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Legality of service bonds

Querist : Anonymous (Querist) 10 September 2010 This query is : Resolved 
Hi Friends,

I used to work with a MNC BPO company in Delhi since January 2007. In Feb 2007, the company sent me along with some other people to U.K. for 8 weeks for some on job training (as they call it) on our client's site to gain the process (business) knowledge so that I can perform the same work at our Delhi based office.

Before sending me to U.K. they made me sign a service bond for 2 years with a value of Rs. 2 Lacs.The service bond copy is attached with this query.The terms of the bond is that I will have to continue to serve the company for two years after I return from U.K. I had already completed 16 months of this bond period. The only bond period left was just 8 months. Further please note that the work which I used to do in Delhi is now being performed by some other employee who was trained by me for good two to three months. She was independently handling the job and the business was also running smoothly at the time when I got myself transferred to Kolkata. Hence my manager in Delhi also agreed to release me as I properly trained a new employee on my existing job. Later on I got myself transferred to our Kolkata office where I was waiting for my new assignment to begin.

In this meanwhile I got a very good opportunity in some other company offering me day shifts and I accepted to join them. Before joining I also told them regarding my bond issue but they accepted a copy of my resignation e-mail as a proof of resigning from my previous company.

Accordingly I resigned from my previous company after serving proper notice period and had requested my manager to waive the bond amount but the HR told me that they will not waive the amount which amounts to Rs. 1 Lac. Now they have sent me a letter through a Lawyer demanding Rs.90,448.00 which I am unable/unwilling to pay. What can happen if the company files a legal case against me? Please advise whether I am in a position where I can defend any legal case which the company can file against me?"

“Here it is to be noted that when I joined my previous company, I was having a work experience of 4 years for which I also have a work experience certificate. There was no such training given to me in U.K. We only used to sit beside our U.K. colleagues and used to see the work they do. Later on we started doing the same work from our Delhi office. Also given the fact I trained a new employee for complete three months in Delhi before taking a transfer to Kolkata signifies that the company did not suffer any losses which they are claiming now. In Kolkata, I was on bench and was waiting for my new assignment to begin and that is when I resigned after serving proper notice period”

So friends based on above facts can you please guide me as to where do I stand if any legal case is initiated against me by my ex employer?

The Service bond copy is attached.
s.subramanian (Expert) 11 September 2010
You are bound by the service agreement since the same is legally enforceable. It is better for you to either settle the matter by negotiations or pay the same to your erstwhile employer.
Querist : Anonymous (Querist) 12 September 2010
Dear Sir,

Thanks for your feedback. I just needed to know whether you have considered the facts which I mentioned in my query (in the second last paragraph).

Also I am ready to settle the matter out of court and the maximum I can pay is Rs. 30000.00. Please advice what will happen if they do not agree to my proposal.

thanks and regards.


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