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rahul   14 April 2017

Is employee bond is legal in india? how to break this bond?

I am Rahul. I joined one private company in Delhi last year as a manager. At the time of joining I signed 3 years bond (100 Rs. Bond paper). After I joined I feel I worked like a slave. So I decided to leave the company.  I worked a year and finally I decide to give resignation without getting any other job.

Within one month of resignation they accept my resignation and they asked me for balance bond amount (2.5Lacs). I asked about my 3 month notice period. They told me you don’t want to serve here tomorrow onwards. So company decided to waived off your notice period amount and you don’t need to pay your notice period amount but you should pay the balance bond amount.

If you are not paying balance bond amount within 2 months, company will send a legal notice and company will take legal action against you. Pay your balance bond amount and get your previous company experience certificate (My previous company original experience certificate had taken by this company in the day of joining) & this company experience certificate. And they told they will give relieving letter with bad remarks.

My problem is I never faced any police & court cases etc., If they sent legal notice what I do. Really I don’t have that much of money. Even I don’t have a job right now. Actually this is the problem I can’t search job now. Totally I disappointed. Sometimes I think to commit suicide.  

1) Every week 4 hours I attend the training along with all other staffs in company training hall. This is compulsory for all staff. Every time any one of company manager conducts training. Sometimes outside persons came to give training. Somebody told based on this training, company will file case against you. This is my big confusion.

2) I am not a confirmed staff. In the time of confirmation I decided to resign.

3) There is no foreign trip provided for me for official work.

4) I have not attended training in outside. In-house training only attended.

5) Totally I got a salary amount around 4Lacs from this company.

My question is, Is it possible to file case against me. If I failed to pay money what will happen? What is the way to come out from this situation? My mind is totally blocked. Is it possible to hide me and my family in my full life from this company? I can’t search other job freely. My family persons are totally in fear. My financial situations are very bad right now. I need good solution. So kindly please give best solution. 



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 14 Replies

Kumar Doab (FIN)     14 April 2017

There are many illustared threads with citations on similar query that you can search in “SEARCH” option in both Forum/experts sections at LCI, and pick up relevant points.

 

The training that is required to be imparted to enable the employee to handle counters of employer, should ideally be withot any cost to employee?

 

Some training might be compulsory on some establishments as per regulators e.g; Insurance!

 

What was in your case; is to be ascertained and clarified by you.

 

If you have signed the said Bond, by your free will then the employer can press the T&C signed and accepted by you and issue said legal notice. 

Kumar Doab (FIN)     14 April 2017

Employe should consult elders of the family, competent and experienced well wishers, employee’s/trade unions leaders, counsel specializing in labor/service matters…………………………..before signing on dotted line.

 

While in employment you could have built irrefutable written record/evidence of alleged slavery and thus have some ground to establish that employer was unworthy of being employed with and/or violator of rights!

 

Employee should conduct proper survey on establishment that employee wants to join before applying and joining.

The employee should become part of employee’s forums/unions and be properly informed.

Why should employee agree for such penultimate clauses and conditions like: depositing original certificates (Experience as in your case and/or educational qualification certificate) etc ………..?

Kumar Doab (FIN)     14 April 2017

 

Has company issued any demand in writing to deposit your original certificate and to sign the said Bond: If yes do you have a copy?

Has company issued any acknowledgment of original certificate collected from you: If yes do you have a copy?

 

Do you have certified copy of said Bond?

Do you have copy of job advertisement, job application, interview call letter, selection letter, offer letter, appointment letter, all rules/policies/service conditions etc cited and mentioned in appointment letter?

Is it stated that before and/or upon joining or after joining you will have to sign said Bond?

 

Has the employer stated in writing that your notice of resignation is accepted before expiry of notice period and you do not need to attend to ofcie w.e.f dated:…………………………?

Ideally if employer has accepted resignation expiry of notice period it should tender notice pay.

 

Kumar Doab (FIN)     14 April 2017

You may show all docs and records to a very able counsel specializing in Labor/service matters at your location and understand the defects in approach of employer , employee , merits andoptions and  strategy to handle the matters if employer decides to issue legal notice and pull you to court of law.

 

Before that if you can handle the matters with your own skills, OR with support of unions, authorities in Dept. of Labor (if you are covered by enactments applicable to establishment, employer, and employee), counsel specializing in Labor/service matters at your location and resolve without litigation ……………………….go ahead.  

 

In case litigation happens you have the option to appear as PIP or represented by unions or counsel specializing in Labor/service matters at your location.

rahul   14 April 2017

In the time of interview they didn't tell about bond. After the interview I received mail copy of appointment letter without management signature. In that 3 years bond is mentioned. After I called to HR and I asked about bond, he told it is not a problem & it will not affect your future. They did not give signed appointment order also. After I joined, I asked about appointment order, they gave bond to me and they told me sign your bond and get your appointment order. So I signed bond and 7 days later I got signed appointment order. But in the time of reliving, they told that you are signed bond with free will.

They didn't pay even last 15 days worked salary and I asked to serve about my notice period. But they refused and they told don't need to work here. That’s why waived off your noticed period amount. They didn't pay any amount. They ask only money from me. Finally I told them, I don't want my previous company experience certificate and present company experience certificate. Just leave me. But they told, you should pay your bond amount otherwise I will send legal notice. In the day of reliving they gave me the management acceptance letter of my resignation. They asked me to sign the received copy of that letter Xerox for their reference. But I didn’t sign. I got no due signature from all the department and I gave to HR. But he asked to sign bond amount calculation sheet and sign the management acceptance letter Xerox copy. They forced to get signature of that Xerox copy of that letter. But I refused. Next day they came to my home and try to get signature on that letter. I full of fear, so I escape from home. But it was arranged by HR department only. Top management didn’t know that matter. I called to HR management, he told that to sign that letter with received signature (or) just write not accepted and sign that Xerox copy. But I didn’t do that. So he told that you are not relived fully. It will create problem again. Till date that letter with me and that letter is not a bond paper, its simple black and white print letter with their signature. But why HR forced to get signature I don’t know. In that letter they mentioned my last day of duty, paying balance bond amount, notice period amount waived off, If I fail they send legal notice etc., 

rahul   14 April 2017

Originally posted by : Kumar Doab
 

Has company issued any demand in writing to deposit your original certificate and to sign the said Bond: If yes do you have a copy?

Has company issued any acknowledgment of original certificate collected from you: If yes do you have a copy?

 

Do you have certified copy of said Bond?

Do you have copy of job advertisement, job application, interview call letter, selection letter, offer letter, appointment letter, all rules/policies/service conditions etc cited and mentioned in appointment letter?

Is it stated that before and/or upon joining or after joining you will have to sign said Bond?

 

Has the employer stated in writing that your notice of resignation is accepted before expiry of notice period and you do not need to attend to ofcie w.e.f dated:…………………………?

Ideally if employer has accepted resignation expiry of notice period it should tender notice pay.

 

In the time of interview they didn't tell about bond. After the interview I received mail copy of appointment letter without management signature. In that 3 years bond is mentioned. After I called to HR and I asked about bond, he told it is not a problem & it will not affect your future. They did not give signed appointment order also. After I joined, I asked about appointment order, they gave bond to me and they told me sign your bond and get your appointment order. So I signed bond and 7 days later I got signed appointment order. But in the time of reliving, they told that you are signed bond with free will.

They didn't pay even last 15 days worked salary and I asked to serve about my notice period. But they refused and they told don't need to work here. That’s why waived off your noticed period amount. They didn't pay any amount. They ask only money from me. Finally I told them, I don't want my previous company experience certificate and present company experience certificate. Just leave me. But they told, you should pay your bond amount otherwise I will send legal notice. In the day of reliving they gave me the management acceptance letter of my resignation. They asked me to sign the received copy of that letter Xerox for their reference. But I didn’t sign. I got no due signature from all the department and I gave to HR. But he asked to sign bond amount calculation sheet and sign the management acceptance letter Xerox copy. They forced to get signature of that Xerox copy of that letter. But I refused. Next day they came to my home and try to get signature on that letter. I full of fear, so I escape from home. But it was arranged by HR department only. Top management didn’t know that matter. I called to HR management, he told that to sign that letter with received signature (or) just write not accepted and sign that Xerox copy. But I didn’t do that. So he told that you are not relived fully. It will create problem again. Till date that letter with me and that letter is not a bond paper, its simple black and white print letter with their signature. But why HR forced to get signature I don’t know. In that letter they mentioned my last day of duty, paying balance bond amount, notice period amount waived off, If I fail they send legal notice etc., 

Kumar Doab (FIN)     14 April 2017

Apparently soft copy of the appointment letter was supplied to you before joining and is same as that of hard copy signed by you after joining.

You could have refused to join due to condition of Bond.

Kumar Doab (FIN)     14 April 2017

Notice pay waiver: You are confusing. Notice pay waiver is in case you request towaive off notice period. On the contrary, you had told (verbally) HR person that you want to serve notice period. As per your post HR person told (verbally) you that you don’t need to serve notice period and notice period is waived off.

Probably you have not minuted it in writing and stopped attending office. You should have minuted it.

So notice period is waived off by HR (verbally). In that case ideally company should tender notice pay to you.

Rest: relate with service conditions narrated in appointment letter, issued to you and signed by you.

 

If good offices of appointing authority, MD, CEO are not aware of anything then try to get relief from good offices.

Kumar Doab (FIN)     14 April 2017

If the Bond was created on some certified training that would add to your qualification or some exceptional skills and NO such training was provided then it might get termed as unconscionable, unreasonable, void.

 

Handle the matter with your own skills or lean on employee’s/forums/ unions or a very able Local counsel specializing in labor/service matters.Share reply to the points that you have not answered in this thread and your own counsels at your location  may want from you.

So far NO lergal notice has been supplied to you.

You have time to find defects in approach of HR person/employer and prepare your defense and find another job.

Develop good rapport with next employer and its Line Managers, HR personnel, so that they support you. 

rahul   15 April 2017

Originally posted by : Kumar Doab
Notice pay waiver: You are confusing. Notice pay waiver is in case you request towaive off notice period. On the contrary, you had told (verbally) HR person that you want to serve notice period. As per your post HR person told (verbally) you that you don’t need to serve notice period and notice period is waived off.

Probably you have not minuted it in writing and stopped attending office. You should have minuted it.

So notice period is waived off by HR (verbally). In that case ideally company should tender notice pay to you.

Rest: relate with service conditions narrated in appointment letter, issued to you and signed by you.

 

If good offices of appointing authority, MD, CEO are not aware of anything then try to get relief from good offices.

I have given request letter to them for wave off the bond amount. I never give request letter of notice period and that notice period amount wave off. Even I didn't mentioned and asked about my reliving date any where any time.  Management gave a letter of my resignation acceptance letter, In that they are mentioned, "The managent has accepted your resignation and you will be relieved from the services of xxxx date. Considering your family problem the management has decided to gave you time for a period of 3 months from today to pay the balance service bond and also to wavie-off the amount of notice period. We request you to immediately settle the amount so that your relieving letter can be issued, If you fail to pay back the amount on the specified time line the company shall take legal action against you.We remind you that although your employment ended on xxxx date. some of your legal oblications will continue beyond date.  In this letter signed by MD & HR. They wants to get my signature in that letter of xerox as received. But I didn't sign that. For getting signature in this letter xerox they came to my home on next day. But I didn't sign. After I resigned, I relieved on 15th day. I did not get 15 days salary also. I never mentioned in any letter about my notice period and wave off my notice period amount. They only decided. 

Yes sir, I have signed with this condition in appointment order. I am not aware of this company doing this much criminal thinking. This is the reason I am not signed anything in the day of my last working day even they are forcing to get that xerox copy of resignation acceptance letter. But I did't that. 

rahul   15 April 2017

Originally posted by : Kumar Doab
If the Bond was created on some certified training that would add to your qualification or some exceptional skills and NO such training was provided then it might get termed as unconscionable, unreasonable, void.

 

Handle the matter with your own skills or lean on employee’s/forums/ unions or a very able Local counsel specializing in labor/service matters.Share reply to the points that you have not answered in this thread and your own counsels at your location  may want from you.

So far NO lergal notice has been supplied to you.

You have time to find defects in approach of HR person/employer and prepare your defense and find another job.

Develop good rapport with next employer and its Line Managers, HR personnel, so that they support you. 

Thanks for your reply. There is no such training given for certification. every week 4 hours they conduct training for any one of topic (general / technical) within company manager (or) outside person. They get signature from all staff in attenance sheet and feed back form.

rahul   15 April 2017

Originally posted by : Kumar Doab
Apparently soft copy of the appointment letter was supplied to you before joining and is same as that of hard copy signed by you after joining.

You could have refused to join due to condition of Bond.

No sir. Appointment offer letter sent by them is totally differ from hard copy signed by them. But content is same. Hard copy having full explanation. but it is not there in mail copy (only 2 pages)

Kumar Doab (FIN)     19 April 2017

Apparently the 1st one: soft copy sent by email was offer letter and not appointment letter.

 

Kumar Doab (FIN)     19 April 2017

“They get signature from all staff in attenance sheet and feed back form.”

It is attendance, signifying you were present.

Content, intent, purpose of training; already responded.

 

Handle the matter with your own skills or lean on employee’s/forums/ unions or a very able Local counsel specializing in labor/service matters.”


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