Is this kind of employment Bond is Legal in India?

This is nuisance that has to be tackled legally. Such sorts of terms are often misused by individuals, vested interests, boooooses, offices itself.

I want to add to this:

Quote from the earlier communique:

2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

2.2 You may at any time terminate this agreement after Contractual Bond period by giving in
writing to company 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

Is this sort of terms valid in government offices for permanent posts? Can this be contested?

You have mentioned in your post:

A) 2. Termination of Employment; 2.1, 2.2

Employer and employee can terminate the employment on equal terms. It is not stated salary mentioned is Basic, Gross, CTC.

B) 1. Contractual Bond:” I had signed a commitment bond for 2 year on plane print out offer letter not on bond paper."

"1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates.

"As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate and the technology used is open source."

While you are still in employment you can submit gentle representations ( in writing under proper receipt with original seal and signature, which you can even obtain from desk where all post/courier/ of the company are received, followed by email, or you can submit by registered/speed post) to your appointing authority/MD/CEO, and state that since you have not provided with any training or course and you already had proper skills and expertise to carry out the duties of your employment, and you were experienced candidate and the technology used is open source, hence Contractual Bond, is void and should be cancelled.

You shall need lots of patience, persistence, negotiating ability and should remain cool and calm, and amiable. Build and maintain rapport. If you take up another employment you shall need your company, higher ups to obtain your F&F, experience certificate, relieving letter, NOC/NDC, good reference check, etc.

It is almost certain that you shall have to face sessions with your reporting authorities, higher ups, HR if any.

If you have accomplished all tasks, contributed to the company, and if you have received any appreciations, you should have all records.

If you feel that despite your level of expertise, qualification, skill, experience, you have not been awarded adequate salary, increments, perks, rise in salary compared to your colleagues, peers, you should take up the matter, in writing in gentle manner.

It is not clear whether it is stated in your contractual bond that you shall not be given any hike in salary. It shall be appropriate to show all docs and records to elders in the family, experienced and competent well wishers, your lawyer/law firm.

If your colleagues, peers have been awarded batter salary but you have not been, due to contractual bond, you should minute it under acknowledgment, in a gentle manner.

However you must minute the meetings and submit under proper acknowledgment, and build record which you should be able to prove (currently and/or later).

Looking into the trends in the industry, the company may not reply in writing.

However you should be able to gather all facts and records.

Another scenario is that you have sufficient records, data, facts, documents with you, and in case you terminate the employment, in line with terms of termination, and your company decided to take any penultimate action you should be able to defend.

@Kumar, I am also in same situation, but my bond was on Rs. 100/- bond paper. I am writing Company officials since more than 2 months with all the facts, but company is silent abt my dues. Company gave me relieving letter but not dues. No reply from HR, even MD, ED of the company. How to tackle the situation now? Shall I send letter again ? or shall I give final reminder menioning legal case ? Please advice.

Kindly visit your local service lawyer/law firm and show all documents and records.

Your lawyer/law firm shall structure the communications to be sent by you, and then to take the right legal rcourse.

I recd form 16. Company showed dues as paid in it. I told company to give revise form 16 otherwise I will complain to IT dept. Company paid me all dues immediately. But alongwith dues, company issued a letter to pay bond amount within 7 days otherwise it will take legal action. What action can Co. take ? There was 'Arbitration rule' in the bond. Can co. go for arbitrator and then legal ? Please advice.

You may consult your local lawyer and show all of your documents. Your lawyer shall advice you after examining all records.

Probably you communicated verbally to the company to pay or you shall complain to IT dept. and probably company wanted you to consider the amount as a parting gift.

You can still complain on the illegal and malpractice of the company, and proceed as per the advice of your lawyer.

Anitha has mentioned some details e.g she never received any training till date and has a comfort zone.

The terms and conditions of any ventures should be studied carefully and a legal advice should be obtained before acting in haste and signing on dotted line. Many of the companies are inclined to introduce bonds and are also being advised to get the bonds with arbitration clause signed from employees. The purpose is to get extra leverage and handle on employee. Will the company agree if employee asks the company to sign a bond drafted by his lawyer or insert a clause that arbitrator shall be appointed by him?

After all if good jobs are in scarcity, so is good manpower.

The conditions are drafted to favor the employer so that majority of the employees are deterred to proceed against the employer, even if they are exploited, and to tire the employee by lengthy processes.

In short employee has to vigilant and SMART while joining and while in  employment.

Sir, I communicated by mail first and then by speed post letter. But surprisingly, company acted immediately on mail itself and issued cheque which I was requesting since almost 7 months. Now no dues with company, but only letter which was accompaning cheque. Now I recd. relieving letter as well as dues also, still company will take any action ? does it have any validity ? please advice.

You must show all records and notice to your  lawyer for the needful to be done. It shall be better if a fitting and a stern reply is sent. After your reply company may think over the facts again and may not proceed.

If you do not reply company may proceed.

Your lawyer and your records and inputs to lawyer shall help you to defend.

Thanks Sir, I will be sending a letter to HR. A small question : What kind of action company can take ? Wll it be arbritration as mentioned in Bond or any other type ? Regards.

Company and its lawyer should proceed as per the bond i.e. arbitration. It is believed that the arbitrator shall be appointed by company.

Usually arbitrators lean towards the company.

Sir, in that case what should be my line of action ? please advice.

Avail the services of a competent lawyer at your location.Show him all the records and explain the matter and arrange to send a fitting and stern reply to the notice you have received. If company proceeds ti file a case, your lawyer shall do the needful.

I have signed a bond on stamp paper as a fresher while joining a software company which was giving decent ctc. The bond was like 4 months of my salary on the gross ctc at resignation time. The work load was too much .. There are months during this period in which my average timings in company was 14 hours on an average. So now I want to leave the company as I have a decent offer in my hand and good work. So I resigned and from that day onwards my managers , my CTO every one is on me. giving lectures and talking ugly to me. So I got frustrated and decided to walk away right there. This company has a notice period of 3 months . And getting idea about my frustration the company behaviour is getting worse and worse day by day. So to leave the company right now. I have to give 7 months salary. And I want to go legal for this. Is there anything I can do against the company? And what is the proper time for doing that "After giving the money and getting the exp letter" or "before that"?

Please help me in that as soon as possible..

@ Serious Bandi,

>>> Is it sure that if you tender notice pay you shall get relieving letter , service certificate, Form16, FnF statement, FnF wages……………………………………clean reference check/BGV?

>>> HR Personnel/Line Managers are not your employer.

Why are you stuck up with them?

Anything that they utter can not be a rule.

Check HR Policy/Service Rules and Regulations, standing orders  on shared portal and download these.

The service certificate, FnF wages has to be supplied to all employees on last day in office.

The employer can deduct only those amounts from wages that are permitted by law for anything else it has to seek permission of employee………………..

For recovery of amounts from employee it can adopt legal recourse and approach court of law but can’t sit on FnF, Service Certificate………………….Relieving letter,  

Notice Period/pay: Doesn’t depend upon T&C inserted by employer in any private agreement that employer has signed with employee e.g. appointment letter, contract of employment, committement bond, service agreement……………………..etc etc…

It may not be necessarily applicable as 90 days…………………….and may be not more than 30 days in your case.

OT; Beyond 8hrs/day…………….48hrs/week OT is applicable. There is a Cap on max. hrs of OT too an no employer can extract work more than from any employee.

This is looking into health, safety of employee.

Stake your claim on OT.

Download the details of attendance, work load assigned to you and generate proof.

Employer will certainly claim NO OT as allotted and is applicable, and employee belongs to ‘Exempt’ Category.

Let the employer and its cronies in Line Management/HR state/say whatever they want, you stake your claim in writing, on record, under proper acknowledgment and generate and keep the evidence carefully.

Designation alone does not decide individual is covered as ‘Workman’ “employee’ or not.

If you have been working extra 6hrs/day………..(14-6=8)………………….then you have been working for 1.5 days/day for the wages of 1 day………………..in other words……………………by taking say 25 working days/month……………..1.5*25=

37.5 instead of 26 days………………..

OT=Monthly wages/26/8*6………………….

Assuming that your monthly wages were Rs.26000/pm………….

OT=26000/26/8*6=18750/pm, you have lost………..Why?

Hope by now you have understood that CTC offered to you was not decent.

You were at loss @18750/month……………………….you worked like a coollie……………….suffered ugly/abusive conduct…………

You are also suffering loss of 7 months Pay………………

Thus if you have worked for 1 year then you have worked for free rather might have paid salary to your employer instead of getting it…………………..Calculate yourself…………….

Talking Ugly: Record (audio/visual), keep witness, and once you have evidence build written record…………

Bond:

It is created by your employer in lieu of What? Why?

What is that extra ordinary favor that your employer has granted in lieu of which this Bond is created………………….e.g.  Training/Certification from an Inst. that has added some extra qualification, extra ordinary skills to your qualification/vitae?

If nothing of that sort is extended to you then…………… why this Bond?

Liquidated damages: stated in bond equivalent to CTC/Gross wages is against what loss? Is it applicable if employer terminates employment and has to pay employee as employee too shall need 4 months to find suitable employment/source of livelihood, and by termination employer shall be causing loss to employee.

Next Offer of Employment; Preferably: Inform in writing about the Bond/Notice period……………………….threat of non issuance of acceptance of resignation, FnF statement, service certificate, relieving letter, etc and that you can provide only the copy of resignation, proof of dispatch (by redg. post) and nothing more       ………..and therefore next employer should absorb you on the strength of these docs only and shall not terminate if you are not able to supply others………..

Negotiate to buy out your notice period/pay, Bond amount……………….and join without signing any service agreement/bond……………….

There are many threads that you may find relevant and can pick up points…………..

It shall be appropriate to approach a competent and experienced labor consultant/service lawyer with all docs on record and proceed under expert advice of your lawyer……….

If at all you decide to pay then before that you need to build written record under proper acknowledgment so as to agitate later……………………..and your Labor Consultant/Service lawyer can advise you best…………………

Needless to mention that you should obtain Relieving Letter with good comments on conduct/performance and avoid without comments/and of course with adverse comments……………….

Demand to compute Bond money/notice pay in FnF statement and decline to accept the FnF statement in writing on record.

The situation that you are facing is being faced by majority of the employees, especially in your trade……………………………because despite efforts majority of you don’t unite while studying in colleges, are allured by campus placements, do not report  the exploitation details to fellow students/students’ unions/parents associations and get these companies black listed………………………..and while in employment you do not unite to form employee’s unions, don’t become member of employee’s unions, do not affiliate with Trade Unions, don’t approach Inspectors /Chief Inspectors/Labor Commissioners………………under various Acts/enactments………………….and make such employer’s/their line managers/HR personnel  famous…………….

The IT employees lead campaign on social media e.g.

IT/BPO Voice of India | Facebook

Why can’t student unions/employee unions lead a campaign again?

Are you aware that employee’s can form ‘Works Committees’ and employer has to negotiate service conditions with employees?

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U51N3pSSwb8

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UwDFP0eBmXU

https://www.lawyersclubindia.com/experts/Employer-not-giving-relieving-letter-476871.asp#.U51fPpSSwb8

https://www.lawyersclubindia.com/forum/3-notice-period-relaxation-advice-103873.asp#.U6Uei5SSwb8

https://www.lawyersclubindia.com/forum/Resignation-letter-104375.asp#.U60YOZSSwb8

https://www.lawyersclubindia.com/forum/Denial-of-relieving-letter-service-letter-104474.asp#.U60eGJSSwb8

https://www.lawyersclubindia.com/forum/Company-not-clearing-my-accounts-104413.asp#.U60eY5SSwb8

https://www.lawyersclubindia.com/forum/Being-forced-to-serve-np--104639.asp#.U7e88ZSSwb8

https://www.lawyersclubindia.com/forum/Nasscom-clarifications-104557.asp#.U66SkpSSwb8

https://www.lawyersclubindia.com/forum/Absconding-fron-an-it-company-in-probation-period-104154.asp#.U66Y0JSSwb8

https://www.lawyersclubindia.com/experts/Unconscionable-contract-termination-of-services-of-employee-481296.asp#.U7e1-ZSSwb8

https://www.lawyersclubindia.com/forum/Clauses-wrt-to-joining-client-co-starting-own-setup-104319.asp#.U7e6fZSSwb8

https://www.lawyersclubindia.com/forum/My-employer-is-still-having-an-undated-cheque-drawn-by-me-104813.asp#.U7e6K5SSwb9

>>> What is this company/establishment: Commercial, Industrial, Small Enterprise?

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board! Or You may find out on your own.

What is its line of business; IT, ITeS,banking etc?

You are in which state?

Does company have an office at your location?

Does company have an office where you are right now with your family?

Redg. office of the company is in which state?


How many employees are employed in it? 

What is your designation and nature of duties? 

Has your service been confirmed in writing? 

Since how many month’s you are working with this company?
Are you a member of employee's/ Trade Unions?

Did you submit notice of resignation or resignation with immediate effect?

Has your resignation been accepted?

Has the employer inserted any clause on Non Compete, Non Solicitation, Trade Secrets, Non Disclosure too in this Bond?

Have you registered your profile on NASSCOM/NSR?

The info by you on all questions asked in this thread shall help you, hence post it pointwise.