Dear HR Professionals,
My cousin who is working with an IT company has recently resigned for a valid reason.His surety bond is for 18 months and he has completed just 10 months.As per the contract it is definitely a breach of contract. He has resigned and is now serving his notice period.Would he be liable to pay the entire bond amount for the said period?He has received training for just one month or so.Please advise.
From Nigeria, Lagos
2My cousin who is working with an IT company has recently resigned for a valid reason.His surety bond is for 18 months and he has completed just 10 months.As per the contract it is definitely a breach of contract. He has resigned and is now serving his notice period.Would he be liable to pay the entire bond amount for the said period?He has received training for just one month or so.Please advise.
From Nigeria, Lagos
Dear Romina,
You have given reply in your post itself. Letter of appointment is contract between employer and employee. If a contract is signed then contractual obligations need to be fulfilled. In the appointment letter has it been mentioned that if the resignation is for valid reasons then no bond payment needs to be paid? Secondly, how to assess the validity of reason(s) of the resignation?
Earlier there were posts that stated that the taking bond from employee is illegal. Check this forum and find out whether you get that thread. Secondly, your cousin needs to fight the case in court to prove that the terms of appointment letter were illegal. Is he prepared for that?
Thanks,
Dinesh Divekar
From India, Bangalore
You have given reply in your post itself. Letter of appointment is contract between employer and employee. If a contract is signed then contractual obligations need to be fulfilled. In the appointment letter has it been mentioned that if the resignation is for valid reasons then no bond payment needs to be paid? Secondly, how to assess the validity of reason(s) of the resignation?
Earlier there were posts that stated that the taking bond from employee is illegal. Check this forum and find out whether you get that thread. Secondly, your cousin needs to fight the case in court to prove that the terms of appointment letter were illegal. Is he prepared for that?
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Dinesh,
I have gone through the same it is a service agreement between the two with a mention of surety in the letter of undertaking.Such agreements are new to me.
He can resign if unable to discharge duties but clearly states that he is liable to pay damages to the company and a certain lump sum is mentioned.
He will certainly not fight the matter in the legal court.They have elaborated so much on training and I have checked with him.Since he has completed just 10 months,the training was just for 3 weeks.How well can he negotiate on this surety bond?I have read the previous threads but people have absconded and he has not.What is the best way out here?
From Nigeria, Lagos
I have gone through the same it is a service agreement between the two with a mention of surety in the letter of undertaking.Such agreements are new to me.
He can resign if unable to discharge duties but clearly states that he is liable to pay damages to the company and a certain lump sum is mentioned.
He will certainly not fight the matter in the legal court.They have elaborated so much on training and I have checked with him.Since he has completed just 10 months,the training was just for 3 weeks.How well can he negotiate on this surety bond?I have read the previous threads but people have absconded and he has not.What is the best way out here?
From Nigeria, Lagos
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High Court Judgement on Breach of Bond and Quantum of Compensation.PD F