What consequences happen for breaching indemnity bond ?


I am employee of a company and I've signed an indemnity bond with the company.The bond consists of 2 pages, first one is Rs 100 printed stamp with red color. Stamp paper on which there is name of the company and descripttion of bond policy and the second one is normal paper on which there are terms and conditions with name & signature of employee. I've signed 2nd page.There is no notary stamp anywhere in the bond. Is this kind of bond valid or is it considered void? Also while joining the company there were few things that were either falsely told to me or not at all told to me. I am willing to resign the company before the bond period is over. When I joined the company, I was given 3 months of notice and after that I am eligible to get experience & relieving letter. Also, the penalty defined on the bond for breaching(leaving before end of 3 months notice period) it is Gross salary of 6 months .But there were no extra time & amount spent on me for training. Please advice what can be done? & What consequences happen if i breach the bond and how can i safeguard myself from it?
 
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Employer can not bound an employee for doing the job on the basis of bond, you are free for doing job at your will.
 
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A bond contract is a recorded promise made by an employee to the employer pledging that he/she will pay a certain amount to the employer if he leaves the organization before the agreed period.  This agreement is usually made when an employee joins a new organization.

Is it a good idea to implement Employment Bond Contracts?

Asking employees to sign bond contracts has become a notorious method of decreasing attrition in organisations.  The problem, though, is that the law does not permit the legal enforcement of such contracts.  This is also common knowledge among employees. Which brings us to the crucial question – “Do employment bonds really work?”

The truth is that companies can withhold important collateral that employees on the excuse of an unfulfilled contract. These include:

Relieving letter, Full and final settlement

Employees are aware of the importance of a relieving letter which may force them to fulfill the bond period.  A handful will negotiate with their new employer, but would still prefer to avoid it if they can.
 
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U have to add ur bondate first.
 
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Advocate

The bond could be enforced throguh due process of law, not unilaterally.

 
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FIN

You have committed same error that majority of the employees commit…

Employee should consult elders of the family, competent and experienced well wishers, seasoned employee’s/trade union leaders, a very able LOCAL senior counsel of unshakable repute and integrity specializing in Labor/service matters, before signing blindly on dotted line………..

Since you have signed by your free will, you have the opportunity to employer and its attorneys in HR/personnel/Admin/legal cells to agitate and stake a claim on the basis of signed document and press the conditions of signed document that you have termed as ‘Indemnity Bond’.

 

 

There are many threads on similar query at LCI that are highly illustrated and have attachments of applicable enactments and citations/judgments……………and you can search in ‘SEARCH’ option in Forum/Experts sections, news, Articles, Files…………

 
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FIN

 

Do you have copies of job advt, job application, interview call letter, selection letter, offer letter, appointment letter…………and said document that you have termed as ‘Indemnity Bond’.

 

If you wish you may attach these in this thread.

You may erase the names, logo etc to maintain confidentiality or show these to a very able LOCAL senior counsel of unshakable repute and integrity specializing in Labor/service matters.

 

 

What are these false promises made by employer or its attorneys that you have mentioned?

Do you have any evidence of any such promises made to you and not fulfilled?  In other words any grounds that would render employer violator of its own promises/committements/rights of employee and/or T&C of Bond drafted by it  and hence unworthy of being employed with?

 

Have you documented these false promises made to you under proper acknowledgment?

 
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FIN

 

Do any of these documents mention that you will have to sign an ‘Indemnity Bond’?

Did employer issue any written communication that employee (you) have to sign an ‘Indemnity Bond’?

Did employer issue any written communication that employee (you) have to resign and submit copy of resignation /its acceptance/service certificate/relieving letter before joining?

 

Were you asked to sign and/or did you sign Bond after resigning from previous employment and after joining current employer?

 

Did employer issue and sign appointment letter with you after joining and after signing Bond or after issuing appointment letter?

 

The said Bond is crafted in lieu of what extra ordinary benefits say: some certified training from some certified Instt. That added some qualification to you or some extra ordinary skills?

What reason/logic is inserted in said Bond for crafting Bond for employee by employer?

Does employer agree to tender same/equivalent liquidated damages if IT separates by termination during period of Bond?

 

Has employer inserted notice period of 90days for employee and notice pay in lieu of notice period in appointment letter?

 

Does employer agree to tender same/equivalent notice period of 90days for employee and notice pay in lieu of notice period in appointment letter, if IT separates by termination during notice period?

 
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FIN

 

 

While posting such queries employee should post basic information!

What is this establishment; Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

 

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

 

 

Have you firmed up nay next employment and would your next employer support you and won’t terminate in case current employer or its attorneys harass you?

 

You may reply pointwise to all points, for further discussion.

 
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Originally posted by : Kumar Doab
 
While posting such queries employee should post basic information!

What is this establishment; Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

 Have you firmed up nay next employment and would your next employer support you and won’t terminate in case current employer or its attorneys harass you?

You may reply pointwise to all points, for further discussion.

 

I am unable to understand the purpose of asking such a detailed information for reply to a simple looking question of the member.

However, if asked just for the purpose of space filling at LCI that is another issue.

 

.

 

 
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