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vasanth (Programmer)     17 December 2012

Service bond

I would like to know about the employment service bond.

I signed a bond for 3 years work and 3 months training and 2 lacs if breaking bond in an MNC company.

I worked for 2 years(3 months training and remaining work) , after that i had a health problem due to which i absconded for more than 7 months, in this i asked for leave aproval for 1 month and then during third month i sent a mail but no reply from them. they terminated me from the company without informing to me eventhough they have my contact address. i approached to them after 8 months, they are asking to pay the bond amount and get my certificates back even after terminating me and asking me to join as a new employee if intersted with 2 years bond (have to wait till project is coming and my profile is matched). 

Please provide ur suggestions to get out from this.


 4 Replies

MADHUSUDAN G R (Advocate)     17 December 2012

You hv not mentioned what sort of ailment u had. Just because of health problem, can any one abscond (according to yr own terminology) for 7 months at a time? During 7 months time, u hv asked for leave of one month. Further, during third month u hv sent one mail. Obviously, they hv terminated. In fact, they should hv sent a mail asking u to report for duty within a specific time frame, failing which they would be constrained to take action against you, which they hv not done. In the eighth month, u hv approached. They are justified in asking for refund of bond amount. Asking for depositing the certificates is an unfair practice. Again, when u approached, they are willing take you back two years bond. On what basis? Thus mistakes are there from both sides.

Adv k . mahesh (advocate)     17 December 2012

i can understand if you really suffered with health problems but i cannot understand why you went again to that company when they terminated you

1. have deposited your certificates with them alongwith signing bond

2. you got any other job and you avoided to attend duties 

because if you have suffered with health problems then you can request the you manager to consider by showing the medical history submitted by you doctor to you and if you are interested to join the work again and then consider the 7 months as loss of pay and then tell them to consider your request and then continue you in your preious bond only


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vasanth (Programmer)     17 December 2012

i am going back to this company only because of my certificates and bond and they are asking me to join as a new employee if interested with another new 2 years bond, if not pay the bond amount to get certificates. what can i do if i have to go in an legal maner.

Kumar Doab (FIN)     17 December 2012

You may show the job advertisement, offer letter, appointment letter, standing orders of the company and bond to a competent and experienced lawyer in person and give inputs and let your lawyer evaluate the merits. The bond may in violation of standing orders of the company.

The 3 months training provided to you was in fact a training that added to your skills or qualification or you worked like a regular and normal employee? If the training was eyewash then what is the basis of enforcing a bond?

Has the company issued an acknowledgment of your certificates?

Have you signed a declaration that you are depositing your certificates with the company?

Is it a part of the statement in the bond that the employee has to deposit the certificates with the company?

Instead of absconding you could have approached the company to accept pro rated payment to relive you e.g. Rs.200000/36*9=Rs.50000 or you could have declared that company enforced bond claiming a training of…….was to be provided but has not provided any training, hence company should release from bond.

At that time you could have approached a lawyer.

Apparently company has not supplied you any communication to join duty or face action on disciplinary grounds by effective means of communication e.g. email {although your email id was on record} redg. post/ courier of repute { although your address was on record}.As per your post neither company has supplied you order of termination.

All of this is happening as the company knows that one fine day you shall comeback to get your certificates and reliving/experience letter.

Company might be denying FNF statement, FNF settlement, Form16, PF a/c slips, PF withdrawal/transfer, work experience/service certificate, relieving letter as per its internal policies. You may require obtaining some handle on the company to bring it to negotiation table. A smart lawyer may be in a position to help you. You need to build a ground for a win- win situation.

As far as your certificates are concerned you may obtain duplicate copies. Another company may employ you on the basis of your appointment letter, last salary slip, an affidavit/indemnity from you that you are not employed elsewhere.

The courts may not agree that company can have a lien on your certificates.

In case of termination also company should issue you service certificate as per model standing orders.

You may find the attachments useful.

Visit a competent and experienced lawyer as ap.


Attached File : 822928640 417759075 validity of employment bonds.pdf downloaded: 138 times
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