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Arun Balaji (xxx)     21 July 2011

Two Years Bond

I am with Company x for the past 9 months. In the month of December I travelled abroad for the company for two weeks to transition a activity for which I have signed a two years bond for 2 Lakhs. I have transfered the knowledge to a new employee in two months and for the past 6 months I am into a different activity which is completely out of my experience. Due to health reasons I am planning to resign the job. my question is:

1. Do I have to pay 2 Lakhs to the company.

2. Is it mandatory to serve three months notice period ?

 

Please advice.



Learning

 8 Replies

himanshu harbola (Comp. Sec.)     21 July 2011

in which state u r located and ur company......

Arun Balaji (xxx)     21 July 2011

I am from Chennai, Tamil Nadu and the company is a UK Based Manufacturing Industry.

Kumar Doab (FIN)     21 July 2011

Do you have any document to prove that you have transferred the knowledge to another employee?

Were you asked in writing to transfer the knowledge you gained from your trip abroad?

Is it stated in your bond or any other document that you shall undergo training and on returning you shall transfer the knowledge?

These documents can help you to contest the money claim of the company. Kindly note whatever be the situation, you can not stop the company from lodging money claim.

You can peruse and appeal to the company to drop the condition and cancel the bond. Company can do it.

Do you have copies of all documents towards expenses in occurred on you amounting to Rs. 2 lacs?

You can surrender notice pay in lieu of notice period. Your prolonged sickness can be one of the reasons for separation i.e. you can resign or company can terminate you.

You should apply for sick leave and you should keep prescripttion of doctor, medicine bills, diagnostic reports etc, medical certificate advising bed rest, all duly stamped and signed by the specialist doctor.

Arun Balaji (xxx)     22 July 2011

Hi Kumar,

 

I have added the answers inline below the queries for your reference.

Were you asked in writing to transfer the knowledge you gained from your trip abroad?

Arun:- No. The Bond stated that I have to serve the company for two years from the date of return from abroad. In case if I leave the company before the 2 years, I have to pay a sum of 2Lakh Rupees to the company.

Is it stated in your bond or any other document that you shall undergo training and on returning you shall transfer the knowledge?

Arun: I am not clear with this as I do not have the copy of the Bond. I requested the HR department to give me a copy of the same. But they have not done this yet.

These documents can help you to contest the money claim of the company. Kindly note whatever be the situation, you can not stop the company from lodging money claim.

You can peruse and appeal to the company to drop the condition and cancel the bond. Company can do it.

Do you have copies of all documents towards expenses in occurred on you amounting to Rs. 2 lacs?

Arun: No.I do not have the documents towards the expenses. But there is no money withdrawn by me during the training period apart from my daily food expenses.

You can surrender notice pay in lieu of notice period. Your prolonged sickness can be one of the reasons for separation i.e. you can resign or company can terminate you.

You should apply for sick leave and you should keep prescriptttion of doctor, medicine bills, diagnostic reports etc, medical certificate advising bed rest, all duly stamped and signed by the specialist doctor.

Arun: I have applied for sick leave and it is a Loss of Pay for me due to shortage of leave provided for me.

And now I am no way linked to the process for which I travelled and got trained. In fact I have moved out of that country's process and I am into a different activity.

 

Please advice....


 

haresh patel (trainee)     22 July 2011

Hello everyone,

I am working with PVT LTD company from past 12months. I have a bond of 3 years which includes 1 year training and 2 years service.

Now 1st year training includes 6 month general training and remaining 6 months departmental training in our interest of department.

Now after 6 months general I provided my preference for departmental training as per my interest. They said I would have to make project and show my skills to get into department , I did the project. ( though project was not at all based on my field of interest and no where related to it.) Now project was given to us for 1 month period which was then extended to 2 months and said they will implement the project which was not done.

After that they left me on my own in company without any work or department for next 3 months. During this time they said I need to improve my skills ,and sometimes HR person said the things like this “ we may not accommodate you in your department “, “ May after 1 year all of you not get conformed and some of you may have to leave the company” Now during this period I decided to go for further study to secure my future but it was all depend on VISA approval.

Now after 11 long month they have given me department of my interest ( just a 20 days before my 1st year complete- which was supposed to provide me after initial 6 months ) Now I have got my VISA approval after serving 7 days in the department.

But I am planning to go for further study. And I have informed the company that due to illness I will not come to company for next 1 month and during this time I will fly away. Still I have not informed company about my VISA and further study.

So it’s a great confusion to me that they might harass my family when they will come to know about it. So please guide me, what should I do? I afraid that if I will inform the company they will start legal formality and then force me to pay the bond amount which is very high and not be able to pay it.

Kumar Doab (FIN)     22 July 2011

Use your rapport, goodwill, contacts, and skills like persuasion, negotiation and obtain:

-Copy of the bond. If required you can submit a written communication, under acknowledgment. Keep a copy.You should have secured a copy when you signed it. You are within your rights to obtain a certified copy.

-Some document from company that you have transferred the knowledge, to Mr...........to whom the knowledge has been transferred.

Some document from other employee that you have transferred the knowledge to him.

Some record of the company e.g emails etc. which can establish that you have transferred the knowledge.

Or you can draft and submit a written communication (under acknowledgment, and keep a copy)stating that you have transferred the knowledge, successfully to Mr......as per orders of Mr.........from period ...to................and from dated............Mr (Other employee) is successfully handling the assignments related to the knowledge you transferred, in place of you, and as per the orders of Mr......you are handling other assignments.

Since you have transferred the knowledge use your rapport and skills to convince the company to cancel the bond. If company liberates you from the bond, this shall be the best option.

-If company lodges a money claim company shall have to supply all bills towards all expenses incurred on you including food expenses. You should have kept a copy of all bills e.g. ticket, visa, airport transfer, boarding lodging, training expense, etc. Hope you have the training certificate.

It shall be appropriate to consult a local, competent lawyer willing to take up your cause.

-You should submit notice of resignation citing reasons e.g. sickness and ask the company to relieve you. You are liable to tender the notice pay. Submit company property under proper acknowledgment and obtain NDC.

You can ask for acceptance of your resignation, F&F, relieving letter, form 16,PF accumulation reports, PF transfer/withdrawal forms, work experience certificate, NDC/NOC, etc. Company can block relieving letter, but can not block work experience certificate.

Later if company lodges money claim you can avail the services of a local, competent lawyer, willing to take up your cause, wholeheartedly, and your lawyer can help you to liberate from the situation.

You alone would know how useful this training has been for your vitae.

In future consult the elders in the family, competent and experienced well wishers, lawyer/law firm, before jumping to sign on the dotted line. It is better than repenting later.

Valuable advice of learned Mr. Harbola and other members  is sought.

Human Resource ( HR)     22 July 2011

Hi Kumar,

"You can ask for acceptance of your resignation, F&F, relieving letter, form 16,PF accumulation reports, PF transfer/withdrawal forms, work experience certificate, NDC/NOC, etc. Company can block relieving letter, but can not block work experience certificate." 

In above conversation you have stated that the employee is entitle to get the experience letter even if he is not relieved but is that employee entitle to join somewhere else on the basis of experience letter?

What if the employer claims that the employee has taken some data or drop out a project in between?

 

Kumar Doab (FIN)     22 July 2011

The next emplyer can accomodate candidate on the strength of experience certificate.All employers know the trends in the industry, forced resignations, etc.

A sensible, reasonable,balanced employer shall refrain from inserting adverse comments. Any comment which can not be proved, or adds stigma, or affects employability and livelihood of the employee can be contested. The employer and HR in specific should assess the force with which employee can fight.

During the reference checks employers rather HR is known to issue verbal comments. However if one door is closed many shall open.

What happens to the projects when employee is forced to resign with immediate effect or terminated.

In case of seperation the best approach is the one which suits both parties. Worls is small and one can face another one.

This is the haertfelt opinion.


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