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mahender singh (none)     22 March 2013

Bond money and notice period

I need some help on employee bond, I joined a company under 2 years of bond and I left after working for 1.5 years without serving the notice period(abscond). Now I have received a letter from company asking for bond money + 2 months of salary, total is around 2.20 lakh rs. The company is big MNC and I dont need the experince letter. should i be worried about it? can they take legal actions? Thanks



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 11 Replies

Advocate Sastry (Advocate)     22 March 2013

Have you executed the bond ?

mahender singh (none)     22 March 2013

I left 6 months before the bond period agreement.

Kumar Doab (FIN)     22 March 2013

The employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm before signing on the dotted line, and should not abscond.

It is better to consult in advance than to repent later.

Company should have sent the stinkers/notices/show cause notice/legal notice to you and finally must have terminated your services, and must have supplied the termination order.

The company shall always claim you signed by your free will.

What were the reasons that compelled you to abscond???

It shall be appropriate and worthwhile to show the advertisement for the job, interview call letter, selection letter, offer letter, appointment letter, standing orders of the company, bond, stinkers/show cause notice/notice/charges leveled by company/Inquiry if any conducted by company, termination order, legal notice demanding bond money etc… to a competent and experienced labor consultant/service lawyer in person, give inputs in person, spend some quality time with your lawyer, and understand the merits, and then proceed under expert advice of your lawyer. Is there any clause on arbitration in the agreement??? You must not conceal anything from your lawyer.

It is reiterated that the ground and reason for creating the agreement/bond e.g: employee was beneficiary of any special favor, concession, training at the full/part cost of employer or not….and based on such reasons was there any breach of the service agreement/undertaking signed by employee………..and due to breach of the agreement by employee ……any damages suffered by employer…. legal injury suffered by employer…….should be looked into by a competent and experienced labor consultant/service lawyer-law firm specializing in such cases.

If at all mater lands up in court, the courts can assess and decide the reasonable cost which won’t be higher than the amounts expressed in agreement.

The court may even decide that the mitigating the cost of damages is not necessary……..

You may understand the Sections 73, 74 of the Indian Contract Act and the implications in your case.

Did you ever try for pro rated settlement of the bond amounts? However now if at all you wish to submit anything in writing to the company let it be structured and drafted by your lawyer.

In the meantime you may find the attachments useful.

If you feel like you may attach the documents in this thread.

Kindly erase the names etc to maintain the confidentiality.

Valuable advice of learned experts/members is sought.


Attached File : 351609481 417759075 validity of employment bonds.pdf, 351609481 background paper.pdf downloaded: 142 times

Advocate Sastry (Advocate)     22 March 2013

Dear Mahender,

You have already written that you left 6 months before... What I mean if you have executed a bond on stamp paper before joining the company, there is every possibility for the company to proceed legally for recovery

mahender singh (none)     22 March 2013

Thankyou for reply, it was not a formal stamp paper, just a simple print out page with the statment and my father has signed the bond. I can pay the bond money but I am not sure about the notice period recovery which is 2 months of my salary. In the joining agrement it is mentioned that I have to give two month of notice period before leaving the company, but they didnt mentioned anything about what can happen if I dont serve 2 months, when I talked to them about this they said you have to give bond money and if I want experience letter I have to pay full 2.20 lakh. So I am paying bond money and also not getting experience letter.

Advocate Sastry (Advocate)     23 March 2013

Good to sort out with the company

Kumar Doab (FIN)     23 March 2013

You have posted that:

“So I am paying bond money and also not getting experience letter.”

You are neither settling nor negotiating you are surrendering and even after making the full payments you are in sheer loss.

The kind of arrangement you are entering into with this company shall continue to have adverse affect on your future endeavors.

Companies are always looking for such candidates who shall get terrified and horrified to such an extent.

You should hold and get the merits evaluated from your lawyer.

It is reiterated that:

You may visit a competent lawyer with elders in the family.

It shall be appropriate and worthwhile to show the advertisement for the job, interview call letter, selection letter, offer letter, appointment letter, standing orders of the company, bond, stinkers/show cause notice/notice/charges leveled by company/Inquiry if any conducted by company, termination order, legal notice demanding bond money etc… to a competent and experienced labor consultant/service lawyer in person, give inputs in person, spend some quality time with your lawyer, and understand the merits, and then proceed under expert advice of your lawyer. Is there any clause on arbitration in the agreement??? You must not conceal anything from your lawyer.

 

What were the reasons that compelled you to abscond???

Did you ever try for pro rated settlement of the bond amounts?”

“However now if at all you wish to submit anything in writing to the company let it be structured and drafted by your lawyer.

 Finally it is your money, your life and you may proceed as deemed fit at your end.

mahender singh (none)     23 March 2013

Thanks kumar, My father dont want to get into legal issues and because he has signed the bond aggrement I will just pay the bond money. I dont want to take any risk and dont want company to call my dad.

Kumar Doab (FIN)     23 March 2013

You have posted that:

---“My father dont want to get into legal issues and because he has signed the bond aggrement I will just pay the bond money. I dont want to take any risk and dont want company to call my dad.”

Firstly it reinforces that “The employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm before signing on the dotted line.”

Secondly: It is not as simple as that as perceived by you.

You have not shared------What were the reasons that compelled you to abscond???

It is not understood why are you terrified and horrified to such an extent.

You should hold and get the merits evaluated from your lawyer.

Therefore you may meet a competent and experienced service lawyer as early as possible with elders and understand the merits in your case.

If company has not provided: any specialized training adding to your qualification extraordinary skills, special favor, concession, etc it may not succeed….

---It is not understood why you unwilling to even meet a lawyer specializing in such matters.

If a reputed lawyer, who has examined your documents and inputs, opines that your case doesn’t not have any merits even then you may negotiate for a prorated settlement i.e. Bond money/24 months*5 months= Rs……

Or you may decide to pay up and live with the consequences……

There is a possibility that courts may also decide on a reasonable amount……

---The bond created by company may be in violation of standing orders of the company…..

Your lawyer may opine that the bond is unconscionable, void, unenforceable, coercive, illegal………………

If you were in probation: the notice period of 2 months may be unreasonable…..

Various enactments like IESO Act/Model Standing Orders, SE Act etc suggest notice period to be at 15 days--30 days.

Your lawyer may ask you a set of structured questions and may opine that you are within the definition of a workman…………..

---If you wish to avail the services of LCI lawyer:

Related Lawyers list is given below on this web page…..

Related 'Business Law' Lawyers

 

You can also conduct lawyer search at:

https://www.lawyersclubindia.com/lawyers_search/#.UUv2qEpFZ_4

 

Your near and dear ones can also guide you to a competent and experienced labor consultant/service lawyer. In each city there are few lawyers who practice in labor /service law only and specialize in it and they are well known. Some lawyers may prefer to take up employers and some may prefer to take up employees cases.

 Finally it is your money, your life and you may proceed as deemed fit at your end.

Valuable advice of learned experts/members is sought.

 

mahender singh (none)     24 March 2013

Thank you for replying Kumar.

Dont want to get into legal case because my father will not support me in any way, even if I have some chances of getting away with bond money. He is into politics, very reputed man never been into any legal law suite. I am not very frank with my dad either, he dont even want to discuss it, he has ordered me to pay the money and thats it for him, I have no say( but I am the one who has to pay money from my pocket ), because he signed the bond I am stuck, i should have thought that in the starting.

Left the company because the working equipments were not sufficient. There was no internet connection and dead lines were strict.

My father agreed to sign the bond, all happened under my family guidence.

Dont want to meet lawyer because of the daddy issues.

Under probation the 2 month notice period might not be reasonable but it was mentioned in offer letter that I have to give 2 months of notice but not about the consequences if not following it.

because my father dont want to get involve in legal issue and dont want to get a call from the company, I have no choice but to pay the money. I guess because of that there is no solution but to pay the amount.

 

mahender singh (none)     24 March 2013


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