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Iman Kalyan (IT Engineer)     19 May 2012

Breaking company bond

Hello everybody,

                            myself Iman from Kolkata. I recently joined in a IT company which has a bond of 15 months and if I break the bond I have pay Rs. 50,000. And the first 3 months was unpaid training. I just worked there for 1 day and leave the company without informing them. Firstly they tried to contact with me through mail or phone but I didn't reply intensionally. After 1.5 months they are sending mail again saying that they will take legal action against me. In this condition I met with the company business manager and told him that due to some family problem I couldn't continue the job. Then they asked me the bond amount as per the contract but I told them that I am unable to bear the bond amount i.e Rs. 50,000, I can only afford Rs. 10,000. They told me to write an application regarding this and said me that they will decide the matter in board of directors meeting. One thing I just want to mention that the contract was not signed in any court/stamp paper, it was only signed in the offer/appointment letter. My question is that if company doesn't agree with my proposal then I have to pay the full amount which I didn't want to pay. What can I do in this critical situation? I look forward for your valuable replies.

 

Thanking you in advance.

 

Iman Kalyan   



Learning

 11 Replies

Kumar Doab (FIN)     19 May 2012

Please clarify:

-You have worked for only 1 day in the company or 1 day after training period of 3 months.

-What do you mean by unpaid training; you were not paid any remuneration during training of 3 months or you were not supposed to pay for this training?

You have posted that "They told me to write an application regarding this and said me that they will decide the matter in board of directors meeting." Did you submit this letter? It is felt that you have been tricked.
One should always consult elders in the family. Experienced and competent well wishers, trained legal mind, lawyer/law firm before acting in haste/before signing on the dotted line. It is better to consult beforehand than to repent later.

In your trade i.e. IT, almost all employers shall ask for bond/service agreement/non compete clause/non disclosure agreement etc, and HR is bound by rules of the company and to justify their job they shall chase the employee. You shall come across employers who are smart, clever, and do not mind to step on the toes.

It shall be appropriate to be careful and consult before you act.

1 Like

Ajit Singh Cheema (practising Advocate)     19 May 2012

I would like to bring in to your kind notice that under section 35 of The Indian Stamp Act," Instrument not duly stamped is inadmissible in evidence". As stated by you the bond given by you is not duly stamped.

1 Like

Iman Kalyan (IT Engineer)     20 May 2012

I leaved the company after the 1st day of my joining. They gave me the appointment letter on 26/03/2012 and I joined the company on 27/03/2012. After that very day I was absent from the company since now without informing them. The first 3 month was unpaid training means I have to work for the first 3 months without any salary. Now they saying that they will take legal action against me. Yesterday I went to the company and met with one of the director. He gave two option for me. 1) I can join the company again and they will give stipend from the first month but I didn't want to join this company. 2) I can terminate my service paying Rs. 50,000 as per the contract. But I told them that I cant afford this much, I can only afford Rs. 10,000. Then they told me to write an application regarding the proposal of mine and they will decide the matter in the board of directors meeting. If they agree with my proposal that is fine, I am ready to pay that amount. But in case they doesn't agree with me and demand for the full amount then what should I do? Can they take legal action against me? Please help me out.

Iman Kalyan (IT Engineer)     20 May 2012

Originally posted by :Iman Kalyan
"
I left the company after the 1st day of my joining. They gave me the appointment letter on 26/03/2012 and I joined the company on 27/03/2012. After that very day I was absent from the company since now without informing them. The first 3 month was unpaid training means I have to work for the first 3 months without any salary. Now they saying that they will take legal action against me. Yesterday I went to the company and met with one of the director. He gave two option for me. 1) I can join the company again and they will give stipend from the first month but I didn't want to join this company. 2) I can terminate my service paying Rs. 50,000 as per the contract. But I told them that I cant afford this much, I can only afford Rs. 10,000. Then they told me to write an application regarding the proposal of mine and they will decide the matter in the board of directors meeting. If they agree with my proposal that is fine, I am ready to pay that amount. But in case they doesn't agree with me and demand for the full amount then what should I do? Can they take legal action against me? Please help me out.
"

Kumar Doab (FIN)     20 May 2012

You have posted that:

--"The first 3 month was unpaid training means I have to work for the first 3 months without any salary."

 

As per the minimum wages act, a minimum compensation should be paid to one and all including trainee/apprentice/probationer.

Engaging an employee for work without compensation is an offense. The offer letter issued to you should be treated as bad in eyes of law. It should not have any legal binding on you.

If this company has written in the appointment letter in direct or implied language that you shall not be paid any wages/stipend during training the company is engaging into malpractice, acts like slavery.

You may reply in writing under acknowledgment that the company forced you to sign appointment letter on illegal terms of appointment i.e. you shall have to work without any stipend/salary and they ( mention names designation department address) applied pressure, coercion, threats on dated……….and dated……to extract a letter stating ………….

You may report the matter to O/o Labor Commissioner, Wages Inspector, and Chief Inspector under SE act applicable to your state, even police, registrar of companies and appeal to cancell the registration. In your city/state trade unions are quite strong. You can report the matter to them also.

This company and promoters and HR are not fit to be left unpunished. You may lodge a complaint and let them meet their fate.


It is felt that notice period is not applicable to trainee.

You may mention that it is precisely the reason you informed your superiors on the very same day of your joining that you shall not work with the company and you were allowed to leave.

Let the company reply whatever they want in writing. Your lawyer shall take care of the matter if the company replies. Next time you meet them record the transactions ( audio/visual).

 

It is felt that you are not consulting your elders in the family, competent and experienced well wishers, or any trained legal brain, and you are acting on your own.

Adopt  the habit of consulting before acting in haste.

1 Like

S Jadhav 98336 98330 (Jadhav & Associates)     21 May 2012

You dont have to worry about anything. There is no proper bond.

Just ignore the company and its emails and other communications. If they do give you a legal notice through lawyers which I dont think they will do, then you worry about it as they are on the losing side.

No one can bind someone to a bond of such nature for doing nothing.

Just ignore the company.

S Jadhav

1 Like

Iman Kalyan (IT Engineer)     21 May 2012

If they dont send any legal notice through lawyers its ok. But what about my written agreement in which I have told them that I can afford 10,000/-  instead of 50,000/- in lieu of breaking the bond? If they agree with my proposal can I ignore that one also? Please suggest. 

Kumar Doab (FIN)     21 May 2012

You may withdraw your letter in writing.

You may reiterate that the letter was extracted under coercion,pressure,within the premises/walls of office of the comapny.

So much has been provided in this thread on your legal rights.It shall be sad if you pay even a penny/paisa to this comapny.

If you are bogged down by your presumptions you may approach your lawyer and let your lawyer write to the company.

1 Like

S Jadhav 98336 98330 (Jadhav & Associates)     21 May 2012

Yes in myview you can ignore that too.

S Jadhav

1 Like

Iman Kalyan (IT Engineer)     18 June 2012

The company denied my proposal. They are demanding Rs. 25,000/- instead of Rs. 50,000/- in lieu of breaking the bond. They called me by phone and said that if I dont pay that amount they will take legal action. I told them that I will pay the amount in 4 installment. They agreed with my condition. But I dont want to pay any money. After that they called me again but now I am not receiving their phone calls. Now they are sending message saying that this is my last chance, they are ready to take legal action. Now what should be my next step? If they produce court order, will I be in jeopardy ?  If this happens, I know that my career will be in danger because I have just started my service. I am really blind about this kind of situation. Please help me out.

S Jadhav 98336 98330 (Jadhav & Associates)     20 June 2012

Please ignore the company and its threats. Do you really fee that they will fight a case for such an amount especially when they know that the bond is not binding.


S Jadhav

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