Can Company Sue U If You Signed A Bond And Leave The Job

Hi I am Siju Mathew, and I am not a HR. I am bringing in a different dimension to this issue. It is a genuine query which I have come across with many people. To my knowledge and discussion with various people I found that signing up a bond in itself is illegal. The company can never take you to labour court if you are violating the contract which you sign as a bond. Secondly if the company holds your rights citing the bond then as a consumer and an employee you have all the rights to take the company to the court.
25th February 2011 From India, Madras

Whether the following is applicable upon the bond or not? Section 5 in The Bonded Labour System (Abolition) Act, 1976
25th February 2011 From India, Chandigarh

Dear Garggirl,

after going through you concerne for your friend, let me inform you as per the provisions of the labour law no company can forcefully retain any employee. However the employer has the option to go for a bond in case he has invested on the employee for any training or anything such thing.

You might have noticed many companies take an agreement from an employee before joining for a period of 1 year max an if wishes to resign after the completion of 1 year has to give 2 months notice. and in case he wishes to resign before that he has to pay a certain amount (normally 1 or 2 times of monthly basic pay)which the employeer might have spent on sourcing the employee through some consultant, but that is also a maximum period of 1 year.

Here you say the bond is signed for a period of 3 years and any breach of this contract the employee has to pay 1 lacs, this needs more clarity why the bond was signed for this value.

If the bond was signed for no reason like no specilised training being provided by the employeer you have every right to take a legal course of action.

Better to consult some person who is conversent with labour laws with Legal aspects.

regards.
25th February 2011 From India, Hyderabad

ask your friend to daily come to office late, and leave early, show low performance, shout in office and throw tantrums, ultimately then assign it as some family , marriage pressure, then HR itself will relieve your friend with that james bond....
When HR talks about bond and rules we have to be smart and make them break their own rule, so ask your friend to behave as such that HR itself will ask your friend to resign.
25th February 2011 From India, Madras

Dear All Haryana Govt revise the Minnimum wage from 01.01.11 here is attachment for your refrance regd/naresh khola
25th February 2011 From India, Delhi

Attached Files (Download Requires Membership)

Minimum Wages Notification.pdf (1.59 MB, 49 views)

The provisions of the Act applies to the labour force who are under agreement to serve on account of some debt from a particular person. The forms of forced labour is --
Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti.
So the service people do not come within the purview of the bonded labour Act.
Of course the Act has the need to be amended to cover up any type of bond.

26th February 2011 From India, Delhi

Though the reason cited by your friend is genuine rules do not sometimes accept this excuse as she knew that she hasd signed the bond for 3 years at the time of recruitment. In my opinion there are only two/three alternatives to this problem
1) Give a representation to the company requesting them to waive off the penalty as she is forced to quit due to a genuine reason.
2) Somehow manage to pay the money.
3) Consult an advocate to find loopholes to come out of this problem.
4) Try with the company for reduction in penalty amount.
27th February 2011 From India, Hyderabad

I am fully aggreed with KDCCORP. There is no any law to bond an employee by a company. Don’t afraid. Suresh Thakur
28th February 2011 From India, Delhi

Dear Friend,
In order to beat attrition and to attract talent, the employers have been engaging the employees and as such it has become a common practice to have an agreement with the employees that for a specified period, such an agreement will not be constitutionally valid which has been repeatedly clarified by the Supreme Court and the High Courts. Reference is made to a case wherein it has been held that Freedom of changing employment for improving service conditions is a vital and important right of an employee which cannot be restricted or curtailed.
American Express Bank Ltd. vs. Ms. Priya Puri, 2006 LLR 682 (Del. HC)
Thanks & Regards,
Jayanta Basak
HR Professional
2nd June 2011 From India, Calcutta