sanjeev kumar (IT) 25 January 2011

Bond breaking

I have join a IT company in mumbai and company has ask me to sign 1 yr
bond of 1 lac amount and i have work only 1 week but due my medical
condition is not good so i have left the job without informing them so
i want know that what possible step will company take and what
should i do in this case.

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2 Replies

namrata patil (article) 28 January 2011

It is not as easy as one thinks of breaking bond .There are serious consequences which will happen without our knowledge.

Because it is more favoring the Employer .This is because of the legal route adopted by the Employers for enforcement of the Bond ,Employers go through the process of Arbitration and get an award very many times exparte i.e in the employees absence .The advantage for Employers is because the Employees are reluctant to part with their address and the Employer goes for service of notice on the old address and gets the verdict from the Arbitrator in their favor.The scope of the appellate process against such awards is very limited and the award by the Arbitrator is confirmed.The instances of Employees resisting such claims is minimal.Once the Employer gets the verdict the time for enforcement is 12 years.

Therefore it is better to plead to your employer to relieve you from the obligations of the Bond by sending an “Escalation Letter "to the Higher up than your HR Head say if it is an MNC to the HQ.It may sometimes work.In case this also does not work out you can send a “Frustration Letter” for the record.In case there is legal case this letter may help.For getting the letters you need to take legal help on your specific facts.

The other option exposed by case law on enforcement on negative covenants is where the Employer is forced to terminate the Employee instead of the employee resigning . This option needs to be exercised and dealt with great care as you might have other issues cropping up. .If there is termination then the Bond cannot be enforced.

"Also creating an Employees Forum with an All India Network to provide Legal Assistance at nominal cost to defend Bond cases on the Employees side can be a solution.This can match the legal strength of the Employees."

Ref. :- VS Rajan Associates.

more at https://www.citehr.com/275647-job-bond-breaking.html#ixzz1CJ18oDJI

Maddy.Nilesh (Software Engineer) 05 February 2011

Hi Namrata,

I am facing somewhat same issue. I was working in an MNC and while joining they have asked me sign the bond of 2 lakh rupees which they called a training bond. Also before joining I was having the experience of 1.8 years but they informed me that I will be considered as a fresher. The bond period was of 2 years. And due to recession I agreed on signing the bond. They have asked me to work on as a trainee for 3 months and during these three months they haven't provided me any training as such. I have been given few documents to read which are free on some website.

After a year due to family emergencies I have requested them to relieve me. And I have resigned. They asked me to pay the bond amount and also to serve the notice period of 3 months. I have served the notice of 2.5 months and informed them that I can't pay the bond. My performance till the day I left was 100%.

I have handed over all the company assets to my manager before leaving. Now company have considered me absconded even after serving the notice of 2.5 months and also they are asking to pay me the bond to get my relieving letter and they are ready to take the absconding letter back.

I need help on this as I will not be able to pay this much amount.

Please help!

Maddy