LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

nisha (manager)     11 May 2012

Bond signed for 5 lacs


I have been working for a Bank, where in I was asked to join a training program (mandatorily) . During the traning program we were asked to sign a bond which states that i need to render service for 1 year + notce period of 3 months. If still i need to quit, then i need to pay Rs 5 lakhs

I was recruited as a operations manager, but am forced to do sales.. targets are set on each branch and we are torchured every alternate day for meeting the targets.

i have no experience of sales, and even after trying , am not able to do sales and hence i have decided to quit this job. But the HR is not allowing me to resign, unless i pay 5 lacs. Infact they said i can go absconding.

Am still sending a resignation letter via office e-mail ID to Branch manager and HR.

Please help me understand, what will be the implications of the above, whether i will be dragged to court?


 5 Replies

H. S. Thukral (Lawyer)     11 May 2012

As far as dragging you to court  the answer is yes, whether the employer succeeds in its claim or not. The chances are that court may award damages to the employer which may go maximum up to 5 lacs. the employer has to prove that he suffered damages to that extent in breach of contract by you. 

If you turn the table and let the bank terminate you then you are absolved of the liability. Insist and Write to the bank that you should be assigned duties commensurate with the job of Operation Manager. 

1 Like

Anjuru Chandra Sekhar (Advocate )     11 May 2012

Any employment contract (bond) which restrains anyone from practising a lawful profession, trade or business of any kind, is to that extent void. (Sec.27 Indian Contract Act).  So your employer cannot have any claim on you if you quit your job.  However nothing prevents him from going to court, if he wants but he also knows, that he cannot win.  And in your case, I do not know whether you have completed Training period or not, but if you are still in Training period, it appears that your employer is using you to do normal duties of a regular employee rather than training you.  Sometimes, Employers could get relief from courts to the extent of Training expenses incurred on the employee.  However in your case as it appears that you are performing the role of a regular employee, which is evident from the fact that you are given the designation of Operations Manager (not Trainee or Management Trainee) and from the fact that Sales target is set for you.  I do not think that is Training.  Hence you need not pay a single rupee to him if you quit.  Keep all the correspondence, documents that you made with him and all the letters, official correspondence in documents form in a separate file with you to defend yourself in case he files any case in court.

1 Like

Kumar Doab (FIN)     11 May 2012

Mr. Thukral, Mr Chandrasekhar have given valuable advice. Kindly follow it.

You may not resign. You must not abscond. The HR personnel are misguiding you to fall in legal traps.

Rather you may build written record in your favor. You may forward all emails, files that may be useful.

You must document each and everything. In your appointment letter the job profile, KRA's of Manager-Operations must have been described. You may obtain copy of Certified Standing orders ( to be displayed at entrance) which may be kept at HR page of the employee portal, and also employee rule book of the company pertaining to your designation. These are to be circulated to the employee. If these are not made accessible you may write to your appointing authority, with a copy to Head-HR., to supply these to you say within next 7 days in office, and mention that you shall issue acknowledgment of these, on receipt which may be filed in your personnel file.

If sales targets have been assigned to you, you may take out the soft and hard copies of the emails, files, and retain all SMS also, stinkers, PPT's, presentations etc. pertaining to tgt. vs. performance.

While you write to the bank that you should be assigned duties commensurate with the job of Operation Manager, you may narrate each episode of thrashing, rude conduct, stinkers, meeting, which have happened on assignment of target, intimidation, coercion, pressure, exercised on you and conclude that you applied for operations portfolio, and not for sales and you were not recruited for sales however you are being coerced to sell to all your near and dear ones, walk in clients, and rope in your entire social circle.

You may record (audio/visual) all episodes of tortuous conduct of superiors. These may come handy and useful at appropriate time in appropriate forum.

If you have been coerced or forced to indulge in misselling, you may mention it.

It is to be ascertained what kind of training is mentioned in bond? Is it related to products and processes of the bank? If it bank is duty bound to provide it free. Who else shall train the employee on product, processes, marketing, sales strategies, rules etc of the bank? Is this training worth Rs.5 Lac/person? Has the bank or any institute hired by bank issued any training completion certificate?

Moreover the bond for the so called training was introduced after you were inducted in employment leaving no other option but to sign it. Did the bank mention in its advertisement, offer letter, appointment letter, that candidate shall have to undergo training and sign bond? You can allege coercion.

If you have already sent resignation you may submit a carefully structured communication, under acknowledgment, to suit you. It shall be appropriate to approach a competent and experienced service lawyer with all records and let the lawyer draft your representations. Your carefully structured representation shall help you to establish that employer had become unworthy of being employed with and bond was being used as a dagger to subdue the employee to submit to excesses at workplace which were of unbearable nature.


1 Like

nisha (manager)     28 May 2012

Thank you all for guiding me, but I have already resigned. Had sent an e-mail with my resignation letter to my immediate boss, super boss and HR. To that mail, i got a reply stating to join as the resignation letter cannot be accepted.

Now i have also received a letter, stating i will be considerd absconding if not joined back with immediate effect.

As i understand the absconding process is to send 3 letters and alas terminate the employee. Please confirm my understanding. If so, still 5 lac bond will be applicable on  a terminated employee?

Considering all the above, is there any other precautionary step that should be taken to avoid any adverse repurcations in future.

Kumar Doab (FIN)     28 May 2012

You may show the copy of the bond and all letters, emails etc to your lawyer. Bank might have covered the situation of employee being declared absconding and terminated thereafter. Your lawyer may advice to reply and can structure your reply to suit you in the long run.

You can also post a copy in this thread. You may erase the names etc to maintain the confidentiality.

As already advised by the learned experts/members retain the copy of all record and communications carefully in your personal file at home. These shall come handy at appropriate time in appropriate forum.

From the trend it seems bank shall certainly conclude that you have absconded and shall terminate and stake claim for bond amount. It shall be appropriate to retain a lawyer at this stage itself.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads