (n/a) 26 May 2008

Sir, Request you to kindly provide me your contact details as I would like to know more on HR Contracts and vetting of the same. Regards, Pooja, praaj2007@yahoo.com

Guest (n/a) 26 May 2008

Employment Bonds binding an employee to the company for a specific period are legally Invalid in india, the Employer can be sued in court for the same. Regards, Pooja praaj2007@yahoo.com

Bond and its significance

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