Hi All I had joined a small software firm over a 7 months back as PHP Developer after working with one small organisation for 19 months . I had signed a commitment bond for 2 year on plane print out offer letter not on bond paper. I getting many interview calls for better package. My guys are not going to hike my small salary till March 2012. I want to break this bond. Please help me guys. Is this kind of bonds are legal since i not signed on bond paper.

1. Contractual Bond
1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates. In consideration, thereof, you hereby agree that notwithstanding anything to the contrary herein, you shall not terminate your employment with the company for a period of two (2) years with effect from the date of your joining XYZ Technologies. In the event that you terminate employment with the company prior to the expiry of the aforesaid
two (2) years, you shall repay to the company immediately the sum equivalent to your monthly salary multiplied by the remaining number of months calculated as from the date of termination until the expiry of the aforesaid two-year period.

2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

2.2 You may at any time terminate this agreement after Contractual Bond period by giving in
writing to company 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.


As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate And the technology used is open source.I want to break this bond for better opportunities. Please help me.

This is nuisance that has to be tackled legally. Such sorts of terms are often misused by individuals, vested interests, boooooses, offices itself.

I want to add to this:

Quote from the earlier communique:

2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

2.2 You may at any time terminate this agreement after Contractual Bond period by giving in
writing to company 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.

Is this sort of terms valid in government offices for permanent posts? Can this be contested?

You have mentioned in your post:

A) 2. Termination of Employment; 2.1, 2.2

Employer and employee can terminate the employment on equal terms. It is not stated salary mentioned is Basic, Gross, CTC.

B) 1. Contractual Bond:” I had signed a commitment bond for 2 year on plane print out offer letter not on bond paper."

"1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates.

"As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate and the technology used is open source."

While you are still in employment you can submit gentle representations ( in writing under proper receipt with original seal and signature, which you can even obtain from desk where all post/courier/ of the company are received, followed by email, or you can submit by registered/speed post) to your appointing authority/MD/CEO, and state that since you have not provided with any training or course and you already had proper skills and expertise to carry out the duties of your employment, and you were experienced candidate and the technology used is open source, hence Contractual Bond, is void and should be cancelled.

You shall need lots of patience, persistence, negotiating ability and should remain cool and calm, and amiable. Build and maintain rapport. If you take up another employment you shall need your company, higher ups to obtain your F&F, experience certificate, relieving letter, NOC/NDC, good reference check, etc.

It is almost certain that you shall have to face sessions with your reporting authorities, higher ups, HR if any.

If you have accomplished all tasks, contributed to the company, and if you have received any appreciations, you should have all records.

If you feel that despite your level of expertise, qualification, skill, experience, you have not been awarded adequate salary, increments, perks, rise in salary compared to your colleagues, peers, you should take up the matter, in writing in gentle manner.

It is not clear whether it is stated in your contractual bond that you shall not be given any hike in salary. It shall be appropriate to show all docs and records to elders in the family, experienced and competent well wishers, your lawyer/law firm.

If your colleagues, peers have been awarded batter salary but you have not been, due to contractual bond, you should minute it under acknowledgment, in a gentle manner.

However you must minute the meetings and submit under proper acknowledgment, and build record which you should be able to prove (currently and/or later).

Looking into the trends in the industry, the company may not reply in writing.

However you should be able to gather all facts and records.

Another scenario is that you have sufficient records, data, facts, documents with you, and in case you terminate the employment, in line with terms of termination, and your company decided to take any penultimate action you should be able to defend.

@Kumar, I am also in same situation, but my bond was on Rs. 100/- bond paper. I am writing Company officials since more than 2 months with all the facts, but company is silent abt my dues. Company gave me relieving letter but not dues. No reply from HR, even MD, ED of the company. How to tackle the situation now? Shall I send letter again ? or shall I give final reminder menioning legal case ? Please advice.

Kindly visit your local service lawyer/law firm and show all documents and records.

Your lawyer/law firm shall structure the communications to be sent by you, and then to take the right legal rcourse.

I recd form 16. Company showed dues as paid in it. I told company to give revise form 16 otherwise I will complain to IT dept. Company paid me all dues immediately. But alongwith dues, company issued a letter to pay bond amount within 7 days otherwise it will take legal action. What action can Co. take ? There was 'Arbitration rule' in the bond. Can co. go for arbitrator and then legal ? Please advice.

You may consult your local lawyer and show all of your documents. Your lawyer shall advice you after examining all records.

Probably you communicated verbally to the company to pay or you shall complain to IT dept. and probably company wanted you to consider the amount as a parting gift.

You can still complain on the illegal and malpractice of the company, and proceed as per the advice of your lawyer.

Anitha has mentioned some details e.g she never received any training till date and has a comfort zone.

The terms and conditions of any ventures should be studied carefully and a legal advice should be obtained before acting in haste and signing on dotted line. Many of the companies are inclined to introduce bonds and are also being advised to get the bonds with arbitration clause signed from employees. The purpose is to get extra leverage and handle on employee. Will the company agree if employee asks the company to sign a bond drafted by his lawyer or insert a clause that arbitrator shall be appointed by him?

After all if good jobs are in scarcity, so is good manpower.

The conditions are drafted to favor the employer so that majority of the employees are deterred to proceed against the employer, even if they are exploited, and to tire the employee by lengthy processes.

In short employee has to vigilant and SMART while joining and while in  employment.

Sir, I communicated by mail first and then by speed post letter. But surprisingly, company acted immediately on mail itself and issued cheque which I was requesting since almost 7 months. Now no dues with company, but only letter which was accompaning cheque. Now I recd. relieving letter as well as dues also, still company will take any action ? does it have any validity ? please advice.

You must show all records and notice to your  lawyer for the needful to be done. It shall be better if a fitting and a stern reply is sent. After your reply company may think over the facts again and may not proceed.

If you do not reply company may proceed.

Your lawyer and your records and inputs to lawyer shall help you to defend.

Thanks Sir, I will be sending a letter to HR. A small question : What kind of action company can take ? Wll it be arbritration as mentioned in Bond or any other type ? Regards.