Sneha Yadgire 16 January 2017

How to get clear exit from bond?

Hi Everyone,

I am working as Senior Software Engineer in MNC which has one branch in Mumbai. I signed bond of 4yrs at the time of joining on 21st Jan 2013 as Trainee and it will be completed in 23rd July 2017 due to below caluse mentioned in bond.

"In consideration of the company providing the Trainee an apportunity to be engaged in the customer project from time to time and acquire/learn technical skills in releation to the cuatomer project, the Trainee hereby irrevocably undertakes that he/she shall takeup employment with the Company, if offered at the end of the traning period, for a period of at least 48 months from the date of offer"

And Bond break amount is 4 Lakhs.

Last year in April 2016, I got married and requested Work From Home to my project manager as my Husband and inlaws are staying in Pune and my current company don't have branch in Pune location.

I got Work From Home in Aug 2016, but after a month I was in release list.

Since, Sept 2016, I am asking for Project, but company does not have any requirement/ apportunity for the skill which I have trained.

Also, from Dec 2016, Skill Allowance is deducted from my Salary and now company is asking me to come back to report office till bond completion.

I requested my HR team, since there is no work for me from 4 months. I am unable to come back and stay at mumbai for 7 months. I got below replies from my HR team.

1- If you didnt report to office then you will be considered as absconded.

2- You have choosen to marry guy who is settled in Pune. It is your personal problem.

3- You have to pay 4 L Amt to our company either in installment. There will be no negotiation in Amount.

Right now, I am travelling for 12 hrs daily to reach office from home (i.e. Pune) and highly frustrated.

Please advise, is there any way to get out of this?

Note: Act 1956 and Act 1996 are mentioned in my Bond.

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4 Replies

Zoheb Khatri (Practicing in Mumbai ZohebKhatri@gmail.com) 16 January 2017

Act 1956 seems to Companiy Act and Act 1996 is appears to Arbitration Act.

As per clause you can complete till July, and give them Detailed Notice period in writing and make sure They Recieve, possibly you may also ask them for Acknowledgment.

For Temporary period you may seek accomodation, as 4 months only left.

Kumar Doab (FIN) 16 January 2017

The Bond is drafted on ground of Training.

It is to be seen if some real Training that added to your skill was provided.

Was any salary paid when you were in release list for 4 months?

Is the deduction of skill allownce mentioned in salary slip?

You may show the said Bond and give inputs in person to a very able counsel specializing in Labor/service matters.

You can access counsels par excellence in Pune/Mumbai.

Are you a member of IT-ITeS/employee's/trade unions?

Ritesh Maity (Labour Law Advocate) 17 January 2017

Was there any actual training provided to you during your employment so that you acquire some extra special skills? If yes, what kind of training and what was the cost of the training.

Please note that any bond to bind an employee is illegal in India. Through these bonds and agreements, company can only recover the cost of trainning if provided to you and nothing else.

What is a "release list"? Are you getting salaray right now or after some deduction.

It is better to consult a lawyer with all your documents i.e. appointment letter, bond, work from home permit, salary deduction details etc.

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Kumar Doab (FIN) 17 January 2017

Are you a member of IT-ITeS/employee's/trade unions?

Have you signed any arbitration clause also?