Wednesday 23 October 2013

Bond is illegal

Any type of Employment Bonds are nothing but a private agreement between two parties which are governed by Indian Contract Act. There is nothing called Employment Bond Act etc.

Such bonds are applicable only if the company has spent money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.

i.)         As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void.
Most of the Employment Bonds are one sided.

ii.)        Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices.

In India Bond is illegal in relation to employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.

Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.

As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.

Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit and minimum punishment under this act is two years.

The Hon. Supreme Court of India and several High Courts have clearly stated in a number of cases that
no employee can be forcefully employed against his will, just because he has signed a contract with the employer and that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.

Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.

A bond merely as employee retention tool is bad in law.

I would like to add certain observations by the Court in Superintendence Co. of India v. Krishun Murgai. (AIR 1980 SC 1717):
"The drafting of a negative covenant in a contract of employment is often a matter of great difficulty. In the employment cases so far discussed, the issue has been as to the validity of the covenant operating after the end of the period of service. Restrictions on competition during that period are normally valid, and indeed may be implied by law by virtue of the servant's duty of fidelity. In such cases the restriction is generally reasonable, having regard to the interest of the employer, and does not cause any undue hardship to the employee, who will receive a wage or salary for the period in question. But if the covenant is to operate after the termination of services, or is too widely worded, the Court may refuse to enforce it. ……………At the time of the agreement, the employee may have given little thought to the restriction because of his eagerness for a job; such contracts "tempt improvident persons, for the sake of present gain, to deprive themselves of the power to make future acquisitions, and expose them to imposition and oppression."
In the above case, The respondent was employed in the appellant firm. The contract of service contained a negative covenant restricting him from joining a competitor or doing a similar business of his own. He was terminated by the company and thereafter he started a business of his own which was similar in nature to the business done by the Superintendence Company of India P Ltd.
The court had also discussed in large the matter of "leaving/ resigning and joining a competitor" which should be treated different from 'dismissing/ Discharging/ terminating from service since in the instant case the employee did not leave by himself but was terminated from service.
Conclusion
In view of the aforesaid discussions and various court decisions, the employment bond is considered to be reasonable as it is necessary to protect the interests of the employer. However, the restrains stipulated upon the employee in the said contract should be "reasonable" and "necessary" to safeguard the interests of the employer or else the validity of the bond may be questioned. The employees are always free to decide their employment and they cannot be compelled to work for any employer by enforcing the employment bond. The court can; however, issue order restricting the employment of the employee only if the said action is deemed necessary to safeguard the trade secrets/proprietary interest of the employer. In the event of breach of contract by the employee, the only remedy available to the employer is to obtain a reasonable compensation amount. The compensation amount awarded shall be based upon the actual loss incurred by the employer by such breach.

225 comments:

  1. I need Ur help Mr.Rajan .I have a signed a bond of 2 year.before that if I leave the company I has to bare the companies loss caused by training given to me which is 1 lakh.actually I want to come mumbai as my hubby is getting transferred to mumbai.so in hurry I have signed the bond.but I worked there for about only 15 days.what action they can take? Please let me know and help me is bond legal?

    ReplyDelete
    Replies
    1. Hi,

      Firstly Please check your signed document because if you have signed any JOB AGREEMENT then you are trapped because this company plays with the word as bond is illegal not the JOB AGREEMENT or SERVICE AGREEMENT, so please checked.

      Secondly you can talk to your HR and asked whether it will attract any penalty or not also refer him if required the ruling verdict of Supreme Court, am sure your HR will understand, i hope u not paid any security deposit or submitted any original document etc. so chill.. you termination will accept..

      Also i would like to share one incident that happen in my previous MNC office where one of my frnd has left the job within two years of contract period... NOTHING HAPPEN.



      Also company cant go to court as because if it goes it will be infringement of section 378 of ipc.. so dont worry...

      Delete
    2. Rajan sir ,
      I need your help . I worked under new india assurance company which has a bond for four years including probationary period of one years gross salary which will be proportionately reduced depending on the length of the service rendered .
      Again it is also mentioned that if i leave the job during probation period i have to pay the total salary withdrawn by me during the service period . Are the two statements not self contradictory ? Is it not illegal to ask all month salary because it indicates working me with no salary during the period.
      I left the job on jan 15th 2017. The company grants my resignation but ask me to pay the total salary withdrawal during the long 20 months .
      Please help me out .

      Delete
    3. Rajan sir ,
      I need your help . I worked under new india assurance company which has a bond for four years including probationary period of one years gross salary which will be proportionately reduced depending on the length of the service rendered .
      Again it is also mentioned that if i leave the job during probation period i have to pay the total salary withdrawn by me during the service period . Are the two statements not self contradictory ? Is it not illegal to ask all month salary because it indicates working me with no salary during the period.
      I left the job on jan 15th 2017. The company grants my resignation but ask me to pay the total salary withdrawal during the long 20 months .
      Please help me out .

      Delete
  2. I need Ur help Mr.Rajan .I have a signed a bond of 2 year.before that if I leave the company I has to bare the companies loss caused by training given to me which is 1 lakh.actually I want to come mumbai as my hubby is getting transferred to mumbai.so in hurry I have signed the bond.but I worked there for about only 15 days.what action they can take? Please let me know and help me is bond legal?

    ReplyDelete
  3. Hi I have singed a bond with my company for 2 years. If I will leave this company I have to pay 6 months gross salary.I got the new offer and now this organization is asking me to pay 6 months salary as bond amount.This bond is on plain paper.No training.. no bonus.... nothing provided additionally.
    Do I need to pay this amount?? They are not ready to provide the copy of bond as well as amount which I have to pay over a mail or on company latter head.
    Please suggest....

    ReplyDelete
  4. Sir i require your opiniin
    State govt corporation invites application for the post.in their advertisement they dont mentioned letter of guarantee .after written exam and interview they issue selected candidate.since it is govt job they require caste validity certificate.open candidates dont require caste validity they issue order without letter of gaurantee.in our case they issue order and letter of gaurantee on 100rs stamp paper necessary.letter of gaurantee includes if i leave the job within 3 years i have to pay my recruitment expenses or training expenses and my six month salary.i give that letter of gaurantee.they issue circular that all the persons join the corporation have to give such letter of gaurantee.
    Sir i m going to leave the job
    I require to pay corporation
    I am in probation period of 1 year .after that i will be permanant.
    Is they have right to claim letter of gaurantee

    ReplyDelete
  5. Dear sir your blog is very usefull..

    I have one doubt i signed bond for 4years. in bond mentioned company will detect the 1500 Rs for every month from my salary up to 4 years and detected money company will return back after completion of 4 years. now i am already two years completed .now i am resignation letter submitted i got better offer..6month back i went abroad for training but i did not signed any bond for training but company telling i have to pay remaining two security amount and training expenses ..i did not signed any bond for training but company tel to me training expenses to have pay ..then only they will give proper relieving letter..pls suggest what i will do next..

    ReplyDelete
    Replies
    1. Sorry boss but u need to pay the Training money because its company who has incurred expense for your training.

      Delete
  6. Hi Mr. Rajan,

    First of all thank for your precious advice through this blog.

    I am facing the similar situation, but not as grave as other as I have found out to be. I have signed a 1-year agreement with my employer, which says if I quit before a year, I will have to give 2-months' notice period. I read the agreement carefully, and there was no mention of any monetary penalty.

    After working there just for two days, I realized it is impossible for me to continue there even for a month because the Manager I was reporting, started harassing me on my work. It's like finding fault in everything I do. I have a lot of experience and had been a top performer throughout in my previous companies. My self-esteem is badly hurt, and don't want to continue even for a single day.

    The company has spent anything on me. My question is, can they still take any legal action against me? Your blog clearly states that any such one-sided agreement is illegal in India. Do I have any reason to worry. Looking forward to your reply.

    regards,

    S

    ReplyDelete
  7. I am working as Asst Administrative officer in LIC India.
    While joing, I had signed a Surety bond for Rs 2 lacs for minimum service period of 4 years.
    Now after completing 1 year of service, I wish to resign from the job, since I have got a better job.
    I would like to know that whether such a bond is legally valid and enforceable.
    Isn't such a bond VOID as per section 27 of contract act.
    Please throw some light on the issue with legal provisions and cases.

    Please reply asap.

    ReplyDelete
  8. I need Ur help Mr.Rajan .I have a signed a bond of 2 year.before that if I leave the company. before i joining i paid 30,000 rupes and the company said after 2years we will pay 54,000 with interst.so, i break the bond so , its any issue

    ReplyDelete
  9. hello Sir,
    my name is jitin kajla
    i am working as a software engg. in start up company .
    i have signed a one year bond of rs 1 lakh with the company ,but i want to leave that company, its been 4 months working here,
    so can i leave it without paying.
    please send your email id so that i can send you the softcopy of agreement and see to it whether it is legal or not..

    please sir help me ,i am in a gr8 difficulty

    ReplyDelete
  10. Hello sir

    Few Months back i started working in a private firm as a GET in the month of april . Initially i gave a bond of 4years on a company letter head , after 6 months they took a bond on a legal stamp paper (A paper which cost 20Rs which we use it for rental agreement ). As a days went on i was put into Shop floor and made me to work as a ITI person and they say that is my training, Being a BE mechanical engineer i am working in that company as a technician for nearly 10-12hours a day , some times they ask me o come on sundays also . They say there is no extra wages for my overtime working . My health is getting deteriorated day by day and i am not able to work in such harsh environment . If i Break that bond i have to pay a sum of 2.5Lakhs . Will my company issue any legal notice if i break the bond and quite .

    ReplyDelete
  11. I need your help too Mr.rajan. M working in IT firm in Chennai.. Its been 10 months since I joined.I signed bond of 2 n a half year tenure. But due to my health issue n my personal problem n work environment too m nt willing to stay in Chennai anymore... I want to resign and back to my region.. I literally frustrated and tired of being here... But couldn't find any way to move out... They took my +2 and 10th certificate during joining.. Now I want to leave.. What shall I do ? Please advise

    ReplyDelete
  12. I need your help too Mr.rajan. M working in IT firm in Chennai.. Its been 10 months since I joined.I signed bond of 2 n a half year tenure. But due to my health issue n my personal problem n work environment too m nt willing to stay in Chennai anymore... I want to resign and back to my region.. I literally frustrated and tired of being here... But couldn't find any way to move out... They took my +2 and 10th certificate during joining.. Now I want to leave.. What shall I do ? Please advise

    ReplyDelete
  13. I have signed an agreement for 2 years on the name of training, but there was a meeting in abroad. they are asking for a money of 2 lakh as per signed agreement as i have resigned from my job.

    What should i do.

    ReplyDelete
  14. I have signed an agreement for 2 years on the name of training, but there was a meeting in abroad. they are asking for a money of 2 lakh as per signed agreement as i have resigned from my job.

    What should i do.

    ReplyDelete
  15. I have signed an agreement for the 2 years employment on the name of training in abroad but there was a meeting in abroad, Now i have resigned from my job and they are asking for a money amount of Rs 2 lakh as per agreement.

    PLease suggest what should i do as they are not giving me relieving certificate

    ReplyDelete
  16. Sir i need your help, i signed 3 year bond with auto parts manufacturing company in which they mentioned that i will have to pay amount of rupees 36000 which is my 3 months salary as they have spent same amount in my training. But i wasn't provided any type of training during my serving period to company. Plus they have mentioned i will be on probation period for 3 months and after that if they find me suitable for the job they will give me confirmation letter or my probation period will continue for other 3 months, I served company for period of 5 months but they didn't gave me any confirmation letter, And there is mentioned that i can't work with auto parts manufacturing company for next 1 year of leaving.
    Now the matter is that i asked company for 15 days leave as i wished to join some skill development course but they refused my leave application, ignoring that i joined the course and i am not going to company. They sent a warning letter at my home stating that if i wish to join them i have to join immediately or else resign the job posting the amount mentioned on bond of 50 rs stamp paper. I don't want to work there anymore please help me out? What action can company take against me?

    ReplyDelete
  17. Hello,
    In my case, I have signed a bond for 15 months and the employer has one of my original marksheets. I have been in the company for 1.5 months. Please let me know how I can get out of this with minimum loss

    ReplyDelete
  18. Have you ever reead that what 368 of IPC says it states about kidnapping

    ReplyDelete
    Replies
    1. Yes buddy u r correct its talks about kidnapping (not only Kidnapping Bro), Sec 368 of IPC also talks about extortion by the threatening to file a legal suit. That's what a company dose.
      Don't just go with the Google definition, every sec of IPC has a lot.

      Delete
  19. Hello rajan sir
    Please give me some advice.i have signed a bond of 3 year and 3 lak lakhees in a MNC. Now i dont like its work culture and i decided to leave.they have not given any training to me infact in my 6 month tenure in the comany i have worked more than 4 months in live project. I just wants to know that can they take any legal action against me for breaching the bond?

    ReplyDelete
  20. If I sign the 2 years original documents bond with the employer and if I leave the job within 2 years...will I get my documents back or have to work for 2 years forcefully.

    ReplyDelete
  21. I had signed service agreement of 2 years that if I leave company before completing 2 years, I'll have to pay 50k and serve 30 days notice period. However the service agreement does not mention what happens if company policy revises. The appointment letter states that in case company policy changes New policies would be applicable. Now company policy has revised to 90 days notice period, to which company has not obtained agreement and simply issued a notice. Company is asking me to serve 90 days notice period and pay 50k. And not giving me any kind of documents to support their demand. Is it worth fighting a case. if yes under what section of IPC?

    ReplyDelete
  22. I had signed service agreement of 2 years that if I leave company before completing 2 years, I'll have to pay 50k and serve 30 days notice period. However the service agreement does not mention what happens if company policy revises. The appointment letter states that in case company policy changes New policies would be applicable. Now company policy has revised to 90 days notice period, to which company has not obtained agreement and simply issued a notice. Company is asking me to serve 90 days notice period and pay 50k. And not giving me any kind of documents to support their demand. Is it worth fighting a case. if yes under what section of IPC?

    ReplyDelete
  23. I had signed service agreement of 2 years that if I leave company before completing 2 years, I'll have to pay 50k and serve 30 days notice period. However the service agreement does not mention what happens if company policy revises. The appointment letter states that in case company policy changes New policies would be applicable. Now company policy has revised to 90 days notice period, to which company has not obtained agreement and simply issued a notice. Company is asking me to serve 90 days notice period and pay 50k. And not giving me any kind of documents to support their demand. Is it worth fighting a case. if yes under what section of IPC?

    ReplyDelete
  24. Hii,

    I worked for a Indian company. Now i want to leave the company as they are not paying salaries on time after three months every one getting there salaries. Now when i resigned from the company then the management ask me to signed a bond for two years that you will never work for any direct or indirect competitor of the company. And also this point is not mentioned in my offer letter that i have to signed a bond at the time of leaving the company.please help me out from this because they are not giving me re leaving letter & exp after before bond.
    my mail id is marif2854@gmail.com & phn number is 8375051571.
    Please advice me what to do

    ReplyDelete
  25. Hi Rajan, I need your help. Please advise me. I have signed a service agreement with my S/W company while coming to US for 2 years. If I return to India before 2 years I need to pay 10k US dollars. I want return to India now. Please advise if I have to pay 10k dollars if I go back to India.

    ReplyDelete
  26. Hi Rajan, I need your help. I signed a service agreement with S/W company for 2 years while coming to US. I need to pay 10,000 US dollars if I return to India before 2 years. Now I want to return to India. Please advise if this service agreement is legal and valid.

    ReplyDelete
    Replies
    1. Your agreement may me according to US law, if yes, then yes u need to pay.

      Delete
  27. i need your help Mr. Rajan. I have a signed a bond of 2 years And NDA of 3 years at date of termination.and actually i join competitor of my last company. so my last company had claim to me at breach of term and condition of NDA is 10 lakhs. i have experience on that field so i am working on same filed, but why are that company is jealousy????????

    ReplyDelete
  28. Sir I left my job since I want to join other company with different job profile and I don't want any document or relieving letter from my previous company.i havent serve a notice period of 30 days and now they are demanding me money for not doing that.what I should do plz tell.

    ReplyDelete
  29. Sir I left my job since I want to join other company with different job profile and I don't want any document or relieving letter from my previous company.i havent serve a notice period of 30 days and now they are demanding me money for not doing that.what I should do plz tell.

    ReplyDelete
  30. Hello sir,I have completed my first service agreement in a college for 3 years and now signed for new agreement of 3years but for part time.Gave a resignation today, which is the 18th day of my new agreement. I have also not received the 1st payment.

    My SSC certificate is with him. He said he will reply me legally. What can happen? pls let me know and guide me.

    ReplyDelete
    Replies
    1. U can file a suit for holding back personal document.

      Delete
  31. Hello Mr Raman.
    I have joined a company 2 months back and they made me sign 2 years bond and non commuting myself for two years and leaving before two years i will have two pay 8 lack Rs (40% of my total yearly pacakge) the company said they would spend al lot on my training but haven't provided any training till date and demanding unreasonable achievements in just two months of service.
    Also they mentioned I pledge my assets in lieu of this bond.
    Is this bond valid what's the repercussion if I leave before 6 months which is my probation period.
    Please advise
    Thanks
    Raman raghav

    ReplyDelete
  32. Hello Mr.Rajan,
    My company had asked me to submit a training and service agreement, to which I agreed. I received the draft format of the same, however I don't understand why I need to submit a bond paper, also it asks for one family person to sign as surety. It only talks in favor of the employer and penalty for employee, also I don't have any option to enter my date of joining the company, will this impact me in longer run.

    ReplyDelete
  33. Sir,
    I must thank you for enlightenment you are spreading through this blog. I also have a question regarding company policy.

    All the companies have the policy that, if one falls short of the notice period one should pay the basic salary for the same period. How far is this valid?

    ReplyDelete
  34. I need your help Mr.Rajan...
    i cleared banking exam(IBPS) and was awarded vijaya bank...than vijaya bank sent the joining or offer letter to report in its surat regional office where i was asked to buy a 100rs stamp paper and indemnity deed was formed...
    and further posting was given to me in umbergaon(gujrat) and i was also asked to report there the next day i.e. 1july.
    indemnity deed was of 3 years and 2 lakhs rupees.
    but i didnt reported in umbergaon where i was given posting and i went back home leaving the job...
    none of the training was provided to me nor any travelling allowence.
    in this condition. What action they can take...and what can be done to it...please help sir

    ReplyDelete
    Replies
    1. This bond is illegal because during advertisement this type of condition is not mention also u haven't attended a single in office day.

      Delete
    2. Hellow rajan
      need yours help plz
      4month ago I had been placed in IT company position was windows system administrator there was an bond of 18month I have some family issue nd company environment 12hours working my mind has frustrated so plz guide how to break the bond they have taken document 10+2 nd final year graduation marksheet the bond was to pay 1,70000 rs

      Delete
  35. Hi Mr Rajan, Your article against employment rules is very useful. I need clarification on one thing.
    I have worked only for 4 months in an organisation and had to left that because of bad management and colleagues. I had to give personal reason of family medical issues and send resignation mail and never went to work again. But HR of that organisation i continuously sending email to settle the full & final amount of Rs. 1 Lac which is not possible for me. I don't want any experience and relieving letter as I have already cleared the things to my new employer and they have accepted me and I am working with new employer from last 4 months. Now that HR is threatening me for legal issues. Please let me know if any legal action will affect me and my career?

    ReplyDelete
  36. I am a contract employee in a Govt. undertaking. In our service agreement, there was provision of bond but now since some people have started leaving the company, HR dept is deciding to do service bond with all the contract employees. We were not provided any kind of training (neither work related training nor skill enhancement training). I want to know whether my company can execute a bond with us? Will it be legal?

    ReplyDelete
  37. Hi rajan
    I have sogned a bond for two years just two days ago later i identified that work is going harm my health. They took my aadhar and pan card and forced me to sign that bond now i don't want to work their. But the hr is asking me to pay 100000 please help me what i have to do. I was there in the company only for two days.

    ReplyDelete
  38. What if company didn't follows any points as mentioned in the agreement paper between employer & employee...in that case could we break the bond or not.

    ReplyDelete
  39. What if company didn't follows any points as mentioned in the agreement paper between employer & employee...in that case could we break the bond or not.

    ReplyDelete
    Replies
    1. Give the resignation on writing mentioning where the company has defaulted and keep the acceptance of that letter with you.

      Delete
  40. Hi Rajan,

    I need your help with bit urgent, I have joined one MNC company in Chennai and I have total 9+years of experience in the industry. once I had joined they had asked me travel to Doha while joining itself. So after joined into the company within 10 day's I had traveled to onsite, but before i traveled I had signed into service Agreement and in service agreement that they mentioned as i have to pay 10,000$ USD if I leave the company within six months after i returned from onsite. now I had just completed only 3 months and I am back to India by next month and want to discontinue from the India company . If I do that how much this service agreement impact to me and what are legal issue I'll face. Could you please help me on this and give good guidance on this issue

    Thanks
    Shan

    ReplyDelete
    Replies
    1. Yes u need to pay for this. This is company expenditure on your behalf.

      Delete
  41. Hi Mr Rajan
    I have traveled foreign and fell sick after coming back so I could not join my office again as I was not medically fit then. The company had signed a 1 year bond for this from me. Now they are sending me notice form their end for paying 3 lakhs to the company or legal action will be taken. So please could you help me with this by giving me some solution to escape from this

    ReplyDelete
  42. Hello sir,
    I need ur help.I had signed a bond in a private company for 1 year.but after 3 months i had to leave the company suddenly for personal reason.now they are sending me mails to repay.what will i do?actually i came to my home town just for my engagement..but after cumng over there my marraige date was also fixed suddenly.so i culdnt join my company again.what will i do now?will i have to pay 1lakh?

    ReplyDelete
  43. Am extremely sorry about that I was not able to reply to your query it just because of non-availability time, I understand your problems, but what u need to do is to consultant a lawyer (because it’s a lawyer job), one more thing just relax and don’t panicky, what company can do is they can just send mail, letter or call you that all.

    ReplyDelete
  44. Hello sir,
    I joined a school after signing an agreement almost in employers favour but on first day he compled me to compulsory stay in hostel and which was not a part of agreement also.
    Hostel conditions were pathatic and I discussed with my owner but he refused.
    I left that job on second day and senta mail.
    After that he forced me to do job a d still I refused.
    My original marksheet is with him.
    Wht should I do sir.

    ReplyDelete
    Replies
    1. First they cant holdback your any certificate.
      Second Give Resignation in writing mentioning all the condition and try to obtain the receipt copy, If they go further consult a local lawyer

      Delete
  45. Dear sir,

    I had attended a traning imparted by the company on 12th Jan 2016 to 31st March 2016. The company made me to sign a service agreement on 26th Feb , which i was not willing as they had not informed me about the service agreement earlier. However eventully i had to sign under pressure. I have emails where in i have informed that i dont want to sign the agreement and i would like to opt out of it. The agreement say if i leave the company within 2 year then i have to pay the training amount to the company. Please let me know if i leave the company , how legally binding is this

    ReplyDelete
  46. Hi Rajan sir, I have joined an organisation and due to personal reasons , i resigned but couldn't complete the notice period of 30 days. Now i got a mail from the previous employer that i need to pay the amount of notice period short fall. Terms of Employement was signed which has this clause. They mentioned they can take legal action also. Is this legal?

    ReplyDelete
  47. Hello Rajan sir, I had joined a company 2 months back and due to personal reasons i was not able to continue in that... so i resigned and was not able to serve a month notice period. company didn't provide me any training session or company didn't incurred any cost in training... also i was on probation period
    So now i got a mail from HR to pay the fall out of notice period of 30 days else legal action can be taken.
    Can they be any legal action the employer take on this?
    can you help me understand what employer can perform

    ReplyDelete
  48. Yes in your case company can take legal action. Know yo have 2 action, firstly serve for 30 days, secondly you can purchase the 30 days by paying the company (if company has this option, which mainly MNC haves).

    ReplyDelete
    Replies
    1. Hello Rajan sir, What legal actions can be taken..? Ultimately i have to pay the notice period amount to them that is all what can happen right? please let me know what can be the consequences.

      Delete
    2. If you pay then its fine.

      Delete
  49. Hello Sir,
    I am in service level agreement of 10k dollars which company would ask to pay of I leave the cimpany in USA. Is the service level agreement valid by law. Could they hold my experience certificate is it legal

    ReplyDelete
    Replies
    1. Your agreement may me according to US law, if yes, then yes u need to pay.

      Delete
  50. Hello sir,
    I have some queries like,
    I was working with the nice company, while joining the company I sign Demand Promissory Note.
    I'm which that written that" if I failed to give two month notice before leaving service from the company as stated in Para 17 of Service Agreement to pay a sum of Rs 11614/- along with Interest, cost, other related expanded and Liquidator damages. "
    Also mentions " Not over Rs. 50,000/- ".

    After 11 months of joining I have a nice offer from other company but I to join the company vary urgent (Because it is hiring for foreign project ).
    So I failed to give a notice period to my last employer.
    So they take my salary of last month ( more than 12500/-) from my bank account as they credited.
    And warn me that they are going strict action against me also they can prepare legal case.

    After 3-4 days I received a notice from the company that I was absence from the company from last month.
    So they demand for Rs 50,000/- plus compensation towards misusing and stealing companies valuable data.
    Or I have to complete two months notice period.
    They also mentions that, the company will compelled to initiate the legal action as per the Cyber Crime Law And IPC Act against me and for that the entire responsibility will be mine.

    So I need your advice.
    Please give me some suggestions ASAP ...

    ReplyDelete
    Replies
    1. If you have sign "Demand Promissory Note". then yes company can do it.

      Delete
  51. sir i have joined an mnc in the month of june, then in a few days they asked me to sign the bond 0f 2 yrs. if i leave the company i have to pay 6 lakhs. however in my offer letter there is no mention of service agreement/ bond. its is only mentioned that the notice period for me would be 1 month only and they have not provided me with a copy of the bond which i had signed. i want to leave it because of health issues. what can i do to get out of this situation? cud u pls suggest me something..

    ReplyDelete
  52. Hi Sir,
    I have joined in a private company and i have signed the bond of 2 years and they took my certificates .when bond is going to complete within 4 months,I put the leave for one and half month(with their permission) because of my health problem.After completion of leave I decided to quit as my health is not recovered, now company is saying that i did broke the bond so i should pay the money(specified in the bond).can u please suggest me what can i do now?

    ReplyDelete
  53. hi ,
    i joined in software company in chennai the asked me to submit my degree and +2 certificate for 2 years and they made me to sign bond not in bonded paper but in printed paper .i want to leave the company and shift to my native because of health condition .but they are not allowing me to leave and they are not ready to give my original certificate they are asking me to pay 1 lakh amount as compensation..
    please help me how to get my original certificate

    ReplyDelete
  54. Hi Sir,
    I have joined one comapny at hyd .I got one offer letter come agreement about 2 years i signed it before joining and that is too scanned copies .But because of health and family issue i left that company in probabtion perion in one month only .But they sent me notice regarding this.Have to pay onemonth salary and 30k training cost,25k as bont cost thing is that i got only on month salary but i dint go throught any trainig .

    ReplyDelete
  55. Hi Rajan,
    I have joined an organisation in October' 2015, i resigned yesterday but couldn't complete the notice period of 60 days. I request my manager for release me within 30 days of notice period. Terms of Employement was signed which has this clause. My manager says that the company will not give you the salary,noo release letter, even also the PF which was deducted from my previous salary will not be provide if I take early release. Is this legal?

    ReplyDelete
  56. Hi Rajan,
    I have joined an organisation in October' 2015, i resigned yesterday but couldn't complete the notice period of 60 days. I request my manager for release me within 30 days of notice period. Terms of Employement was signed which has this clause. My manager says that the company will not give you the salary,noo release letter, even also the PF which was deducted from my previous salary will not be provide if I take early release. Is this legal?

    ReplyDelete
  57. Hello sir, i have signed a agreement with the company where it stated that I need to pay 60k + 12℅tax on it if I leave the company within service period. But not stated that this will be applicable for training period. I have left the job just after training as I started medical issues due to continue night shift. And I resigned with a document provided to me by dr. So they cannot make a case of absconding but they say document is not valid. Now they say they will be using bond against me for penalty amount. Please suggest is this legal way of employer to make employee pay penalty? Do I need to pay? As I m having genuine reason of leaving the job.

    ReplyDelete
  58. Dear Mr Rajan

    It is highly appreciated if you can forward decided cases of the Supre Hourt and High Court rulings on the Employment Bond is not valid for citing in our case as we are fighting the similar case in the court. It will be very helpful to me and I am thankful to you if you can give some references of the judgements on the employment bonds.

    with best regards

    R.Sukhendra Rao

    ReplyDelete
    Replies
    1. Check AIR of Superintendence Co. of India v. Krishun Murgai. (AIR 1980 SC 1717):

      Delete
  59. Hello sir I have sign a bond with pvt company for 2-year but at the time of hiring all the process is of concrn field but after joining and start working with company the job profile is very different.thay had also taken a two original documents with bond and due to that I leave that company witnin 35 days ,they cant spent any money on training and other things MD of company is very rude he uses always abuses language against employee.as would like to tell you that it is not a bond it is a estamp paper.please help me sir.they are doing phone and telling me that we are going to take strike action aganist you we will send you in jail for breanch commitment and your family members to they told me that we will spoil your career
    Plz give some suggestions

    ReplyDelete
  60. Hello sir I have sign a bond with pvt company for 2-year but at the time of hiring all the process is of concrn field but after joining and start working with company the job profile is very different.thay had also taken a two original documents with bond and due to that I leave that company witnin 35 days ,they cant spent any money on training and other things MD of company is very rude he uses always abuses language against employee.as would like to tell you that it is not a bond it is a estamp paper.please help me sir.they are doing phone and telling me that we are going to take strike action aganist you we will send you in jail for breanch commitment and your family members to they told me that we will spoil your career
    Plz give some suggestions

    ReplyDelete
  61. Hello sir
    I have sign a bond with pvt cmp for 2 years but what the profile they hire me that is totally diffrent as mention in appointments letter I inform them and quit the job I have sign a e stamping of 1 year ctc now they are telling that they will put me jail with family they r using abusing language agaist me
    Please suggest something

    ReplyDelete
  62. Hello Rajan sir, I had joined a company 18 april 2016 with 2 year plain simply A4 sized paper bond. Due to personal reasons(my husband get job in another city and cannot able to live alone here) i was not able to continue in that... so i resigned on 14 sep 2016 and was not able to serve 2 month notice period. company didn't provide me any training session or company didn't incurred any cost in training... also i was on probation period. from 14 sept 2016 i was on home because some health issue.
    So now i got a mail from HR to pay some cost else legal action can be taken.
    Can they be any legal action the employer take on this?
    can you help me understand what employer can perform.

    ReplyDelete
  63. Hello Rajan sir, I had joined a company 18 april 2016 with 2 year plain simply A4 sized paper bond. Due to personal reasons(my husband get job in another city and cannot able to live alone here) i was not able to continue in that... so i resigned on 14 sep 2016 and was not able to serve 2 month notice period. company didn't provide me any training session or company didn't incurred any cost in training... also i was on probation period of 6 month. From 14 sept 2016 i was at hometown because some health issues and unable to go company.
    So now i got a mail from HR to pay some cost else legal action can be taken.
    Can they be any legal action the employer take on this?
    can you help me understand what employer can perform.

    ReplyDelete
    Replies
    1. Sorry for delay response.
      First Bonded employee system is illegal in India
      Second Your bond is not registered or nor in Judicial Paper.
      So company can do nothing they will just harassed you if you have any document left with them. Max to Max they can ask for the Basis Salary to pay for 2 month, nothing more than that.

      Delete
    2. Hello Rajan Sir, I had joined a company (not MNC) 1yr back and survived almost one year.after 1yr completion we got to know they don't have the projects any more so putted a resignation to leave the company, But company higher level people forced me to sign on the bond(judicial Paper) otherwise they were saying, they will not provide the Experience Letter and Reliving Letter, reason I had signed a bond.
      In bond they mentioned like I have to pay around 2 lakhs within 2 years period for training the employee. But they have not told regarding training fee when I joined the company and also they haven't mentioned any where in the offer letter and joining letter. Also they have not mentioned as I'm employee of the that company.

      Now they are saying if I'm not going to pay means they will take legal action on me.

      Kindly need your suggestion in this regard.

      Delete
  64. Hello Rajan sir, I had joined a company (not MNC company) 18 april 2016 with 2 year plain simply A4 sized paper bond. Due to personal reasons(my husband get job in another city and cannot able to live alone here) i was not able to continue in that... so i resigned on 14 sep 2016 and was not able to serve 2 month notice period. company didn't provide me any training session or company didn't incurred any cost in training... also i was on probation period. from 14 sept 2016 i was on home because some health issue.
    So now i got a mail from HR to pay some cost else legal action can be taken.
    Can they be any legal action the employer take on this?
    can you help me understand what employer can perform.

    ReplyDelete
  65. please sir i need answer from you.. i am waiting....

    ReplyDelete
  66. Hii, I have signed a bond for 1 year half month in my last company. At starting, I assumed that i will develop a interest in the profession they were providing me. But that was not true. I have got a good chance on the profile that fancies me and is of my interest , in another company. I left the last company on 27 oct and joined another company. Now after 1 month the old company is demanding the bond. what could i do? As i am unable to pay that amount. I need help urgently as they are threatening me to file the case in supreme court over this. I have signed the bond on stamp paper.

    ReplyDelete
  67. Hii, I have signed a bond for 1 year half month in my last company. At starting, I assumed that i will develop a interest in the profession they were providing me. But that was not true. I have got a good chance on the profile that fancies me and is of my interest , in another company. I left the last company on 27 oct and joined another company. Now after 1 month the old company is demanding the bond. what could i do? As i am unable to pay that amount. I need help urgently as they are threatening me to file the case in supreme court over this. I have signed the bond on stamp paper

    ReplyDelete
  68. Dear sir,
    I had sign a bond which is on estamping for 2 years but the profile which I selected that that profile doesnt exit with the company and then I left the company in 40 days.and only 15 days salary given by company
    But now they are saying that we will put you in jail for this with your family
    Plz help me sir

    ReplyDelete
  69. very good work CS RAJAN. Thanks a lot, this blog helped us a lot.

    ReplyDelete
  70. Hi, I am fully confused right now, that what I can do and what not. Right now I am working in the company since 2013 and I done company bond, then it is necessary to give notice period to the company.
    Second thing If I will not give notice period then what will be step from company side. Company holds documents also. So can you suggest me, your advice

    ReplyDelete
  71. Sir I want you help, i'am a mechanical engineer i was selected in a company last week by the interview but they are saying that i'll have to sign the Bond agreement of 3 years and demanding the check of 2.5 lakcs rupees, i'am so confused than what should i have to do now/ plz help me

    ReplyDelete
    Replies
    1. No Company ask for money at the time of Appointment or at Joining time, check the company thoroughly they take decision. Signing of Bond is just a company HR policy.

      Delete
  72. Am Extremely sorry friends that i am not able to ans all your quires due to lack of time.
    but i guess from my replies to some one you can co-relate your issue and get the ans.

    ReplyDelete
    Replies
    1. Rajan hi this is srijan 9910909483 is my whats num need a urgent help if you would do i appreciate it
      Serious utmost reply

      Delete
    2. Rajan hi i am srijan 9910909483 is my num if you can contact me i wipl be really tahnk ful

      Delete
    3. sir please reply my question which i asked it is very urgent

      Delete
    4. Hi Mr. Rajan.

      Thanks for your blog. It is really useful for us.

      I will be grateful if you could help me with my case. I have just joined a new company one month ago. Now they're planning to send me abroad for training purpose. (Note: The company knows that I will be sent for abroad training during my interview itself. But they did not mention anything about the agreement during interview. HR is agreeing that they did the same for everyone strategically. Anyhow, during interview I asked myself and was told that there is no bond kind of things. If I remind his words to him, he is saying that everyone is signing and asking me to sign). For that, they're asking me to sign a 'Training Commitment Agreement' for 18 months for confirmed employment. If I wish to resign before 18 months, I need to pay 4 lacs. My doubts are:

      1. What is the difference between a bond and training commitment agreement?
      2. Is this a bond? (The papers are bearing only company logo and not any judicial papers)
      3. Should I sign or not? ( your recommendation)
      4. Even if i sign and resign before 18 months, are they eligible to take any legal action against me?
      5. Also, I heard that bond means, both the signatories should hold the benefits whereas which is not in my case as I am sent for training purpose only (to meet the organisational requirements as I am taking a new role in a company). Is it true? If true, will it hold for this 'Training Commitment Agreement'also?

      Please do help me with this situation.

      Thanks!!!
      Thanks a lot in advance!!!

      Delete
    5. Hello sir,
      Actually my appointment letter had a point stating "employee should serve a notice period of 1 month". Which I failed to do..I just left the job without any resignation letter, and now i have received a letter from company stating a claim and if i fail to pay the same, the company would take legal action. So can the company do so? Please help.

      Delete
  73. I was hired as a Trainee Engineer with the 6 month of probation period. They didn't provided any good or paid training. I have completed my 6 month probation period and then they told me we are suspending you for 3 months because of not consistency and disiplinary actions. I don't want to suspension. I want to work in company or leave the company. So if i leave the company is their any amount which i have to pay.

    Below is my agreement.

    ReplyDelete
  74. Sir I want you help, I was hired as a Trainee Engineer with the 6 month of probation period. They didn't provided any good or paid training. I have completed my 6 month probation period and then they told me we are suspending you for 3 months because of not consistency and disiplinary actions. I don't want to suspension. I want to work in company or leave the company. So if i leave the company is their any amount which i have to pay.

    Below is my agreement.

    ReplyDelete
  75. Sir I want your help, I was hired as a Trainee Engineer with the 6 month of probation period. They didn't provided any good or paid training. I have completed my 6 month probation period and then they told me we are suspending you for 3 months because of not consistency and disiplinary actions. I don't want to suspension. I want to work in company or leave the company. So if i leave the company is their any amount which i have to pay.

    Below is my agreement.

    ReplyDelete
  76. Respected sir,
    My husband has signed a bond before going to Singapore by credit Suisse for 5 weeks. For setting up a process in India.
    We are married 3 months earlerNow he is back to India. From 2 months he is working for 19-20 hrs daily.. Still he works for 19 hrs even on weekends.. And he is not paid also for over time.. And when company gave him Singapore dollars.. And now which my husband saved everyday by eating less.. We Need money.. Now his management Is harrasing him a lot.. So that he can leave the company and pay them 3 lakes.. It's a very big amount for us.. Is there any solution?

    ReplyDelete
  77. Hi Sir, I joined a company back in Feb 2016, signed an agreement on A4 sheet paper with company logo. That mentions I have to serve the company for 24 months after completion of 3 months training. I shall be paid after completion of 3rd month. I left the company after 4 months without notice and have not received any salary from them. Now the HR of the company is mailing to my new company HR stating that I should respond back for settlement. But he is not responding to my emails or calls. He is not taking any legal actions nor responding to me, but mailing my current company HR. Please let me know what should I do?
    Please reply.

    ReplyDelete
  78. Hello sir
    I have signed a service agreement with a IT company for 2 years.I have completed 6 months.They provide my one month just training. My parents are also signed in service agreement ( stamp paper ). It's a 24×7 hour working company. I have to work in 3 shifts.So due to health issues , I want to drop it.But they claim to pay Rs 1 lakh as compensation. In service agreement they claim that they provide 6 months training. I have not that much amount to pay.They give me only 10k salary. What are the legal actions,I have to face. How they can recover money as legal action.

    ReplyDelete
  79. Sir, i have joined a MNC in january 2016 as a part of my Industrial training .Then in July the company signed a bond with me for 2 years of Rs1.5 lakh.But i left that company in August without taking any salary for july month.Now the company has sent me a notice for Recoverable amount .Pls tell me what i can do.Is bond legal in my case?

    ReplyDelete
  80. Sir, i have joined a MNC in january 2016 as a part of my Industrial training .Then in July the company signed a bond with me for 2 years of Rs1.5 lakh.But i left that company in August without taking any salary for july month.Now the company has sent me a notice for Recoverable amount .Pls tell me what i can do.Is bond legal in my case?

    ReplyDelete
  81. Hi Rajan,

    I have signed the deputation letters with my company before coming onsite (USA). There is one clause in that I had to pay $500000 if i will be leaving company in USA. Now I have changed the company here & when asking for my experience letter for work period in India they are asking me around Rs. 5,00,000 as bond amount.
    Can you please help me in that ? How can I get all my Exp letters without spending such a big amount ?
    I will really appreciate your help.

    Thank you.

    ReplyDelete
  82. Hello sir plz help me
    I joined a company three months back .they selected 30 trainee for the trainig period for 3 months .and i signed a bond for 2 years but iam still under training not onboarded.if durimg trainig i left this company then will i need to pay the company for breaking this bond .even they havent provided me an offer letter.they just made me signed a bond which looks like a4 paper zerox of judiciary paper
    Plz help

    ReplyDelete
  83. Hi Sir,

    Need your valuable suggestion. I had signed a service agreement in an MNC company which said I need to serve for 2 years and if breached I should pay 1 lakh rupees. I left the company within 2 months as I did not like the environment there and also I found if am there for 2 years I wont have any benefit of learning. Also they did not provide any training. Its nearly 1 year I left that MNC. Now I received a lawyer notice saying I have breached the said agreement and as per that I should pay 1 lakh rupees.It is mentioned if failed to pay they will move to court. On consulting with some friends most of them said they can't and won't do anything after this, so no need to worry and just leave it. But I need a suggestion from you on should I reply to that notice or just leave it as it is. Can they take any legal action on me? and on what grounds can they take? Kindly reply for this sir.

    Thanks in Advance.

    ReplyDelete
  84. Hi sir, I am working in a company and have been forced to sign the bond of 2 years. And really am frustrated of the Jon and want to leave. But company had not given me external training. Which I can proof. Pls suggest..

    ReplyDelete
  85. Even though I am under service agreement of 2years but I haven't signed any bond agreement on legal paper(stamp paper). Can I breach that

    ReplyDelete
  86. Hello Rajan,

    I have signed 3 years agreement, and I served 2.9 months. Suddenly my father met with paralysis stroke and I am with him for 3 months. Now my company terminates me and asking me pay the bond amount to get back my certificates. Please give me your suggestion.

    ReplyDelete
  87. Dear Rajan Sir,
    I have signed 3 years bond of rupees 2 lakh of training . i have worked here for last 2 months. now i got one ore opportuity in US. so now if i put resign i have to pay that money as i am here in probation period now for 6 months. Pls guide me.

    regards
    maulik

    ReplyDelete
  88. Hello sir,
    Bit too urgent. I signed a service agreement in IT company for 2 year. If I breach the agreement I have to pay liquidated damages of 1.20 lakh. In the agreement they states they will provide 6 month training/on job taining . The training is just self study. They didn't spend anything on my training. I have got only 1 month training. After that they shifted me to work. I also signed non disclosure and non competent. I am working here for 6 months now. I have got only 8k salary. I have 3 rotational shifts. It is incredible to work there. I mentally stressed. If it continue it will affect my life. If I resign without completing bond period what are the legal actions actions to face. What will happen to my surety. I am not in a condition to pay bond amount. If I failed to pay bond amount, What will happen ? How long it takes to settle the case. If they punish me. Pleasee give advice. It's urge. What will happen if I goes to abroad after breaking service agreement. Can I negotiate for the training period. ?

    ReplyDelete
  89. Hello Mr. Rajan,

    Few months back, I joined an MNC and signed a service agreement for 2 Years, but soon i understand that i wont be able work there because my manager had no work ethics and always shouting on me while discussing any task which was intolerable as well as i was misguided about the job description. In that frustration i resigned one day. They said okay serve one month notice we will let you go. but nothing happen like that. They refuse to release me and demanded 80K against the training they provided to me (whereas no any training has been done) , 80k cheque was submitted by me initially when i joined. I refused to pay them and asked to return my cheque on my last day and i stopped payment against that cheque. Now they have sent me court summon. What should i do now.

    ReplyDelete
  90. Hello Mr. Rajan,

    Few months back, I joined an MNC and signed a service agreement for 2 Years, but soon i understand that i wont be able work there because my manager had no work ethics and always shouting on me while discussing any task which was intolerable as well as i was misguided about the job description. In that frustration i resigned one day. They said okay serve one month notice we will let you go. but nothing happen like that. They refuse to release me and demanded 80K against the training they provided to me (whereas no any training has been done) , 80k cheque was submitted by me initially when i joined. I refused to pay them and asked to return my cheque on my last day and i stopped payment against that cheque. Now they have sent me court summon. What should i do now.

    ReplyDelete
  91. Firstly very good work CS RAJAN Sir. Thanks a lot, this blog helped us a lot.I have one query.
    I have singed a bond with my company for 2 years.I have completed 1 year, 11 months, 13 days only 17 day remain. If I will leave this company I have to pay 60 thousand as a training cost(But during training they haven't paid me).This bond is on plain paper.No training,no bonus.... nothing provided additionally.
    Do I need to pay this amount?? Please suggest..Is this bond is illegal or what legal action my company can take?

    ReplyDelete
  92. Dear Sir,
    I want to ask one thing i signed letter Name "Service Agreement" and according to company if i leave job before 15 months i have to pay 2.5 months salary which is 62500. already they had taken my signed cheque.
    i complicated only 1 month in this company but i want to resigned from job now.
    did i have to pay the amount. Please guide me

    ReplyDelete
  93. Hello Rajan,
    i need some advice from you. In Feb-2016, i joined in S/W Company. In agreement they mentioned to serve at least 1 year.

    That time, i asked to them like this - "After completion of probationary period, is it necessary to serve 1 year. They said, it's not necessary". After 8 months i given notice period. But they are not accepting and they are forcing me to complete 1 year of service. I am not going to office since last week.

    They sent message like this-"You have signed NDA for 1year, Come to office otherwise we will file a case against you for absconding."

    I already discussed with HR regarding this. But no useful. What should i do now?

    ReplyDelete
  94. Hi, sir I need ur advice, I worked in mnc for last 18months on the day of joining they signed me on a normal paper being said it's a training agreement and they don't give any copy of this. after 18months I left my company with serving the notice period. Now they send a letter in my address and claim 90000₹ to pay or else they file a case against me both civil and criminal what should I do plz help me with ur thought.

    ReplyDelete
  95. good evening sir,

    i am very hopeful too see your blog please suggest me as its very urgent,sir i am an IIT post graduate and through a campus placement i got selection in private university.at the time of joining they ask for service bond on 100 rupees stamp. as per the agreement i will have to serve the university for 1 year with 3 months notice period and if i leave before that i will have to pay remaining months(those are left to complete one year) gross salary. just like as if i join in July and trying to leave in December so 6 months left to complete one year.so i will have to pay total six months gross salary.they also collected a blank check from our side.bond is total one sided.
    presently i am selected in state government job and i will have to join with in one month.so what should i do please suggest.

    ReplyDelete
  96. Hi Sir,
    I am working in an IT company.I was forced to sign a bond for 2 years. Now I frustrated of the work and want to leave. Bond states that I need to pay 50000 of the training cost, but the company had not given any kind of training to me. Pls provide me a proper solution.

    ReplyDelete
  97. Hi Rajan Sir,
    I left the company within 10 days of joining it. I had resigned officially and they didn't ask me to serve the notice period as well (as it would add unnecessary cost for them to train me).
    I had also submitted the clearance form as there were no dues on me.

    Now after 8 months I get a fnf settlement letter from HR of that company asking me to pay for the notice period.
    Please help.

    ReplyDelete
  98. Dear sir

    i was working with a manpower consultancy ,they had a agreement that if a employee leave the organisation ,he /she should not join the similar kind of recruitment agency for one yr after getting releaved from the current organisation ,so is it a valid agreement in India.

    ReplyDelete
  99. Dear Sir

    greetings...

    i was working with a recruitment agency in Bangalore,the company had an agreement that ,if a employee leaves the organisation,he/she should not join any other similar recruitment agency for one year from the date of leaving the organisation,so is it a valid bond or agreemnt

    ReplyDelete
  100. Sir,

    Recently I got selected in one company and they have signed a bond from me says I will join only their company not any other if I get any good offers. Bond is of 2 Lacs. If i get other good opportunity what to do?

    ReplyDelete
  101. Thanks a lot CS Rajan for all the information in this blog.

    I would like to take your advice on a matter concerned with my employment bond. I have an offer letter from the employer which says "Trainee engagement letter". In the trainee engagement letter it is mentioned that in case employee wishes to leave the company, employee has to adhere with the terms and condition in the "training agreement" and "idemnity bond". As per the indemnity bond, employee has to pay an amount of Rs 10 lakh to company for the training cost incurred, if he leaves the company early, i.e before completing 4 years (the period mentioned in the offer letter). Althoug offer letter says that employee has to undergo 6 months training, there were actually no training given to employee, instead employee was assigned with work on the first day of employment. Besides this commapny has collected a blank signed cheque from me. Since in an eager to get the job I signed the offer letter and given a signed blank cheque to the company. It was not mentioned anywere in the Offer Letter or Service Agreement lettter or indemnity Bond regarding the collection of cheque.

    Now I wish to leave the company as they were no salary appreciation from july and apreciation letter was given lately only by november and that too very low appreciation considering the industry standard. Besides that the working culture is also not good. As I decided to leave i am really worried about the signed blank cheque and payment of 10 lakh rupees.

    Please advice me on this matters.Thanks

    ReplyDelete
  102. Hello sir, its very informative blog regarding bond. I also working in a central govt autonomous institutions at Bangalore, and i have 5 year bond here, if it break , i need to pay 3lakhs as fine. I have signed in bond paper during joining time , so now i m trapped here and cannot go for better employment. Please suggest is it possible to challenge at court, because i signed the agreement. Pls reply ur opinion

    ReplyDelete
  103. Hello sir, its very informative blog regarding bond. I also working in a central govt autonomous institutions at Bangalore, and i have 5 year bond here, if it break , i need to pay 3lakhs as fine. I have signed in bond paper during joining time , so now i m trapped here and cannot go for better employment. Please suggest is it possible to challenge at court, because i signed the agreement. Pls reply ur opinion

    ReplyDelete
  104. Hi Sir, you had mentioned that bonds are applicable only if the company has spent money on the personal grooving and enhancements of the employees, but not just a training that helps em,ployees perform better.

    Can you please point me to the supreme court jugdement that narrates the same.

    Thanking you in advance.

    ReplyDelete
  105. Hello Rajan,

    I was recruited by a company as an subcontractor on 3rd party payroll during 2015' Sep.
    10 Months later (Aug 2016) the MNC company made me onroll and asked to sign 2 yrs service agreement and if voided to pay 1L as default amount.
    I had no chance, either to sign the bond and continue or resign the job. So i signed the SA.
    And all my payslip and relieving letter from the 3rd party consultancy was given and i joined as an new employee in my current organization.
    But the take home was lesser than the previous drawn salary.
    3 month later during Nov 2016, i got a better offer and made a decision to take that new offer.
    I informed the new company that i can produce only the subcontract experience letter and they agreed to recruit me and i joined the company.

    Note: my doubts is will the previous company will take action because i left the company by voiding the service agreement.
    Will they black list me in MNC list. please help and give me some suggestions.

    ReplyDelete
  106. Hello Sir,

    I was recruited by a company as an subcontractor on 3rd party payroll during 2015' Sep.
    10 Months later (Aug 2016) the MNC company made me onroll and asked to sign 2 yrs service agreement and if voided to pay 1L as default amount.
    I had no chance, either to sign the bond and continue or resign the job. So i signed the SA.
    And all my payslip and relieving letter from the 3rd party consultancy was given and i joined as an new employee in my current organization.
    But the take home was lesser than the previous drawn salary.
    3 month later during Nov 2016, i got a better offer and made a decision to take that new offer.
    I informed the new company that i can produce only the subcontract exper letter and they agreed to recruit me and i joined the company.

    Note: my doubts is will the previous company will take action because i left the company by voiding the service agreement.
    Will they black list me in MNC list. please help and give me some suggestions.

    ReplyDelete
  107. hii rajan sir i have signed 2yars bond in plan paper. so ihave work in the compay 6 days only .i had left the the job as i didnt like the job . Now compnay send me a notice stae that your terminated and you have to pay 50000 . what should, i do pls help me

    ReplyDelete
  108. Hello sir,
    A company is asking for a bond of 2 years and also asking a security deposit of 1 lac at the tym of joining if I break a bond in 2 years they will withdraw the amount please guide me through this because company is good and I don't want to miss this opportunity.
    Please reply as soon as possible

    ReplyDelete
  109. Hello sir,
    A company is asking for a bond of 2 years and also asking a security deposit of 1 lac at the tym of joining if I break a bond in 2 years they will withdraw the amount please guide me through this because company is good and I don't want to miss this opportunity.
    Please reply as soon as possible

    ReplyDelete
  110. Hi sir,

    First of all a big thanks.

    Sir I got a legal notice from my previous employer and they are demanding a wooping amount of 5lacs from me. As I left that company without serving notice period. They are claiming that they have invested on my Training which they didn't. Also saying that I damaged the products. And I haven't signed any bond.
    What should I do?

    ReplyDelete
  111. Dear Sir
    I have sign 24 months company bond ( on Pvt Ltd company letter head) that is from date of joining 10aug 2016. Falling which will I have to pay 5months salary as penalty and no personal documents will released to me. Now I'm in probation period of six months if I resigned from this company in the probation period should I have to pay the penalty or not.
    I have not submitted any personal documents to them only Xerox copy I had submitted.so I want to resigned from this company but I'm not able to pay so what can I do. Please suggest me sir

    ReplyDelete
  112. Dear sir I have signed company bond ( on letter head of company) for period of Two Years. Falling of which I will be liable to pay 5months salary as penalty and no reliving or experience letter will company provide.
    Sir I'm on 6months probation period now I want to resigned in 5th month. So ii ss any legal actions company can take against me. I would not be able to pay any penalty. I just want to resigned from this company so what can I do now. Please suggest me sir

    ReplyDelete
  113. I am a software enginier & working with IT company. Company has denied to give me a Increment & forcing me to live in company with same salary. I suggest to resign me if you are not setisfied with my perfomance but company threaten me to take a legal action on signed agreement on stamp paper. Please suggest me what should i do in this codition. I have recorded all talk which make with the owner.

    ReplyDelete
  114. I have 5 yrs bond in my autonomous institution,NIMHANS Bengaluru.its signed during joining, if its breaks 3 lakhs compensation to be given.So we cannot apply or do higher education. So my doubt is can we challenge in court , then what is the procedure. Its a problem of more than 50 staff nurses

    ReplyDelete
  115. Ranjan sir,

    I worked for an Ericsson India for 3 months as an Assistant engineer trainee and due to cumpulsory procedure I had to sign a 18 months service bond but due to pathetic working conditions and no work life balance and I had to leave my job and go for higher studies.I told my HR through mail several times that it is not possible to pay this huge bond amount which 1.5 lakhs to the company as I have not been trained during this 3 months. Initially when i joined as a trainee we got 2 weeks NIIT training but they have recovered 34000 Rs from my salary.Now they are asking me to pay 1,16,000 Rs for no sort of training at all.what should I do ?

    ReplyDelete
  116. Hello Sir
    I joined a company as a fresher the offer letter had a statement that if i leave job within a year i have to pay 3 months of ctc to the company. I left ny job after 2 months. How much trouble will I be in if I do not pay the money. I dont have my Salary slips so the company is holding my PF details,hence UAN too. Please give me a clarity.

    ReplyDelete
  117. Dear Rajan,

    if company is a sap Implemented and the bond is base on Sap Software, so can i brake the bond which is 3 year and i am already spent 1.9 years with company....

    but now i am facing one sigment work which is make me tense... so please advice how can i leave the company...


    ReplyDelete
  118. Hi Rajan,

    I need your help with bit urgent.
    I was working in an organisation after my bachelors and I left the same to pursue my masters.
    I had bond agreement of Rs2L, if i brake the same. And had to brake the same to pursue my masters. And also I did not get any releiveing letters, etc.
    This was in the year 2009. And today, after 7 years, they sent me a notice asking to pay up the bond amount of Rs2L. Can this be valid, sending notice, after 7 years? Please suggest me on this.

    Thanks
    Suhas

    ReplyDelete
  119. Hello Rajan Sir, I had joined a company (not MNC) 1yr back and survived almost one year.after 1yr completion we got to know they don't have the projects any more so putted a resignation to leave the company, But company higher level people forced me to sign on the bond(judicial Paper) otherwise they were saying, they will not provide the Experience Letter and Reliving Letter, reason I had signed a bond.
    In bond they mentioned like I have to pay around 2 lakhs within 2 years period for training the employee. But they have not told regarding training fee when I joined the company and also they haven't mentioned any where in the offer letter and joining letter. Also they have not mentioned as I'm employee of the that company.

    Now they are saying if I'm not going to pay means they will take legal action on me.

    Kindly need your suggestion in this regard.

    ReplyDelete
  120. Hi sir I'm in need of your help.i joined in a MNC company 6 months before and my bond period is 3years.Its just in a paper with company's logo on top.I was asked to pay an amount of 1.25k in which 1lakh would be my stipend for training of 1.5 years.please help me.

    ReplyDelete
  121. Hello Rajan Sir,

    I was selected in a BPO. At the time of interview, company didn't mention about a bond or agreement to sign
    On the joining day they said to signed a bond which was of 6 months and rs 1 lakh plus taxes can be taken if revoked.
    I refused to sign the agreement.wherein they send a mail to me stating that "my offer is revoked" from the company.
    After few day i recieved a abseenties letter followed by termination letter on the basis of not coming to office without any notice.
    My question is does they can take any legal action on me or will this termination letter will impact my career?
    Also, in abseenties letter they have said i was not coming to office after 26 November2016. which is not true.

    ReplyDelete
  122. Dear Rajan Sir,

    I have joined a company having two years service agreement and after spending one and a half year,I got a good offer, so i resigned from my current company.
    No training has been imparted to me and neither the company which I could join is their competitor.
    But still the HR department is asking for compensation which is 6 months gross salary.
    The agreement was done on 100 Rs stamp paper.
    Also being in sales and marketing department i was not entitled for any incentive.
    Is such bond enforceable?

    Need your help. Waiting for your answer


    ReplyDelete
  123. Hi I worked in a India pvt Ltd company for a month as a contract employee. I left the job without any information. As I had some personal issues with my family. Now they called me and asking me to pay a amount for 45 days. So what should I do at this time. I really need some suggestions.

    ReplyDelete
  124. Hello sir,
    I am an MBBS doc from Gujarat. We have signed a bind for rural practice with government of gujarat after completion of MBBS. Now after completion of my course, i have applied for it & they have given me a job for a period according to bond agreement that is 3 years. But our Regional Director has asked me to submit ALL ORIGINAL DOCUMENTS of mine including School LC & degree certificate before joining & refused to appoint me if I don't give originals. Regional Directors of other district do not collect original document. Pls help ASAP.

    ReplyDelete
  125. Hi Mr.Rajan,

    Before 2 year i singed bond for 2 year contract and i worked there for one year its pure night shift job due some health i am not able continue i decided to quit the job i formally informed to my HR and Management they also accepted and give back my original certificate. Experience and Relieving letter.
    Now i get offer at MNC while during background verification they mention as breach of contract because of that word.New Hiring company asked me to get NOC from previous company. I requested them through mail and phone but they refused to give Noc. They are not at all understanding. how to get NOC. Please advise

    ReplyDelete
  126. sir I need your help. I am working in ssa department as a brp.This post is fulfill in contract system.our sallary do by district panchayat directly ours bank account.but now gujarat goverment creat a post head teacher in primary school for std. 6 to 8.for this post 5 years experience and htat exam passed compalsery. we brp (block resource Pearson ) experience is not vallied for this post.

    ReplyDelete
  127. hi sir i have joined for company at 1.5 years bond but i have left job in one month now they are saying please complete my projct or give me money otherwise i will go for polic station for fir. is it possible?

    ReplyDelete
  128. Dear Sir,
    I joined a bank(a GOI undertaking) in 2014 where I was made to sign a bond which required me to pay 3 lakh rupees if I left the job before three Years.After joining I found the working environment very suffocating and there was lot of politics all over so much so that I had to quit the job in a month.I did not submit a resignation for the same.After few correspondence the bank removed me from service.At that time they did not mention anything regarding the recovery of 3 lakhs.I was relieved and thought the matter was closed.Now after almost three years they have sent me a letter asking to pay the bond money along with interest @12% per year.Dont know what to do...... Please advice.The letter also says that they would take the legal route to recover d money..

    ReplyDelete
  129. Hello Sir,
    i have signed a service agreement for 2 years but after 4 months of my employment i came to know that my health is not good and Dr advised me to avoid night shifts, but as there was no day shift project and they refused to change my shift in my current project i left the job and now they are demanding the service agreement amount,there was no official training provided to me the only training given to me was by my senior. now what are the consequences.

    ReplyDelete
  130. hi rajan sir..iam working in a MNC since 1 year and 15 days...as I have signed 3 year bond while joining..in bond they said that there will be a 3 years of bond if not you have to pay 5 lakhs...
    But now I want to leave the company because of low salary is being awarded..and there are hike In salary..
    can you suggest me what can I do..is bond really exist..if I leave the company will they give experience certificate..

    thanks
    sandeep

    ReplyDelete
  131. Dear Rajan,

    I signed training bond for 2 years(I need to pay 4 months basic if i wish to leave with in 2 years.

    Now company said it has some internal issue and they will demote all employees to lower grade, so i desided to move to other company but these people are asking me to pay bond money before leaving

    Do i need to pay bond money ?

    Please share me your email, i will send my bond for your review

    Pradeepkumar.reddy@outlook.com

    ReplyDelete

  132. I joined a private limited coaching institute as a physics faculty with 2 year agreement and gave them 10 and 12 lack two undated cheque for 1st and 2nd year. I left the job after one and half year without any notice because I got better job opportunity. They produced only 2nd cheque in bank but it went stopped cheque payment done by me. They they sent me notice and then filed a case . They didn't give me any training and I didn't take any loan from them means I dont have any debt or liability of comapany. I wanted job and without those undated cheque employer were not ready to give me job. As I left , they rescheduled my classes and covered the course with other faculty and they had not financial loss due to me. Even next year after my leaving they got more student and their business increased.
    Can I win this case . Suggest me how can I strongly put my case in court. Or can you give me some similar judgement of some court which help me to win this case.

    ReplyDelete
  133. Sir ,
    I need your kind opinion as I am facing similar kind of problem . I got a job in the New India ASSURENCE comp. Ltd.
    On 18th may 2015 . There I was send a bond for four years including the probationary period , which will be proportionately reduced depending on the length of the service rendered , I got it ready as stated by the company (from any notary public ) and signed on it . They took the bond from me and submitted the same .
    I resigned from the company on jan.2016 . They are asking me the bond value of total gross salary withdrawn by me during the period (₹10 lakh approx ).
    While investigating the bond I found that I am trapped by them in urgency of getting first job , as there is another clause stating that if I resigned during probationary period i have to pay entire salary received by me during the period .
    Please help me by opine how much legal is the last point as stated by me above . Because if I pay entire salary it means the company is indirectly makes my payment zero . Is it legal ? Is the bond legal ? Can anybody's earning be snapped in the disguise of a bond only ? What to do ? Please suggest .

    2.Besides this another quary is there . The bond period as stated by the company is four years which includes the probationary period and the punishment is one year gross salary which will be proportionately reduced depending on the length of the service rendered.
    If this be true , how can there be a separate punishment for resigning during the probationary period as it is already included in the bond period .
    Please suggest me what to do next .

    ReplyDelete
  134. Sir ,
    I need your kind opinion as I am facing similar kind of problem . I got a job in the New India ASSURENCE comp. Ltd.
    On 18th may 2015 . There I was send a bond for four years including the probationary period , which will be proportionately reduced depending on the length of the service rendered , I got it ready as stated by the company (from any notary public ) and signed on it . They took the bond from me and submitted the same .
    I resigned from the company on jan.2016 . They are asking me the bond value of total gross salary withdrawn by me during the period (₹10 lakh approx ).
    While investigating the bond I found that I am trapped by them in urgency of getting first job , as there is another clause stating that if I resigned during probationary period i have to pay entire salary received by me during the period .
    Please help me by opine how much legal is the last point as stated by me above . Because if I pay entire salary it means the company is indirectly makes my payment zero . Is it legal ? Is the bond legal ? Can anybody's earning be snapped in the disguise of a bond only ? What to do ? Please suggest .

    2.Besides this another quary is there . The bond period as stated by the company is four years which includes the probationary period and the punishment is one year gross salary which will be proportionately reduced depending on the length of the service rendered.
    If this be true , how can there be a separate punishment for resigning during the probationary period as it is already included in the bond period .
    Please suggest me what to do next .

    ReplyDelete
  135. Hai sir i signed in one year aggrement.
    And submitted my original documents. After completion of 3 monthes i want to resign the job. They forcing me to do extra time and extra target. If their any possible to get back my oroginal certificates

    ReplyDelete
  136. Hai sir i signed in one year aggrement.
    And submitted my original documents. After completion of 3 monthes i want to resign the job. They forcing me to do extra time and extra target. If their any possible to get back my oroginal certificates

    ReplyDelete
  137. Dear Sir,

    I was working with MNC company on contract with fixed monthly pay. Last three month they had deducted salary for being at office without any information. They did not reply in writing for these deduction. They have done this for all contract employeesonly.
    can you please guide me.

    With regards,
    Rajesh

    ReplyDelete
  138. Hello Rajan, It's glad to have such a great and helpful discussion here regarding Bond breach / action on that. I need your help in one thing as I joined one company in mumbai and I am basically from Madhya pradesh. I was in the organization around 15-20 days but I had left the company 1.5 years back as because of my family severe medical emergency. Company has not spent any amount even 1 Rs. on my grooving / personal imrovement. Even that company had not paid me any amount (even not 1 Rs.). Now 2 days back I got legal notice from that company after 1 and half year. What to do with that as they mentioned that they need my reply on the same?. Should I reply them or just ignore it ?. Please kindly help me with ur sugestion.

    ReplyDelete
  139. My name is Raj and I am working in a private company for last 3 months. I signed a bond with the company for 3 years and have 6 months probation period. The company is not providing me any training. Now I got a government job and decided to resign next month . According to the bond I have to give one month resignation notice. Also in bond it states that the company can fine me rupees of 1 lakhs if I leave. i am ready to give one month notice but can they sue me by asking 1 lakhs. Please help me

    ReplyDelete
  140. Hello Mr Rajan,

    I have joined a company on Nov 2, 2016 and left the company on Jan 2 , 2017. I only got 1 salary from them and I left the company without notice. Now I am receiving letters about legal action for my uninformed absenteism. Can you please suggest the consequences If I do not respond to those letters.

    ReplyDelete
  141. Hi Iam working in a BPO company and taken me on a bond of 2.5 yrs and i have completed 1.6 ys and i get 10,000 per month and i had kept leaves in dec for 4 days and till now they didn't credit me the dec salary and after going to office they sent me and said we will call you back untill then don't come and i had a discussion with HR and manager . They asked me to come back and work again so again I went for working but they didn't credit my salary and i have sent mails to my hr and i personally went and met him conesuctive 3 days but there is no active response and i applied for passport when i went and asked m 10th certificate they asked to pay 40,.000 deposit and take the certificate as i mentioned my salary how can i get that much money and that me and my family don't have any source of income and i explained the same thing still saying the same so please can any let know any advice to get my certificates back i cannot get in that company

    ReplyDelete
  142. Sir can u pls guide me. I joined a pvt co in printing industry as Client Services Executive, I did not sign any bond and nor was I given any appointment letter. Now I hv resigned after 3 months did not serve my notice period full. So I got a mail from HR saying that I should complete my notice period n give in writing that y I was not able to come to work or else they will take some kind of action. Company stil has my approx 18 days salary. So I want to ask what legal action can this company take against me. Pls guide

    ReplyDelete
  143. Sir can u pls guide me. I joined a pvt co in printing industry as Client Services Executive, I did not sign any bond and nor was I given any appointment letter. Now I hv resigned after 3 months did not serve my notice period full. So I got a mail from HR saying that I should complete my notice period n give in writing that y I was not able to come to work or else they will take some kind of action. Company stil has my approx 18 days salary. So I want to ask what legal action can this company take against me. Pls guide

    ReplyDelete
  144. dear rajan sir,
    I have resigned from my job from a government undertaking company after completing 2 years , but at the time of joining I and my guarenter signed a 100 rs stamp bond individually . Now me and my guarenter are fed up by warning notices by the company that they do legal action against me if I not pay the bond of three years of Rs.150000 and other dues with 12% interest p.a. from the date of demand.
    Sir , Please help me ...

    ReplyDelete
  145. dear rajan sir,
    I have resigned from my job from a government undertaking company after completing 2 years , but at the time of joining I and my guarenter signed a 100 rs stamp bond individually . Now me and my guarenter are fed up by warning notices by the company that they do legal action against me if I not pay the bond of three years of Rs.150000 and other dues with 12% interest p.a. from the date of demand.
    Sir , Please help me ...

    ReplyDelete
  146. dear rajan sir,
    I have resigned from my job from a government undertaking company after completing 2 years , but at the time of joining I and my guarenter signed a 100 rs stamp bond individually . Now me and my guarenter are fed up by warning notices by the company that they do legal action against me if I not pay the bond of three years of Rs.150000 and other dues with 12% interest p.a. from the date of demand.
    Sir , Please help me ...

    ReplyDelete
  147. dear rajan sir,
    I have resigned from my job from a government undertaking company after completing 2 years , but at the time of joining I and my guarenter signed a 100 rs stamp bond individually . Now me and my guarenter are fed up by warning notices by the company that they do legal action against me if I not pay the bond of three years of Rs.150000 and other dues with 12% interest p.a. from the date of demand.
    Sir , Please help me ...

    ReplyDelete
  148. Hi sir,

    I joined one IT company in 2015 January. I had a bond of 2 years. As others they had taken a blank cheque of 3lac rupees from me also.
    I went for my higher studies in July 2016, couldn't complete my 2 years in the company and didn't get relieving letter and experience letter as well. Due to some personal issues I came back from studies in October 2016 and rejoined the same company where they considered me as a new employee. Now in March 2017 I will complete overall 2years. Should they consider my overall experience as 2 year and give the letters or if they asked me to clear the due, since I had left job earlier and consider my experience after October 2016 till date i.e, 5 months. How this issue would be solved. Kindly help me regarding this.

    ReplyDelete
  149. I have served 16 months , there was no training given to me but the bond says u have to pay 1.25 lacs if 18 months of services is not done.
    I want to quit the company (Hcl tech). What can I do to safely break the bond.if I put paper they ll hold ma salary and bonus(which is yet to be given , they take away 4k from every month and give us aftr 18months this is called bonus)

    ReplyDelete
  150. I am willing to leave a mnc company for which I have signed a bond for 2 years worth 1 lakh.It's been 1 month since I am working for the company.Can they take any legal action on me.

    ReplyDelete
  151. sir please help me .... I want your cell no.

    ReplyDelete
  152. I had sighned a 3 year service bond agreement with the current employer and after completing the bond period company refugese to pay the secruity money(18 month and 1/6 part of salry).presently i am working in this company since 4 year.how i get my money back.
    Please help me
    Ranjeet
    8984192473

    ReplyDelete
  153. Dear Sir.
    I was selected by indian patent office as patent examiner. I need to sign a service bond of 5 lac i.e. if i leave before 3 years of service I have to pay 5 lac with 10% interest. So I want to know if I leave within 6 month what I have to do?

    ReplyDelete
  154. Hi Sir,

    Right now I am in a situation where I have put down my papers. And willing to pay the buyout amount + amount business loss as well. But the organization(my delivery manager) is not accepting this. He is not interested in relieving me from the organization. He is forcing me to serve the complete notice period of 90 days.

    There is no business dependency on me. I am not associated with any project.

    Kindly suggest what and how should I get myself relieved.

    I already tried a lot.. I requested multiple times to accept my offer but he is mentally harassing me and not ready to listen.

    Please suggest.

    ReplyDelete
  155. Sir
    I had signed a cheque of 75k.but the work was totally different.The bond was for 1 year but I left after 3 months.Now they have sent me legal letter to appear before court.What should I do

    ReplyDelete
  156. Hi rajan i need your help, please advice me. i have signed 1 year bond in a company and i have left that company in 9th day only. so i have beared the bond cost or not. terms and condition of bond is employee has to pay 2 months salary if he leaves before bond period. please advice me soon.

    ReplyDelete
  157. Hi,

    can you please answer my query regarding the bond which i have signed with company . In Nov,2016 i joined a company,they said to us that they will provide us the training for 5 months and after making us to wait till december they started the training in december which lasted only for 10–15 days and after that they made us sit idle for 3 months by just giving us the system and I waited there with hope that they will give us training which didn’t happen(and they didnot pay me during the so called training period).Now i left the company and the bond amount which i have to pay is 1.5lakh(agreement on 100 rupees stamp paper)
    Please reply to this ,I will be very thankful to you.

    ReplyDelete
  158. rajan sir please help me
    I want your help , me and my guarantor have signed a bond of 1.5 lac each on a 100 rs stamp paper with notary at the time of joining in a state PSU . but after completion of 2 yrs. I resigned and joined the same state government in 2014. now my guarantor and me are warned by my previous company that they take legal proceedings against it , and they are going to cut the amount from monthly salary of guarantee.
    now what me and my guaranter have to do ??????

    ReplyDelete
  159. I joined a company in Sept 2015 and my bond period is till may 2018 and at the time of employment they had taken undated cheque of 7 lakhs from me now the main concern is that last year they gave me transfer to a location which was not among my preference location and also made me work in one of its sister concern where the work culture is pathetic and I have got a opportunity better than this so I want to leave this job and I don't want to pay the money either so pls suggest me what should I do.

    ReplyDelete
  160. Hello sir,
    I was working in a it company where I had 1 year bond.as a security they took 20000 rs check.They forced me to work on a same project from the joining to till now. As a result I need to leave the company 1 month before the bond completion. I am so much dippressed .I want to know how they can take legal action against me. Please suggest me

    ReplyDelete
  161. Hello sir,
    I was working in a it company where I had 1 year bond. I need to leave the company 1 month before because I am so much frustrated about my working,they forcing me to work on a same project from the date of joining . I had given 20000 cheque as a security to company.now I want to know what my company can go against me. I am really worried about this.

    ReplyDelete
  162. Hi Mr. Rajan.

    Thanks for your blog. It is really useful for us.

    I will be grateful if you could help me with my case. I have just joined a new company one month ago. Now they're planning to send me abroad for training purpose. (Note: The company knows that I will be sent for abroad training during my interview itself. But they did not mention anything about the agreement during interview. HR is agreeing that they did the same for everyone strategically. Anyhow, during interview I asked myself and was told that there is no bond kind of things. If I remind his words to him, he is saying that everyone is signing and asking me to sign). For that, they're asking me to sign a 'Training Commitment Agreement' for 18 months for confirmed employment. If I wish to resign before 18 months, I need to pay 4 lacs. My doubts are:

    1. What is the difference between a bond and training commitment agreement?
    2. Is this a bond? (The papers are bearing only company logo and not any judicial papers)
    3. Should I sign or not? ( your recommendation)
    4. Even if i sign and resign before 18 months, are they eligible to take any legal action against me?
    5. Also, I heard that bond means, both the signatories should hold the benefits whereas which is not in my case as I am sent for training purpose only (to meet the organisational requirements as I am taking a new role in a company). Is it true? If true, will it hold for this 'Training Commitment Agreement'also?

    Please do help me with this situation.

    Thanks!!!
    Thanks a lot in advance!!!

    ReplyDelete
    Replies
    1. No its not a bond, company can ask you to pay the training cost + compensation (if any) if you break the agreement.

      Delete
  163. Respected Sir,

    I have signed a appointment letter with a Company as a Company Secretary, which states that in case if i leave the organization i will have to give 2 months notice or 2 months Salary. I worked there for one month and in that one month i noticed that no statutory records are maintained by the Company since incorporation and they are going to show my appointment at MCA also. So keeping in mind the legal complications i decided to quit the Company without giving the notice. The appointment letter is on the letter head of the Company.Please guide me what could be the legal remedies that Company can pursue against me. Thank You so much in advance.

    ReplyDelete
  164. Hello sir,
    Actually my appointment letter had a point stating "employee should serve a notice period of 1 month". Which I failed to do..I just left the job without any resignation letter, and now i have received a letter from company stating a claim and if i fail to pay the same, the company would take legal action. So can the company do so? Please help.

    ReplyDelete
  165. Dear sir ,
    I have joined in one of the Navratna comapny(PSU) ,As per bond 100000 money i has to pay in Bond break.I have worked in this comapny for 3 months. what are consequences if left the company without intimation?Any legal issues?

    ReplyDelete
  166. Dear sir,
    I have joined in A Navaratna coampny .I have signed judiciary on bond for Pay Rs.100000 ,I have worked here only for 3 months.Kindly help me.Incase iam not intimated & left from the company,any legal consequences in future?

    ReplyDelete
  167. The below info will help you people alot.


    Chapter VI of the Indian contract Act, 1872(Sections 73, 74, 75) discusses about remedies available to the breach of contract.

    Every case of compensation for breach of contract has to be dealt with on the basis of sec 73 of the Act. In a particular case where the contract itself stipulates for payment of a sum of money on the breach of contract or contains any other stipulation for penalty, the principle additionally propounded by sec 74 also will have to be applied and that is why irrespective of the amount stipulated in the contract, the party suffering from the breach is entitled only to reasonable compensation which, however, shall not exceed the amount so stipulated in the contract. Whether it be a contract which stipulated a sum of money as being payable on breach of contract or whether it is a contract which does not contain any such clause, the party complaining of breach of contract cannot successfully claim compensation unless he makes out loss of damage referable to such breach.That is why sec 74 of the Act deliberately states that what is to be awarded is reasonable compensation. In a case where the party complaining of breach of the contract has not suffered legal injury in the sense of sustaining loss or damage, there is nothing to compensate him for, there is nothing to recompense, satisfy or make amends. Therefore, he will not be entitled to compensation.

    The below judgement will help you all in this topic.

    In Fertiliser and Chemical Travancore Ltd. v. Ajay Kumar and others, the employer selected three trainees who then signed a bond that they would obtain two years training in the Company and after the training they will put in at least five years service in the company. In case of a breach of these conditions by the trainees, Rs.10,000/- was to be paid as reasonable compensation for the damages likely to be incurred by the employer. But the trainees resigned after five months. The employer filed a case for recovery of damages for breach of contract based on the bond executed by the trainees. High Court of Kerala observed that though the selection of trainees was for absorption into training, the employer was not bound to appoint them on permanent service. But a trainee, who accepts the selection and joins training after entering into bond, binds himself to undergo the training and then accept regular appointment, if offered, for a minimum period of five years. The process of selection itself involves time, energy and expenses for the employer. This is the case of training also. Over and above other expenses during training, each trainee is paid a stipend.
    The employer will definitely incur loss when a trainee breaks the conditions of the bond and walks off. The employer is deprived of the expected service of a competent person, for which fresh selection and training may become necessary. Breach of bond by the trainee is, therefore an aspect involving damages to the employer. Only the question of the quantum of the damage then remains to be decided.

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