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Bond for trainees and employee

(Querist) 30 August 2008 This query is : Resolved 
We in our company when appoint some one as a trainee , we get a bond signed from them,

i am writing the essential clauses mentioned in the bond here , kindly tell me whether the bond is executable, kindly suggest if any of the clause is making the bond non executable in case the employee break the bond.





05. That the Trainee agrees to abide by the services rules whether during the period of his training or thereafter and other standing instructions with regard to attendance, leave, disciplinary matters and other rules as framed by Company from time to time. He shall also have to comply with such orders and instructions, which may be given to him from his superiors from time to time.

06. That the Trainee will not, at any time, whether during the continuance of this Agreement or afterwards, divulge or disclose to any person any knowledge or information which he may acquire in the course of his training period or during his employment with the Company and shall use his best endeavors to prevent the publication or disclosure thereof.

07. a. That if the Trainee leaves the Company during the training period of one year as agreed upon, then he shall be liable to pay back an amount of Rs. One Lac ( Rs.1,00,000 /- ) to the Company.

b. In case the Trainee, after completion of his training period, does not join work as a regular employee, then also he shall be liable to pay back to the Company an amount of Rs. One Lac ( Rs.1,00,000 /- ).


c. In case the Trainee joins regular work after completion of the training period, but does not complete the full period of three year’s services as agreed upon, then he shall be liable to pay back to the Company an amount of Rs. 2,00,000 /-.

d. In case the company asks the Trainee to leave the company for any other reason than given in clause 9 (a), then the Trainee shall be liable to compensation equivalent to the amount given in clause 7 (a), (b) or (c) as may be applicable at the relevant time.


e. For this purpose, it will be assumed that the Trainee has left the services of the Company if he absents himself without seeking sanctioned leaves for more than 10 days or more at a stretch.

08. That the Trainee specifically agrees that he shall not join any other firm or Company before completing the training of one year and service period of three years. He also agrees that it shall be lawful for the Company to restrain him by an order of injunction or otherwise in case he commits breach of this condition.


09. a. That if in the opinion of the management, the Trainee is negligent or inefficient in the performance of his duties or shows inadequate progress in work or is found to be otherwise unreliable or of unsober habits or immoral in conduct or should the Trainee willfully disobey orders or be in breach of this Agreement or be guilty of any misconduct or the Trainee has made any wrong declaration at the time of employment, then the management can, after giving an opportunity to explain and clear himself, terminate the training arrangements without any notice or payment of compensation in lieu of notice.
b. If the Trainee completes three years of regular service after his training period and continues in service thereafter, then all service Rules, Regulations and / or Standing Orders of the Company as may be applicable at that time will apply to him.
Guest (Expert) 30 August 2008
The conditions are fine as the document is a contract between two person capable of a contract. Both parties are fully aware of the nature of the contract and having specifically agreed to abide by the contract, one of them can challenge them in court if there is voilation.

IClause 9(a) the following words :

"inadequate progress in work or is found to be otherwise unreliable or of unsober habits or immoral in conduct "

are not in good taste as they stigmatise the candidate, which will hamper his career. I suggest you remove them and place another clause, that the Company remove an trainee without assigning any reasons.


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