Service bond

rahul (Querist) 23 September 2012 This query is : Resolved
Is the bond valid because i plan to resign.
I heard that only the training expenses have to be reimbursed.

BOND

Now these present witnesses and it is hereby mutually agreed and declared by and between parties hereto as follows.
1. BSNL shall provide training, the nature and duration of which shall be determined by the Chief General Manger NATFM Hyderabad (herein after referred to as CGM NATFM) whose decision in this behalf shall be final and binding.
Provided that the CGM NATFM may at any stage without assigning any reason discontinue her training, if in her opinion (which shall be final and binding), the trainee appears to be unlikely to be an efficient Junior Accounts Officer.
2. The trainee shall :
(A) Undergo the course of training at any BSNL Training Centre, selected from time to time by the CGM NATFM.
(B) Undergo such training at the said places with due-diligence and comply with the instructions of all authorized officers in regard to training and discipline at the said places.
3. THAT the trainee has agreed with the Company that after completion of the training, he/she shall serve BSNL in such department or departments at such place or places in India in such capacity in connection with BSNL’s business as BSNL may require from time to time, for at least five years after completion of aforesaid training on terms and conditions contained hereinafter and in accordance with the Rules and Regulations of BSNL as applicable from time to time to such trainees.
4. THAT the BSNL has called upon the trainee to furnish a Bond to the extent of Rs. 2,00,000/- (Rupees Two Lac only) for indemnifying the Company against all losses or damages which the BSNL may suffer by reason of the breach of the terms of this agreement by the trainee.
5. THAT the surety, at the request of the trainee, has agreed to give a Bond for the said sum of Rs. 2,00,000/- (Rupees Two Lac only) in the manner hereinafter appearing.
6. THAT the Trainee and Surety have agreed that in the circumstances if the trainee commits breach of any conditions of this Agreement or, in case the training of the said trainee is discontinued under the provisions to clause (1) above and the CGM is satisfied that the failure of the trainee to reach the necessary standard is due to his/her work (the decision of CGM in this behalf being final), or in case of continued adverse reports regarding his/her conduct or his/her political activities directed against the Government of his/her Country/BSNL, or if the trainee voluntarily quits for reasons not beyond his/her control any time during the course of training, or on completion thereof does not serve the BSNL for a period up to 5 years or during such period of service does not carry our his/her duties with diligence, BSNL shall have full powers to forfeit the amount of security deposit without any notice to the trainee and surety. Trainee and Surety have further agreed that they jointly or severally shall pay forthwith to the BSNL on demand an amount of Rs. 2,00,000/- (Rs. Two Lac only) as bond amount along with interest @ 18% p.a. along with losses/damages which BSNL may suffer by reasons of the Breach of the conditions of the Agreement and upon the trainee and/or the surety making such payment, the above written bond shall be void and of no effect, otherwise it will remain in full force and virtue.
7. THAT liability of the surety hereunder shall not in any manner be affected by any time granted to the trainee or any other indulgence which may be shown to him/her in respect of the recovery of the said money (s) by BSNL or shall it be necessary for the BSNL to sue the trainee before suing the surety for the amount due hereunder.
8. THAT during the continuance of this agreement the trainee shall not, without the previous consent of BSNL, enter the service of, nor be employed in any capacity, whether advisory, executive or otherwise or for any part of his time by any person, company undertaking or concern other than BSNL. Similarly, the trainee shall also not undertake/commence any business or trade etc., of any kind without prior permission of the BSNL.
9. THAT during the period of this Agreement, the trainee shall conform strictly to all Rules, regulations, instructions, bye-laws, etc., of BSNL and work diligently and faithfully and obey all lawful commands of his seniors.
10. The trainee shall devote his whole time and attention to the business of BSNL as above mentioned and shall not participate, be engaged or be interested or concerned, directly or indirectly, in any other business or occupations of any kind or nature whatsoever.
11. The trainee shall at all times conduct himself/herself in a manner befitting his/her position and the prestige of BSNL and show civility to and strictly obey and carry out all lawful orders and instructions of all persons placed by BSNL in authority over her and shall in all things use her best endeavor to promote the interest of BSNL in its business and will not utilize or divulge to any person, any of BSNL’s or his/her connections, trade secrets or affairs. He/She shall also observe and conform to all the rules and regulations and arrangements of BSNL for time being in force and amended from time to time for the control of BSNL Staff.
12. In witness whereof, the trainees and the surety have here unto set their respective hands and BSNL has hereunto caused………………………………………………. on his/her behalf to set his/her hand this the ……………………… day of ………………….

Witnesses :
1. ………………………
Trainee

2. ………………………
Surety

3.

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Guest (Expert) 23 September 2012
It is OK. You could have thought over the provisions of bond before entering in to, as post facto wisdom has no value.

What you have heard about "only the training expenses to be reimbursed", has no relevance when it comes to the question recruitment expenses incurred by the employer in processing applications of numourous candidates and making recruitment of just a few and further fresh recruitment charges for substitutes as well as loss due to training arrangements of substitutes and hamppering of services/ business caused by abrupt leaving of the organisation by any employee.

V R SHROFF (Expert) 23 September 2012
Shri Dhingraji clarified employers view very well.

Over and above Loss of Time and opportunity also cost the Company.

Employee are selfish many a time, and as acquired skill, knowledge, they quickly want to encash, joining another company with higher salary. Motive is money !!
Abruptly leaving Organisation damages it.

Select and train another person , delay their schedule, disturb their Organisation.

Bond is a Contract. To protect both. Should be faithfully carried out.