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Abhilash K (Accounts Officer)     11 September 2011

Validity of employment bond

Dear all,

Herewith I am attaching a model of security bond. Kindly help me regarding following points

1. Is this bond legally enforceable?

2. Is this bond one sided or two sided?

3. If I leave the job during the bond period, am I suppose to pay the amount mentioned in the bond?

Expecting your advise soon.

Thanks 



Learning

 7 Replies

Kumar Doab (FIN)     11 September 2011

You have signed the bond and stated that,We have signed this Bond after fully understanding the contents of this Bond, and provided surety. The company has all the right in raising a claim based on the bond.

The statements in the bond :

“bound to remain in the service of Company for a period of 3 years from the date of demand. Also bound to keep and maintain all papers, documents and the equipments and other properties belonging to the Employer and holding the technology, confidential information, copy rights, patents and other intellectual properties to the Employer in strict and also comply with the conditions in the contract appointment.”

And

 

“considering the expenses for a selection process, loss of services of an experienced and qualified personnel etc.”

 

And

“the condition of the above written obligation is such that in the event of the employee being resigning from the service of company or in the event of his dismissal or removal from service for the commission of any misconduct or on his abandoning the service with in a period of 3 years from the date of joining the services of Company

are one sided.

The company has gone to the extent of adding that even in the case of dismissal or removal or abandoning the service the employee and surety are bound to pay the amount+interests etc. The dismissal or removal is a process and show cause notice/enquiry and fair opportunity/natural justice should be made available to the employee. The company has used the term " abandoning the service" which usually refer to absconding without proper information/approval to company and company has left the interpretation of the term to itself and  refrained from using the term resignation.

The amounts expressed towards the expenses for a selection process are highly inflated. One shall be surprised the amounts expressed are towards the selection for a national team or an individual?

If the company raises a claim you can contest the claim and bond. It shall be appropriate to transact everything under the advice of elders/competent and experienced well wishers, and a law firm/lawyer.

You should remain careful and do not leave room for charging you for any kind of loss to company.

If the employee does not commit blunder, usually it is employee who gets the relief.

 

1 Like

Abhilash K (Accounts Officer)     12 September 2011

Thanks for your reply sir.

I just want to know, if I leave the company before the bond period by providing proper notice, is the company eligible to raise a claim against me. If raised to what extend they can claim?

Kumar Doab (FIN)     12 September 2011

If company decides to claim, they shall send a notice/legal notice and raise claim as per the bond.

You can avail the services of a competent and experienced lawyer and contest the claim.

Henceforth, kindly consult elders in the family, competent and experienced well wishers, lawyer/law firm before signing on the dotted line. In the long run it is beneficial to have access to a competent lawyer.

sakthithasan (DE)     03 October 2011

Dear Sir,

I have a major problem of employment service bond that is troubling me. I went through some posts you replied in the forum and I feel like, that you can provide me a possible solution.

  I have joined HCL company on Oct,2010 and signed a bond for Rs.124000. After signing the bond, the company changed the designation from "Mechanical Engg Dept" to "Construction Dept" after a period of 1 week from joining.

  After coming to know these issues, I discussed with the HR about my health condition and inability to continue thereaftere.I stayed with the company for just 7 days only. And after that I left the company.

   And after a gap of one year , I got a notice from the layer , asking me to pay the bond amount. The important thing is, the letter is mentioining as, I have worked there for 3 months from October to December. But I didn't received neither the salary for 3 months nor there is any record of my attendance.

And it is a one sided bond.

Please advise me on this issue.

Thanks

Kumar Doab (FIN)     03 October 2011

Did you submit resignation letter mention any reason or protest?

Did you submit the minutes of discussion with HR?

DI you receive any show cause notice/notice or legal notice from company and if so did you reply?

Company might have recorded in your personnel file that you have absconded/abandoned the employment and might have invoked the concerned clause in service bond.

It shall be appropriate to consult  local service lawyer and show all your docs including appointment letter, bond, notices etc and reply to the notice with facts and call the bluff of the company.

Kindly understand, It is wrong on your part to accept the employment, blindly sign the bond, without understanding the implications and without seeking advice, and then leaving the company after 7 days. Companies and the responsible employee in HR/Admin/legal cell/line management are also answerable and if these kinds of episode keep on happening company shall loose control and shall not be able to ensure discipline, and function properly.

 

sakthithasan (DE)     04 October 2011

Thanks for the early reply Sir,
 
For the questions you have asked,
 
    Did you submit resignation letter mention any reason or protest?
 
     :-  I sent an e-mail immediately after discussing with the HR personally on that issue on that month itself.
 
   Did you submit the minutes of discussion with HR?
 
     :-  Yes Sir, It has been submitted to them clearly mentioning each and every issue.
 
   Did you receive any show cause notice/notice or legal notice from company and if so did you reply?
 
     :-  I received a show cause notice from the company. After that, my guarantor went to the Noida Office and discussed personally  with the official people who sent the notice.
 
         The person in charge mentioned to my guarantor that,  I will be getting a legal notice from lawyer after 1 or 2 months ( which I received recently ) and informed that there is no need to worry about the notice.
 
 
My doubt is,  Is it fine to rely on the statement given by the official person and leave as it is?  or Do I need to take any immediate action with the help of lawyer?
 
And at worst case scenario, What are the actions needed to be taken so that my guarantor will not be affected in any situation?   
 
Thanks

Nithin (Engineer)     06 April 2012

Dear sir,

    Im an Engineer. I joined in the organization as Graduate Engineer Trainee. At the time of joining they made me to sign a bond for 3 years and having a bond breaking amount of 6 lakhs. They have given me a one year training regarding the company products and regarding my job. I have submitted all my certificates to the company..Now 1.5 years are over and I want to change my job profile.

I ould like

 to know whether this bond is legally valid or not.


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