Applicability of employment bond in india
Ankush Aggarwal
(Querist) 24 September 2014
This query is : Resolved
I had joined a company 3 months back, but at the time of joining i was not told about the signing of 3 years bond of employment with a penalty of 12 months salary in case of breach of bond. Now they are forcing me to sign the bond.
I would like to know whether this bond is enforceable in India or not.
Thanks.
Advocate. Arunagiri
(Expert) 24 September 2014
Yes this bond is enforceable in India.
But, you have the choice of accepting the bond or you can quit at this stage itself. If you quit at this stage the conditions of the bond will not bind you.
Anirudh
(Expert) 24 September 2014
Please think many times. Presently, you have the option of signing or not signing the bond. Once you sign it, then you have to serve the bond period. If you leave in the middle, then they will not relieve you unless you pay the bond money, especially when they incur any amount in training you. They cannot levy penalty. Yes, one can fight in the court of law, but till such time the case gets over, you will face the problem. Therefore, think several times before signing any such bond.
Kumar Doab
(Expert) 24 September 2014
Has the employer asked you to sign a BOND in writing?
Do you have any evidence that you have been asked to sign the BOND (audio/visual/witness)?
The BOND is created in lieu of what/which extra Ordinary favor e.g. certified Training from some Instt. that would add to your qualification....................or some extra ordinary skill/expenses on you for some favor..................?
You can politely decline to sign the BOND.....................and let you continue in employment without BOND and even add that on dated...................Mr/Ms............designation..............has asked to sign the BOND...................and that no favor/reason/logic for signing the BOND is offered/provided to you...............and you have not been allowed to carry the copy (soft/hard) of the BOND with you out of office to seek pinion/consultation……………….
The options for the employer are:
--- To terminate the employment citing some reason including declinature to sign the BOND, although it is unlikely.
---To refer to clause……………..in appointment letter and terminate without citing any reason: Termination Simpliciter. It may be easy if you are in probation period.
---To terminate after leveling some charge and with a concealed intent to pass a message to other employees to fall in line………………………..as per some HR practice/preference.
---To ask you to resign……………and settle you’re a/c, relieve you with honors……………………or block everything.
Later you may/may not get a clean BGV/reference check depending upon the mindset and internal policies/preferences/practices of the employer………………………
Hence if you build some written record it shall help you in future depending upon the situation in appropriate forum at appropriate time…………………….and defend your interest.
You must consult elders in the family, and preferably your labor Law Consultant/Service lawyer/employee’s union’s leaders/trade union leaders and apply your own judgment and take a suitable decision.
If in your trade you have to face such situations and come across employers that shall ask to sign BOND for no reason/for some reason that suits their interest but is detrimental to your (EMPLOYEE’S) interest then you should inculcate the habit of consulting in time and be properly informed so that you can take an informed decision and calculated risk.
ajay sethi
(Expert) 24 September 2014
dont sign the bond if you dont intend to remain in organisation for 3 years period . if you leave the organisation without serving the bond period company may proceed legally against you
P. Venu
(Expert) 25 September 2014
The bond, even if signed, would be enforceable only if the employer imparts specialized training.
malipeddi jaggarao
(Expert) 25 September 2014
I agree with the advice expert Mr.Ajay sethi. @ Mr.P.Venu - Sir, though it is not enforceable, they will create problems, they will not give relieving letter, and finally the employee has to go to a court of law to seek justice which would take its own time and affects the career of the employee. Hence before such signing bonds, one should be cautious and he/she should be well prepared to bind by the clauses of the bond or refuse to sign at the initial stage itself.
Kumar Doab
(Expert) 28 September 2014
Employee should understand the hardship faced by parents in raising a child……………………..and that the time and efforts put in by one person to get educated....are precious and invaluable.
Employee should defend his interest.
Verbal transactions are not on record………………………….as far as employee is concerned.
The various attorneys of employer in Line Management, HR/Admin/Legal cell personnel shall be recording verbal discussion in office as meeting and shall be inserting notes/notings in personnel file of employee and a record shall be built.
Employee should build sufficient written record under proper acknowledgment.
Employee should not remain entangled with Line Managers, HR/Admin/Legal cell personnel, beyond a point.
Resignation is personal matter and can be communicated from personal email id also followed by letter thru Redg. post.
Letter addressed to appointing authority, MD, Chairman, by Regd. Post should be preferred.
In your case if you have build record then it shall be easy to handle the employer and his attorneys…………………………………….thru your lawyer…………………………in case employer takes any action……………………………………….whatsoever………………………whichsoever.
P. Venu
(Expert) 28 September 2014
Anyhow, the young generation should sum up the sagacity to stand by law. Law cannot supply life in a golden platter; it can only provide the road map to face the difficulty that is life with self-respect and dignity.
T. Kalaiselvan, Advocate
(Expert) 01 October 2014
I agree with the experts that if you do not intend to be with the company for three years, better don't sign any bond and quit the employment now itself.
