Dear Seniors,
I would like to know whether it is fair to take bond in recruitment in the following cases -
1. ' asking two serve the company for a minimun period '
2. ' One cannot join a simillar[ competitors, having same nature of busines etc ]company within a period.
3. Bond for confedentiality and intellectual property and a penalty of usd 1 lac in case of not abiding the clause.
This is a case of my friends organization where an agreement is signed after joining new employess. I can also provide the detail texts if needed.
Looking forward to your valuable suggestions.
Thanks and best regards,
Monir Hossain
From Bangladesh, Dhaka
I would like to know whether it is fair to take bond in recruitment in the following cases -
1. ' asking two serve the company for a minimun period '
2. ' One cannot join a simillar[ competitors, having same nature of busines etc ]company within a period.
3. Bond for confedentiality and intellectual property and a penalty of usd 1 lac in case of not abiding the clause.
This is a case of my friends organization where an agreement is signed after joining new employess. I can also provide the detail texts if needed.
Looking forward to your valuable suggestions.
Thanks and best regards,
Monir Hossain
From Bangladesh, Dhaka
Dear, m agreed u can do a bond with any one. but 2,3 clause are preety hard to imply. Regards Vipin
From India, New Delhi
31From India, New Delhi
dear you can send the text of the bond but these type of bond does not have any legal authenticity. tks js malik
From India, Delhi
From India, Delhi
Dear Mr. Malik ,
Thank you very much for your e-mail and your suggestion. I am sending you the whole text of the document. If we take bond in the recruitment procedure .... would it be valid ? As you said, the agreement wont have any authenticity , I would like to here your kind suggestion after reviwing the texts-
TEXT of The Agreement
I .. son/daughter of .. . residing at ... . do hereby undertake and covenant as follows:
I. I shall not join any company/business which is directly/indirectly competitor of my company or run a business of my own in similar lines directly and/or indirectly for a period of 3 (three) years after I leave the company. Competing business shall mean and include any business concern located in Bangladesh and abroad which is engaged in business of the similar nature or of similar product of competing enterprise which to the discretion of the company may affect the business of the company adversely.
II. I will not divulge or disclose the business secrets, intellectual property rights of the company, the technical know-how of the Company and its products and services and other information in respect thereof, not only during my service, but even after I cease to be in the service of the Company. I shall not, directly or indirectly, use the information I gathered during my service at the company to bring it to disrepute or damage its business.
III. I also agree that I have fiduciary duties with the company and I will not put myself in a position where I abuse that responsibility.
IV. If I violate any of the covenants stipulated above, barring Covenant I, I shall immediately pay to the Company a sum of TK 1,000,000/ (One Million taka) which the company shall be entitled to deduct from my dues or by filing suit in the competent court of law. I also realize that in addition to this sum of TK 1,000,000/ (One Million Taka) I will be further liable for any potential loss of business revenue to the Company from breaching any of the covenants above.
V. I undertake that the company shall not issue me a Release Order in case of my violation of any of the covenants stipulated above. My Release Order shall also contain the covenants stipulated above, so that my new employer is well aware of the covenants and can be held responsible for contributing to any of the violations thereof.
VI. I further covenant that the company shall be entitled to inform my new employer regarding any of the breach of the covenants stipulated in this letter of undertaking and also be able to claim the same from my new employer after proper intimation to them of any of the breach.
.
Signature of the Executants
Name:
Designation:
Department:
Permanent Address:
This is the practice of a very global company of Bangladesh. The management of the company may be misguided to take bonds for retaining people. How dow you evaluate this kind of HR practice ?
Thank you once again for your valuable comments.
Best regards,
Monir Hossain
From Bangladesh, Dhaka
Thank you very much for your e-mail and your suggestion. I am sending you the whole text of the document. If we take bond in the recruitment procedure .... would it be valid ? As you said, the agreement wont have any authenticity , I would like to here your kind suggestion after reviwing the texts-
TEXT of The Agreement
I .. son/daughter of .. . residing at ... . do hereby undertake and covenant as follows:
I. I shall not join any company/business which is directly/indirectly competitor of my company or run a business of my own in similar lines directly and/or indirectly for a period of 3 (three) years after I leave the company. Competing business shall mean and include any business concern located in Bangladesh and abroad which is engaged in business of the similar nature or of similar product of competing enterprise which to the discretion of the company may affect the business of the company adversely.
II. I will not divulge or disclose the business secrets, intellectual property rights of the company, the technical know-how of the Company and its products and services and other information in respect thereof, not only during my service, but even after I cease to be in the service of the Company. I shall not, directly or indirectly, use the information I gathered during my service at the company to bring it to disrepute or damage its business.
III. I also agree that I have fiduciary duties with the company and I will not put myself in a position where I abuse that responsibility.
IV. If I violate any of the covenants stipulated above, barring Covenant I, I shall immediately pay to the Company a sum of TK 1,000,000/ (One Million taka) which the company shall be entitled to deduct from my dues or by filing suit in the competent court of law. I also realize that in addition to this sum of TK 1,000,000/ (One Million Taka) I will be further liable for any potential loss of business revenue to the Company from breaching any of the covenants above.
V. I undertake that the company shall not issue me a Release Order in case of my violation of any of the covenants stipulated above. My Release Order shall also contain the covenants stipulated above, so that my new employer is well aware of the covenants and can be held responsible for contributing to any of the violations thereof.
VI. I further covenant that the company shall be entitled to inform my new employer regarding any of the breach of the covenants stipulated in this letter of undertaking and also be able to claim the same from my new employer after proper intimation to them of any of the breach.
.
Signature of the Executants
Name:
Designation:
Department:
Permanent Address:
This is the practice of a very global company of Bangladesh. The management of the company may be misguided to take bonds for retaining people. How dow you evaluate this kind of HR practice ?
Thank you once again for your valuable comments.
Best regards,
Monir Hossain
From Bangladesh, Dhaka
MonirBhai,
Don't waste your time and energy on this kind of bonds or agreements or contracts whatever nomenclature you give but this will not serve your purpose.
This kind of documents are treates as illigal and bogus practices because it is not supported by the law. Law prohibits such practices which are against fundamental rights of other citizens and human rights...You cannot employ people like bonded labour of 15 th Century Midieval age of Zamindari..
Rediculeous..proposal
Rashid
From Saudi Arabia
Don't waste your time and energy on this kind of bonds or agreements or contracts whatever nomenclature you give but this will not serve your purpose.
This kind of documents are treates as illigal and bogus practices because it is not supported by the law. Law prohibits such practices which are against fundamental rights of other citizens and human rights...You cannot employ people like bonded labour of 15 th Century Midieval age of Zamindari..
Rediculeous..proposal
Rashid
From Saudi Arabia
Dear Rashid Bhai,
This is the practice of a very big renowned company in bangladesh. I am strongly against this sort of unprofessional practices, but I am trying to make the management understand that this is not the righ approach and right practice, but there are other people who are trying to convince the management for implementing such practice. even the legal adviser of the company is also promoting it. Me as a HR professional, I was just trying to get the opinion from other professionals so that I can get some strong standing against the bond from the support and references from various sources.
Thanks for your e-mail.
Monir Hossain
From Bangladesh, Dhaka
This is the practice of a very big renowned company in bangladesh. I am strongly against this sort of unprofessional practices, but I am trying to make the management understand that this is not the righ approach and right practice, but there are other people who are trying to convince the management for implementing such practice. even the legal adviser of the company is also promoting it. Me as a HR professional, I was just trying to get the opinion from other professionals so that I can get some strong standing against the bond from the support and references from various sources.
Thanks for your e-mail.
Monir Hossain
From Bangladesh, Dhaka
Mr.Rashid is right, and Mr.Monir I appreciate you are trying to make you management understand the things.
From India, Indore
From India, Indore
Every body said it is unethical and legally not valid.
Pls also quote some case references where the courts proclaimed it as illegal and void.
Pls also enlighten us what employee has to do if the employer does not relieve the employee stating the terms and conditions.
As per my knowledge only two options will remain whether pay the money or go to court.
Is there any other way to get rid off?
Anjan
From India, Bangalore
Pls also quote some case references where the courts proclaimed it as illegal and void.
Pls also enlighten us what employee has to do if the employer does not relieve the employee stating the terms and conditions.
As per my knowledge only two options will remain whether pay the money or go to court.
Is there any other way to get rid off?
Anjan
From India, Bangalore
Hi!!
I have been reading this topic for some time now. Actually none of this makes any sense to me.
Lets look at both sides of the coin - The employers first. They can float any bonds, tantamounting to slavery or not, as they are very much the authorities in demand - the old hindi adage JISKI LAATHI USKI BHAINS THOSE WHO WEILD POWER CAN DICTATE THE TERMS. But before going any further can anyone here sugeest any precedent where a verdict was given by any court in India terming this as illegal. We all say it was illegal - but has nayone bothered to find out why and how is it illegal. Quoting generically from human rights etc. really does not meet the need. And even if it is illegal let me assure you that the captains of Industry think otherwise. They will tom tom quite the opposite tune in public but talk to them in private and they show their true colours. This I have experienced first hand with people of the level of CEO and President of reputed telecom MNC - ne hear say there.
Come next the candidates - why are we wailing for them?? They will not challenge these behemoths at any forum because of the fear of being branded as villains of the industry and hence the fear of being rejected at all levels in all forums (including cite HR). And hence they continue thier slavery or seethe at their losses hoping to make up for it soemtime later in their career.
Finally and thankfully the coin only had two sides. For if it had a third we the hypocites at CITE HR (including yours faithfully) would have been lambasted for making big noises but lacking the will to muster courage and saying NO to such practices at our work place. After all we too have a family to feed dont we ?? and even if we dont we sure have ambitions to fulfill and that we cant do by displeasing the powers that be.
Regards
From India, Delhi
I have been reading this topic for some time now. Actually none of this makes any sense to me.
Lets look at both sides of the coin - The employers first. They can float any bonds, tantamounting to slavery or not, as they are very much the authorities in demand - the old hindi adage JISKI LAATHI USKI BHAINS THOSE WHO WEILD POWER CAN DICTATE THE TERMS. But before going any further can anyone here sugeest any precedent where a verdict was given by any court in India terming this as illegal. We all say it was illegal - but has nayone bothered to find out why and how is it illegal. Quoting generically from human rights etc. really does not meet the need. And even if it is illegal let me assure you that the captains of Industry think otherwise. They will tom tom quite the opposite tune in public but talk to them in private and they show their true colours. This I have experienced first hand with people of the level of CEO and President of reputed telecom MNC - ne hear say there.
Come next the candidates - why are we wailing for them?? They will not challenge these behemoths at any forum because of the fear of being branded as villains of the industry and hence the fear of being rejected at all levels in all forums (including cite HR). And hence they continue thier slavery or seethe at their losses hoping to make up for it soemtime later in their career.
Finally and thankfully the coin only had two sides. For if it had a third we the hypocites at CITE HR (including yours faithfully) would have been lambasted for making big noises but lacking the will to muster courage and saying NO to such practices at our work place. After all we too have a family to feed dont we ?? and even if we dont we sure have ambitions to fulfill and that we cant do by displeasing the powers that be.
Regards
From India, Delhi
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