Hi All I had joined a small software firm over a 7 months back as PHP Developer after working with one small organisation for 19 months . I had signed a commitment bond for 2 year on plane print out offer letter not on bond paper. I getting many interview calls for better package. My guys are not going to hike my small salary till March 2012. I want to break this bond. Please help me guys. Is this kind of bonds are legal since i not signed on bond paper.
1. Contractual Bond
1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates. In consideration, thereof, you hereby agree that notwithstanding anything to the contrary herein, you shall not terminate your employment with the company for a period of two (2) years with effect from the date of your joining XYZ Technologies. In the event that you terminate employment with the company prior to the expiry of the aforesaid two (2) years, you shall repay to the company immediately the sum equivalent to your monthly salary multiplied by the remaining number of months calculated as from the date of termination until the expiry of the aforesaid two-year period.
2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.
2.2 You may at any time terminate this agreement after Contractual Bond period by giving in writing to company 2 months notice or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.
As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate And the technology used is open source.I want to break this bond for better opportunities. Please help me.
From India, Bangalore
1. Contractual Bond
1.1 You will be required to attend special training and courses arranged by the company. You acknowledge that this is necessary for you to acquire the proper skills and expertise to carry out the duties of your employment, in particular, in respect of software development projects for the company, XYZ Technologies and its affiliates. In consideration, thereof, you hereby agree that notwithstanding anything to the contrary herein, you shall not terminate your employment with the company for a period of two (2) years with effect from the date of your joining XYZ Technologies. In the event that you terminate employment with the company prior to the expiry of the aforesaid two (2) years, you shall repay to the company immediately the sum equivalent to your monthly salary multiplied by the remaining number of months calculated as from the date of termination until the expiry of the aforesaid two-year period.
2. Termination of Employment
2.1 Company may at any time terminate this agreement by giving in writing to you 1 month notice during your probationary period or 2 months notice after confirmation or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.
2.2 You may at any time terminate this agreement after Contractual Bond period by giving in writing to company 2 months notice or in lieu thereof a sum equal to the amount of salary which would have been accrued to you during the period of notice.
As mentioned in 1.1 they have not provided any training or course as I am an experienced candidate And the technology used is open source.I want to break this bond for better opportunities. Please help me.
From India, Bangalore
Hi Anitha,
The employment bond is still legal as it is signed by the competent authority along with the company stamp/seal plus your signature is also being made as token of acceptance.(Most of the bonds are made in this way or on company letter heads)
Now if you have made the sign before the matter was written i.e, on the plain paper it will still be considered as Legal Bond.As its a mistake from your side.
Even if you go to court of law with the same issue, it will not be easy to defend yourself with that excuse.
Now as you said that you are not given the training etc... as written on the bond,You have every right to terminate the contract as company violated the terms and conditions.
Speak to your authorities regarding the same thing and get the contract terminated on mutual understanding basis or esle say that you are going to court of law for settlement.
Regards,
Manoj Devda
Accounts and Hr Manager
68The employment bond is still legal as it is signed by the competent authority along with the company stamp/seal plus your signature is also being made as token of acceptance.(Most of the bonds are made in this way or on company letter heads)
Now if you have made the sign before the matter was written i.e, on the plain paper it will still be considered as Legal Bond.As its a mistake from your side.
Even if you go to court of law with the same issue, it will not be easy to defend yourself with that excuse.
Now as you said that you are not given the training etc... as written on the bond,You have every right to terminate the contract as company violated the terms and conditions.
Speak to your authorities regarding the same thing and get the contract terminated on mutual understanding basis or esle say that you are going to court of law for settlement.
Regards,
Manoj Devda
Accounts and Hr Manager
Hi Again,
Just to keep you more motivated......
In India Bond is illegal as follows
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’s amounting to the violation of the rights mentioned under Article 19.
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 Bonds are one sided.
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 its is enforced and if performed would violate principles of natural justices.
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. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The court also has stated 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, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.
Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.
Hope it will help you.
Note:Sharing what is shared on CiteHR
Just to keep you more motivated......
In India Bond is illegal as follows
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’s amounting to the violation of the rights mentioned under Article 19.
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 Bonds are one sided.
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 its is enforced and if performed would violate principles of natural justices.
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. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The court also has stated 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, as the company is not a actual living entity but legal entity and the management are hands and heads of the company.
Bonds are applicable only if the company has spend money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.
Hope it will help you.
Note:Sharing what is shared on CiteHR
Hi mani_pooja,
Your First Answer really scared me.But Second One given little relax.Still I have few small doubts . Can You please clear me .
1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?
As I have told ,I have not undergone any kind of training from third party and not got any kind of economical benfits from company.
2. Legally there will be any imprisonment for breaking bond?
3. Still whether they can force me to work even after breaking Bond and I not have will do .
4. There will be any black listing kind of thing In India which may spoil my future career.
I hope you can understand my anxiety and traumatic condition I may be undergoing.Please clear these small doubts.
From India, Bangalore
Your First Answer really scared me.But Second One given little relax.Still I have few small doubts . Can You please clear me .
1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?
As I have told ,I have not undergone any kind of training from third party and not got any kind of economical benfits from company.
2. Legally there will be any imprisonment for breaking bond?
3. Still whether they can force me to work even after breaking Bond and I not have will do .
4. There will be any black listing kind of thing In India which may spoil my future career.
I hope you can understand my anxiety and traumatic condition I may be undergoing.Please clear these small doubts.
From India, Bangalore
Hi Anitha,
Your Answers are below-
1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?
Ans:Yes,24 months - 7 months=17months*monthly pay=compensation
2. Legally there will be any imprisonment for breaking bond?
Ans-The query shows you are very afraid.Anyways there is nothing to happen,If you pay the above compensation amount (I strongly feel that's not going to be the situation as I said earlier you have every right to the break bond If the agreement terms and conditions are violated by the company)
3. Still whether they can force me to work even after breaking Bond and I not have will do .
Ans-The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
4. There will be any black listing kind of thing In India which may spoil my future career.
Ans-There is black listing In India,It will be done in case of theft or fraud done by employee but surely not for such a small issue like breaking contract because there are many who does if the contract is not placed properly.
You have a bright future.....
I feel you are very much worried and afraid to do anything that's the reason you get all these NEGATIVE thoughts.
All I can say is-KEEP IT SIMPLE,SILLY
Your Answers are below-
1. Since Bond is two year period and I worked for 7 months. Whether they can claim remaining months salary as a compensation from me?
Ans:Yes,24 months - 7 months=17months*monthly pay=compensation
2. Legally there will be any imprisonment for breaking bond?
Ans-The query shows you are very afraid.Anyways there is nothing to happen,If you pay the above compensation amount (I strongly feel that's not going to be the situation as I said earlier you have every right to the break bond If the agreement terms and conditions are violated by the company)
3. Still whether they can force me to work even after breaking Bond and I not have will do .
Ans-The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
4. There will be any black listing kind of thing In India which may spoil my future career.
Ans-There is black listing In India,It will be done in case of theft or fraud done by employee but surely not for such a small issue like breaking contract because there are many who does if the contract is not placed properly.
You have a bright future.....
I feel you are very much worried and afraid to do anything that's the reason you get all these NEGATIVE thoughts.
All I can say is-KEEP IT SIMPLE,SILLY
Dear Anita,
Pooja has given the correct answer with all the legal implications.
Now let me clarify you in very simple manner again-
You have signed the contract based on certain conditions. The employer has not fulfilled it like specialised training and all. Hence your bond has become invalid and this will not be valid under the court of law. You just follow the resignation rules and they have to accept or you can take legal action against them.
No need to worry go ahead
I thanks and commend Pooja for clarifying you with so much patience.
god bless all
From India, Secunderabad
Pooja has given the correct answer with all the legal implications.
Now let me clarify you in very simple manner again-
You have signed the contract based on certain conditions. The employer has not fulfilled it like specialised training and all. Hence your bond has become invalid and this will not be valid under the court of law. You just follow the resignation rules and they have to accept or you can take legal action against them.
No need to worry go ahead
I thanks and commend Pooja for clarifying you with so much patience.
god bless all
From India, Secunderabad
Thanks mani_pooja,
For Your patience and clearing my last three doubts.But regarding my first question ,your answer paused my breath for a second. I am still in dilemma regarding the same . I would like to tell you that they had not violated any rules and about training they stated that only if necessary then I have to undergo for it. Why I should have to give compensation to them when the Bond itself is Invalid? Why they can claim money from me? even if they claim ,they have to provide the sufficient reasons for it that they had spent on me na?. At present situation I cant able to give such huge amount as a compensation and I cant be slave for small salary when opportunities dancing in front of my eyes. This is the most traumatic thing that every employee may be facing who had bonded to bond. Please guide me in this regard. I read on many discussions that even if company claims compensation they have to provide sufficient reasons that they had spent on candidate. But all those discussions are 3-4 years old. So I need help regards. Thanks in advance.
From India, Bangalore
For Your patience and clearing my last three doubts.But regarding my first question ,your answer paused my breath for a second. I am still in dilemma regarding the same . I would like to tell you that they had not violated any rules and about training they stated that only if necessary then I have to undergo for it. Why I should have to give compensation to them when the Bond itself is Invalid? Why they can claim money from me? even if they claim ,they have to provide the sufficient reasons for it that they had spent on me na?. At present situation I cant able to give such huge amount as a compensation and I cant be slave for small salary when opportunities dancing in front of my eyes. This is the most traumatic thing that every employee may be facing who had bonded to bond. Please guide me in this regard. I read on many discussions that even if company claims compensation they have to provide sufficient reasons that they had spent on candidate. But all those discussions are 3-4 years old. So I need help regards. Thanks in advance.
From India, Bangalore
Hello anithamb,
Manoj Devda has given you the right perspective as far as the effectiveness of the Bond is concerned IN YOUR CASE.
However, it seems to me that you have your priorities a bit 'mixed-up'.
Your MAIN GROUSE in this Company is: less salary & the next hike being in March, 2012. Why not HANDLE IT DIRECTLY instead of ASSUMING things--that you can't get the hike now?
Since Employment Bond is, by & large, illegal & tough to implement legally, many companies adopt the strategy of having a Bond for some Training or such reasons & then getting the Bond signed for this reason, rather than for employment [I remember seeing another thread recently in CiteHR about a person signing a Bond for 6 month overseas training--when he was called back after just 2 weeks, & that was for 4 L]. Your company seems to have adopted the same approach. IF...REPEAT IF.....one of you decide to go legal, you have the facts in your favour--THAT YOU WEREN'T GIVEN ANY TRAINING.
But at the same time, pl note that it's easier for the company to handle the legal route [even if YOU go legal] since they can handle it financially AND have someone to handle the issue in the courts--their lawyer. I am looking @ the worst-case scenario--if you mention the flaw in their Bond [about not being given any training], MOST-LIKELY they will only get alerted & IF they want to fleece the money from you [quite probable--since they might not want to set a precedence to other employees], they will begin to make efforts to cook-up something to show that you WERE GIVEN training. Do you see where this COULD be leading to? Is it worth your time, effort & money [to hire your lawyer]? I have not even taken into account the time our Indian courts take to decide--either way--in a case.
You mentioned:I getting many interview calls for better package. But that doesn't mean you have SOMETHING IN HAND. And until you have something IN HAND, it means nothing.
Suggest begin to appear for interviews. And then when you get an Offer in hand--WHICH YOU FIND GOOD--then go to your HR and BARGAIN [showing the Offer or not to them depends on the situation then]. That's the time for you to mention about the Training--or the lack of it. Since you have an offer in hand, the HR would most likely respond to hike your salary NOW. If the hike you get here is good--by your standards--then maybe you can stay back?
And if & when you mention about the training issue, pl mention it confidently--which will convey the impression that you did your homework about taking legal advice & are prepared to go the whole hog, IF NEEDED. Whether you go or not isn't & will not be the issue--it's WHAT YOU CONVEY & WHAT THEY PERCEIVE that will be the issue.
Also, you haven't mentioned how much will the Balance 17 month salary come to--IF you have to pay back the Bond money. Since you mentioned your salary is low, another way of looking @ it is: if you get an Offer with a REAL good hike, maybe it's better to pay back & then go freely without any future headaches? [We handled one such case recently--the guy was getting 16 K p.m. & he got an Offer for 30K p.m. & his Bond money worked out to 46K--he preferred to pay back, since it was just 2-3 months salary]. See the point?
Like they say: Every problem has MULTIPLE options/solutions--it all depends on which direction we see.
All the Best.
Rgds,
TS
From India, Hyderabad
Manoj Devda has given you the right perspective as far as the effectiveness of the Bond is concerned IN YOUR CASE.
However, it seems to me that you have your priorities a bit 'mixed-up'.
Your MAIN GROUSE in this Company is: less salary & the next hike being in March, 2012. Why not HANDLE IT DIRECTLY instead of ASSUMING things--that you can't get the hike now?
Since Employment Bond is, by & large, illegal & tough to implement legally, many companies adopt the strategy of having a Bond for some Training or such reasons & then getting the Bond signed for this reason, rather than for employment [I remember seeing another thread recently in CiteHR about a person signing a Bond for 6 month overseas training--when he was called back after just 2 weeks, & that was for 4 L]. Your company seems to have adopted the same approach. IF...REPEAT IF.....one of you decide to go legal, you have the facts in your favour--THAT YOU WEREN'T GIVEN ANY TRAINING.
But at the same time, pl note that it's easier for the company to handle the legal route [even if YOU go legal] since they can handle it financially AND have someone to handle the issue in the courts--their lawyer. I am looking @ the worst-case scenario--if you mention the flaw in their Bond [about not being given any training], MOST-LIKELY they will only get alerted & IF they want to fleece the money from you [quite probable--since they might not want to set a precedence to other employees], they will begin to make efforts to cook-up something to show that you WERE GIVEN training. Do you see where this COULD be leading to? Is it worth your time, effort & money [to hire your lawyer]? I have not even taken into account the time our Indian courts take to decide--either way--in a case.
You mentioned:I getting many interview calls for better package. But that doesn't mean you have SOMETHING IN HAND. And until you have something IN HAND, it means nothing.
Suggest begin to appear for interviews. And then when you get an Offer in hand--WHICH YOU FIND GOOD--then go to your HR and BARGAIN [showing the Offer or not to them depends on the situation then]. That's the time for you to mention about the Training--or the lack of it. Since you have an offer in hand, the HR would most likely respond to hike your salary NOW. If the hike you get here is good--by your standards--then maybe you can stay back?
And if & when you mention about the training issue, pl mention it confidently--which will convey the impression that you did your homework about taking legal advice & are prepared to go the whole hog, IF NEEDED. Whether you go or not isn't & will not be the issue--it's WHAT YOU CONVEY & WHAT THEY PERCEIVE that will be the issue.
Also, you haven't mentioned how much will the Balance 17 month salary come to--IF you have to pay back the Bond money. Since you mentioned your salary is low, another way of looking @ it is: if you get an Offer with a REAL good hike, maybe it's better to pay back & then go freely without any future headaches? [We handled one such case recently--the guy was getting 16 K p.m. & he got an Offer for 30K p.m. & his Bond money worked out to 46K--he preferred to pay back, since it was just 2-3 months salary]. See the point?
Like they say: Every problem has MULTIPLE options/solutions--it all depends on which direction we see.
All the Best.
Rgds,
TS
From India, Hyderabad
Thanks tajsateesh,
For your details. I am getting 17k per month. and getting calls for offer of 22-25k. if I have to give compensation then its 17*17 k. My question is why and how they can claim such amount of money when the sources are open source and no third party training.Which law provides them right to claim the compensation?. Its just 5 member company.I am confident that I will get good offer package than this looking at the technology trend. But I am only worried about such slave bond.please suggest me remedy for it.
From India, Bangalore
For your details. I am getting 17k per month. and getting calls for offer of 22-25k. if I have to give compensation then its 17*17 k. My question is why and how they can claim such amount of money when the sources are open source and no third party training.Which law provides them right to claim the compensation?. Its just 5 member company.I am confident that I will get good offer package than this looking at the technology trend. But I am only worried about such slave bond.please suggest me remedy for it.
From India, Bangalore
Hello anithamb,
Let's face it---didn't you know that the software is open-source WHEN YOU SIGNED THE BOND? I am sure you knew--anyone associated with the S/W industry knows that fact. Then WHY DID YOU SIGN THE BOND IN THE FIRST PLACE? Because IT SUITED YOU at that time--you desperately wanted a job.
And now when it's INCONVENIENT FOR YOU [because other companies are offering you more], you want this Forum to suggest a way to break it--legally? If you were in the company's place, how would you react/respond?
THAT you are seeking advice from this Forum IS NOT WRONG, but I feel the REASONS & INTENT YOU ARE SEEKING FOR ARE, PER SE, WRONG.
In general, it's ALWAYS easy to throw the blame on others, but quite often we fail to observe how [or why] WE made a contribution for a situation. The moment we analyze a situation from this angle, other options emerge.
Coming to your confidence of getting calls for offers of 22-25K, maybe it won't be difficult for THIS company to match that figure--it's just about 30-45% hike? IF YOUR PERFORMANCE HAS BEEN VERY GOOD here, getting this sort of a hike when someone resigns or attempts to resign is NOT very difficult. For all I know, you may not even need to raise the fact that no training has been given to you. No Company wants to loose a person who WORKS & DELIVERS.
W.r.t. another aspect you clarified--you say that the employee strength is only 5. So that COULD point to 2 facts: (1) they can't afford to loose anyone. (2) if you come out with a logical & reasonable bargain figure--once you have an offer in hand--they, MOST LIKELY, will NOT say no.
Rgds,
TS
From India, Hyderabad
Let's face it---didn't you know that the software is open-source WHEN YOU SIGNED THE BOND? I am sure you knew--anyone associated with the S/W industry knows that fact. Then WHY DID YOU SIGN THE BOND IN THE FIRST PLACE? Because IT SUITED YOU at that time--you desperately wanted a job.
And now when it's INCONVENIENT FOR YOU [because other companies are offering you more], you want this Forum to suggest a way to break it--legally? If you were in the company's place, how would you react/respond?
THAT you are seeking advice from this Forum IS NOT WRONG, but I feel the REASONS & INTENT YOU ARE SEEKING FOR ARE, PER SE, WRONG.
In general, it's ALWAYS easy to throw the blame on others, but quite often we fail to observe how [or why] WE made a contribution for a situation. The moment we analyze a situation from this angle, other options emerge.
Coming to your confidence of getting calls for offers of 22-25K, maybe it won't be difficult for THIS company to match that figure--it's just about 30-45% hike? IF YOUR PERFORMANCE HAS BEEN VERY GOOD here, getting this sort of a hike when someone resigns or attempts to resign is NOT very difficult. For all I know, you may not even need to raise the fact that no training has been given to you. No Company wants to loose a person who WORKS & DELIVERS.
W.r.t. another aspect you clarified--you say that the employee strength is only 5. So that COULD point to 2 facts: (1) they can't afford to loose anyone. (2) if you come out with a logical & reasonable bargain figure--once you have an offer in hand--they, MOST LIKELY, will NOT say no.
Rgds,
TS
From India, Hyderabad
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Enforcement of negative covenants in employment terms.pdf