service bond

Querist : Anonymous (Querist) 24 June 2010 This query is : Resolved
Dear All

I want to know about the legality of the service bond signed by any employee with his employer.The employer is not providing any or any special training to the employee.Whether a service bond signed by an employee wherein it is required to serve a company for at least three years and in case he doesn,t want to continue with the company due to some personal reasonsthen what shouls he do?
Whether the company may file a suit for recovery of money which is rs.1lakh in case of breach of agreement.
Kindly advice and quote some importnat judgements.

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mahendrakumar (Expert) 25 June 2010
service bonds are valid.

many companies at the time of joining,insist on signing of service bonds.

once you have signed their bonds,you are liable to pay the bond amount i case of leaving the company before termination of the bond period.

even if no separate class room training is given, on the job training would be given (without that the company wont be able to utilise him/her)

AA RAMAKRISHNAN (Expert) 25 June 2010
Dear Member:
A service bond is an agreement. It is a legal document since the conditions enumerated in the bond are agreed upon by the parties and they have signed it in agreement.
Breach of any condition by any party is liable to compensate and make good of the losses.

Thanks.
AAR. Krishnan

Querist : Anonymous (Querist) 25 June 2010
Dear Sir

Thanks for your reply, But I want to know that whether a service agreement which is one sided and explains all the benefits in favour of the company and completely silent about the any liability for company, is still valid.Can any employer bound any employee for continuing of services? I heard somewhere that one sided agreement is not having any validity and supreme court has given some judgements on this point.
Kindly also tell about the measures which any employee can take to save himself from legal proceedings.
Thanks

AA RAMAKRISHNAN (Expert) 25 June 2010
Dear Member:
You can not say that it is one sided agreement. In a service contract the employer initialy spends money to train the employee. It is considered as an investment on man power. The concept is to recover the money they spent they fix a time bound agreement. The conditions may be favourable to them, but initially it is not unfavourable to the employee. In many cases after verifying credetials of the conditions the Supreme Court has struck down such agreements in rare cases.

If the conditions are voilating your fundmental rights you can seek legal remedy. It seems that your appointment is under the policy of "Hire and Fire" and you are not covered under the ID Act.

You are now bound by the agreement.

Thanks
AAR. Krishnan

Querist : Anonymous (Querist) 31 July 2010
Dear Ramakrishnan Sir

Thanks for your valuable suggestions.But they have not given me a single day training.I am also thankful if you kindly give me some judgements of supreme court in respect of service bond applicability.

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