Dear Seniors
Greetings!!!
I am to join a new organisation and they have asked me to Sign a SURETY BOND with them.
I would like to know if this legal and enforcable.
The deatled Bond is as:
<<<date >>>....between.................<<< name & adresss>>>
at present employed as <<<< Designation>>>.... <<<Employer>>>
(herinafter called "the
employee") of the first part; and __________________________(please give details
such as name, status, etc of the sureties)herein after called as surety presently residing at
__________________________________________________ ___________of the second
part and <<< Company's Registered office address>>>Hereinafter called the "Company" of the
third part;
WHEREAS the Employee has agreed to be loyally employed with and take training by
the aforesaid Company. The Employee has agreed to be employed by the company, also
having agreed to terms and condition herein after appearing and furnish a survey for
fulfillment of the obligation on his part and the surety has given his consent to the same.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The Employee shall become an employee of the Company as per details of the
appointment letter and remain employed with the Company with a minimum period of
12 months from the date of joining.
Signed __________________ Signed __________________
2. The Employee and the surety hereby jointly and severally agree and convent that:
(a) During the period of training with the company or any firm or factory under or in
which the employee undergoes training, the Employee shall faithfully, honestly
and diligently take training in such company, firm or factory, keep its secrets,
shall obey all its or its officers lawful orders and shall not directly or indirectly
take part or engage in other trade, business, service or occupation.
(b) The Employee shall confirm to the working hours, rules and regulations including
leave rules in the force of the company at all times.
(c) The Employee shall not waste or spoil the goods of the company nor without its
consent, lend, advance or dispose them off or any part thereof to nay person or
persons.
(d) The Employee shall serve the company or any associated or allied concern in such
capacity or post as the company or any of its officers shall decide, whose decision
shall be final and biding on the employee.
(e) The Employee shall work in the company for a period of minimum 12 months on
the terms and condition of this agreement(herein after called "the period of
service")
3. (a) If the Employee leaves the service of the company including absconding without
the permission of the company (or without any cause justifiable in the option of the
company) during the period of service he/she shall pay the company an amount of
Rs.One lac only
(b) If the Employee leaves the service of the company without permission of the
company during the period of the service including absconding he shall pay to company a
sum of Rs.One lac to cover the expenses incurred by the company on his/her account
including the salary and the wages paid during the period, training cost and the
opportunity cost of business that could be generated .
(d) During the said term of period of service whether the employee be in the employment
of the company or not for any part of time either individually or in any other manner and
wither directly or indirectly ,work negotiate or enter the service of or be employed with
or accept any consultation or supervision work or be interested in or concerned with any
person firm or company or body of persons whether incorporated or not ,carrying on or
engage or interest itself or themselves in any business ,trade,vocation,calling or
occupation of a like or similar nature with that of the company.
Signed __________________ Signed __________________
4. (a) It the Employee shall willfully disobey the lawful and reasonable orders of the
company and the firm or factory under or in which he undergoes training and or its
officers or shall persist in the opinion of the company, firm or factory in absenting
himself from her place of work without leave except in case of illness or accident or shall
otherwise wrongly conduct himself or is found taking part in any movement of
propaganda which is detrimental to the interest of the company or fail to make sufficient
progress in her training or work or is found applying or negotiating for employment
outside or shall be guilty of nay misconduct or shall be engaged or concerned either as
principal or agent in any betting transaction or shall draw ,make or accept or otherwise
render himself liable under bill of exchange, Promissory note of guarantee or shall
neglect to give her whole and attention to the business of the company or commit any
breach of terms of this agreement, the company or the firm or the factory may summarily
discharge and dismiss bathed employee from the service forthwith. Upon such
termination the employee and the surety shall be jointly and severally liable to refund to
the company the expenses incurred by the company on her account for training including
salary and wages paid to him during the training period with the company and the firm or
factory and the amount incurred for this passage to and fro and the amount equal to her
salary for six months prior to such termination and shall jointly and severally be liable for
all losses and damages incurred or sustained by the company with the permission of this
agreement.
(b) The Employee shall not during or after termination of this agreement canvass solicit
interfere with or entire away person,. who shall at any time during the continuance of the
Employees employment hercunder have been in the employment and/or in the business
relations with the Company
(C) If in the opinion of the Company or the firm or factory under or in which the
Employee undergoes training, the Employee on account of illness or other
reasonable clause is unable to perform her duties satisfactorily the Company ma
discharge the Employee.
5. (a) The liability of the Surety under this agreement shall or co-extensive with that of
the Employee and shall not in any way be affected at any time given to employee. waiver
or alteration of any terms o this agreement or otherwise or indulgence of any nature of
kind whatsoever giver-, made or show-. by the company to or in favor of the employee
and to all intents and purposes the liability of such surety for payment of all sums of
moneys under this agreement shall be deemed to be that of a principal party jointly and
severally liable with the Employee.
(b) The surety also agrees to make good the company all losses or damages suffered
by the company through any breach by the employee of the terms and conditions of
this agreement or arising out of his employment with the Company.
(c) This agreement shall be construed as having been made at Delhi and that the
rights and liabilities of the parties hereto in case a dispute arises shall be decided by
the Court at Delhi or the appropriate court having jurisdiction and shall be construed
according to the law for the time being in force.
Signed __________________ Signed __________________
(d) In the event of any dispute or difference that may arise between the parties
relation to this agreement the same can be amicably resoled by referring to arbitration
in. terms of Sec, 7 of the Arbitration and Conciliation Act, 1996 and the
award/decision of the arbitrator/s shall be binding on both the parties. In the event
of arbitrators not coming to any conclusion, it is agreed to refer the dispute to the
High Court at Delhi (mention the location of the High Court) in India.
(e) In addition to the payment of the amount specified as above, the Employee and the
surety hereby agree and undertake to indemnify the Company against all claims legal
fees and any other costs that may be incurred related to or arising upon a breach of
this agreement.
IN WITNESS whereof the said Employee ......, Surety
Shri _______________________________ and the said <<< Employer>>>> have hereinto set their hands and seals hereinto the day and the
year first above written.
For XYZ
Employee
Director Name:__________________
Date : _________________
Witness: SURETY
1.________________ Name:________________
Date_________________
2.________________
Signed __________________ Signed __________________
From India, Delhi
Greetings!!!
I am to join a new organisation and they have asked me to Sign a SURETY BOND with them.
I would like to know if this legal and enforcable.
The deatled Bond is as:
Surety Bond
This agreement is made at Delhi, on this <<<date >>>....between.................<<< name & adresss>>>
at present employed as <<<< Designation>>>.... <<<Employer>>>
(herinafter called "the
employee") of the first part; and __________________________(please give details
such as name, status, etc of the sureties)herein after called as surety presently residing at
__________________________________________________ ___________of the second
part and <<< Company's Registered office address>>>Hereinafter called the "Company" of the
third part;
WHEREAS the Employee has agreed to be loyally employed with and take training by
the aforesaid Company. The Employee has agreed to be employed by the company, also
having agreed to terms and condition herein after appearing and furnish a survey for
fulfillment of the obligation on his part and the surety has given his consent to the same.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The Employee shall become an employee of the Company as per details of the
appointment letter and remain employed with the Company with a minimum period of
12 months from the date of joining.
Signed __________________ Signed __________________
2. The Employee and the surety hereby jointly and severally agree and convent that:
(a) During the period of training with the company or any firm or factory under or in
which the employee undergoes training, the Employee shall faithfully, honestly
and diligently take training in such company, firm or factory, keep its secrets,
shall obey all its or its officers lawful orders and shall not directly or indirectly
take part or engage in other trade, business, service or occupation.
(b) The Employee shall confirm to the working hours, rules and regulations including
leave rules in the force of the company at all times.
(c) The Employee shall not waste or spoil the goods of the company nor without its
consent, lend, advance or dispose them off or any part thereof to nay person or
persons.
(d) The Employee shall serve the company or any associated or allied concern in such
capacity or post as the company or any of its officers shall decide, whose decision
shall be final and biding on the employee.
(e) The Employee shall work in the company for a period of minimum 12 months on
the terms and condition of this agreement(herein after called "the period of
service")
3. (a) If the Employee leaves the service of the company including absconding without
the permission of the company (or without any cause justifiable in the option of the
company) during the period of service he/she shall pay the company an amount of
Rs.One lac only
(b) If the Employee leaves the service of the company without permission of the
company during the period of the service including absconding he shall pay to company a
sum of Rs.One lac to cover the expenses incurred by the company on his/her account
including the salary and the wages paid during the period, training cost and the
opportunity cost of business that could be generated .
(d) During the said term of period of service whether the employee be in the employment
of the company or not for any part of time either individually or in any other manner and
wither directly or indirectly ,work negotiate or enter the service of or be employed with
or accept any consultation or supervision work or be interested in or concerned with any
person firm or company or body of persons whether incorporated or not ,carrying on or
engage or interest itself or themselves in any business ,trade,vocation,calling or
occupation of a like or similar nature with that of the company.
Signed __________________ Signed __________________
4. (a) It the Employee shall willfully disobey the lawful and reasonable orders of the
company and the firm or factory under or in which he undergoes training and or its
officers or shall persist in the opinion of the company, firm or factory in absenting
himself from her place of work without leave except in case of illness or accident or shall
otherwise wrongly conduct himself or is found taking part in any movement of
propaganda which is detrimental to the interest of the company or fail to make sufficient
progress in her training or work or is found applying or negotiating for employment
outside or shall be guilty of nay misconduct or shall be engaged or concerned either as
principal or agent in any betting transaction or shall draw ,make or accept or otherwise
render himself liable under bill of exchange, Promissory note of guarantee or shall
neglect to give her whole and attention to the business of the company or commit any
breach of terms of this agreement, the company or the firm or the factory may summarily
discharge and dismiss bathed employee from the service forthwith. Upon such
termination the employee and the surety shall be jointly and severally liable to refund to
the company the expenses incurred by the company on her account for training including
salary and wages paid to him during the training period with the company and the firm or
factory and the amount incurred for this passage to and fro and the amount equal to her
salary for six months prior to such termination and shall jointly and severally be liable for
all losses and damages incurred or sustained by the company with the permission of this
agreement.
(b) The Employee shall not during or after termination of this agreement canvass solicit
interfere with or entire away person,. who shall at any time during the continuance of the
Employees employment hercunder have been in the employment and/or in the business
relations with the Company
(C) If in the opinion of the Company or the firm or factory under or in which the
Employee undergoes training, the Employee on account of illness or other
reasonable clause is unable to perform her duties satisfactorily the Company ma
discharge the Employee.
5. (a) The liability of the Surety under this agreement shall or co-extensive with that of
the Employee and shall not in any way be affected at any time given to employee. waiver
or alteration of any terms o this agreement or otherwise or indulgence of any nature of
kind whatsoever giver-, made or show-. by the company to or in favor of the employee
and to all intents and purposes the liability of such surety for payment of all sums of
moneys under this agreement shall be deemed to be that of a principal party jointly and
severally liable with the Employee.
(b) The surety also agrees to make good the company all losses or damages suffered
by the company through any breach by the employee of the terms and conditions of
this agreement or arising out of his employment with the Company.
(c) This agreement shall be construed as having been made at Delhi and that the
rights and liabilities of the parties hereto in case a dispute arises shall be decided by
the Court at Delhi or the appropriate court having jurisdiction and shall be construed
according to the law for the time being in force.
Signed __________________ Signed __________________
(d) In the event of any dispute or difference that may arise between the parties
relation to this agreement the same can be amicably resoled by referring to arbitration
in. terms of Sec, 7 of the Arbitration and Conciliation Act, 1996 and the
award/decision of the arbitrator/s shall be binding on both the parties. In the event
of arbitrators not coming to any conclusion, it is agreed to refer the dispute to the
High Court at Delhi (mention the location of the High Court) in India.
(e) In addition to the payment of the amount specified as above, the Employee and the
surety hereby agree and undertake to indemnify the Company against all claims legal
fees and any other costs that may be incurred related to or arising upon a breach of
this agreement.
IN WITNESS whereof the said Employee ......, Surety
Shri _______________________________ and the said <<< Employer>>>> have hereinto set their hands and seals hereinto the day and the
year first above written.
For XYZ
Employee
Director Name:__________________
Date : _________________
Witness: SURETY
1.________________ Name:________________
Date_________________
2.________________
Signed __________________ Signed __________________
From India, Delhi
Hi Mona,
The way this legal document is drafted it has certain discrepancies:
Please verify the following queries :
1. Tenure of this agreement: Here the tenure of this agreement is not clear if it is minimum 12 months or is it valid throughout your service tenure say 2-3 years with the organization.
2. Does this agreement lapses after 12 months?
3. What happens if the employer terminates your services unilaterally ?
Agree this is one sided agreement wherein the company is protecting its interests vis a vis the investment on training.
Regarding the enforceability - please let me the answers to the above 3 points.
Regards,
Rajat Joshi
From India, Pune
100The way this legal document is drafted it has certain discrepancies:
Please verify the following queries :
1. Tenure of this agreement: Here the tenure of this agreement is not clear if it is minimum 12 months or is it valid throughout your service tenure say 2-3 years with the organization.
2. Does this agreement lapses after 12 months?
3. What happens if the employer terminates your services unilaterally ?
Agree this is one sided agreement wherein the company is protecting its interests vis a vis the investment on training.
Regarding the enforceability - please let me the answers to the above 3 points.
Regards,
Rajat Joshi
From India, Pune
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Bond of Employment.doc
Bond in employment.pdf