Financial bond
Dan Avson
(Querist) 06 March 2008
This query is : Resolved
I am working with an export company.
When i had joined this company, i had to sign a bond which stated that i would have to continue with the company for minimum three years.If i do not do this, then i will have to pay them a certain amount.
Now, i want to leave the company.I have not yet completed three years and i do not see any scope for further growth here.
Please inform what is the legal value of this bond.This bond is on a 100 rupee stamp paper. Can the company force me to pay this amount to them. Are such kinds of bonds are a practice in the industry.
I would much appreciate your response in this regard.
Vishwanath tripathi
(Expert) 06 March 2008
Dear Dan Avson,company can not force you to pay that amount if you have not taken any advance .when you are resigning inform them 1 month in advance and don't say where are you going to join ,and no company can bound anybody for such a long period of 3 years.and don,t worry about the bond.
Dan Avson
(Querist) 06 March 2008
Dear Mr. Tripathi,
Thanks a lot for your answer.I had taken some advance from the company(for vehicle),when i had joined,but i have paid that back.
If i give a month notice and leave after that,will they give me relieving letter.Will they not refer to the bond.I want to clarify again even if this bond is on a stamp paper, still it has no legal value.
Thanks.
manmeet singh arora
(Expert) 07 March 2008
DEAR DAN AVSON
1.AS YOU HAVE ALREADY CLEARED THE ADVANCE
SO THEY CANNOT FORCE YOU ON THAT PARTICULAR GROUND
2.ONE MONTH NOTICE IN ADVANCE WILL ASCERTAIN YOUR LEGAL STAND AND CANNOT BE CHALLENGED IN ANY WAY
3.THE BOND EXECUTED BETWEEN YOU AND THE EMPLOYER IS ON CERTAIN TERMS AND CONDITIONS
AND CANNOT TAKE THE SHAPE OF FORCED LABOUR
4.THE BOND IS JUST A CONSIDERATION AND CAN NOT SUBSITUTE YOUR WIII TO JOIN ANOTHER COMPANY
5. THIS TYPE OF BOND ARE IN PRACTICE IN INDUSTRIES AND DO NOT FORM ANY LEGAL COMPLICATIONS, THEY ARE JUST TO CREATE FEAR PSYCOSIS.
Hiralal Das
(Expert) 07 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.
