My daughter was selected as a developer by a software company in campus selection. Call letter is not received yet. They may ask for a service bond for 2 years.
My daughter is in a dilemma , whether to join or not. She has not got any offer from any other company far.
Valuable guidance is solicited.
From India, Kozhikode
My daughter is in a dilemma , whether to join or not. She has not got any offer from any other company far.
Valuable guidance is solicited.
From India, Kozhikode
Hello N K Raveendran,
This more of a personal decision than anything else.
But a few aspects/points that may help you arrive @ a well-informed decision.
1] Pl conduct a due-diligence about the company--is it a stable & well-established one?
2] Best would be to speak to some employees from whom you can get first-hand info about the general work environment/culture & whether they get salaries in-time--an indication of the company stability..
3] Usually ONLY Bonds associated with any sort of formal & REAL Training are legal--any other type of Bonds are illegal--though many companies just get it signed to bring-in a sense of 'mental bonding' from the employee-end. Everyone knows that not many employees who signup have the time, money & scope to go legal--given the timeframes associated with our legal system. So the companies take advantage of this aspect.
Looking @ it from another angle, it's always good for the fresher to stay with a single company for at least 2-3 yrs--for 2 reasons:
1] It takes at least a year or so for anyone to BEGIN TO GET PRODUCTIVE--after he/she has learnt the tricks of the trade, so to say. So effectively, the employee has just 1 year of USABLE experience from the II company's perspective [IF he/she leaves after 2 yrs].
2] The general perception that such an employee [who leaves earlier than ~2 yrs--except in unforeseen circumstances, like company closure, etc] gives is that of an indecisive and/or uncommitted and/or 'jumping-jack' nature. Obviously, not good for anyone in the long-term perspective.
Hope this helps.
Rgds,
TS
From India, Hyderabad
1641This more of a personal decision than anything else.
But a few aspects/points that may help you arrive @ a well-informed decision.
1] Pl conduct a due-diligence about the company--is it a stable & well-established one?
2] Best would be to speak to some employees from whom you can get first-hand info about the general work environment/culture & whether they get salaries in-time--an indication of the company stability..
3] Usually ONLY Bonds associated with any sort of formal & REAL Training are legal--any other type of Bonds are illegal--though many companies just get it signed to bring-in a sense of 'mental bonding' from the employee-end. Everyone knows that not many employees who signup have the time, money & scope to go legal--given the timeframes associated with our legal system. So the companies take advantage of this aspect.
Looking @ it from another angle, it's always good for the fresher to stay with a single company for at least 2-3 yrs--for 2 reasons:
1] It takes at least a year or so for anyone to BEGIN TO GET PRODUCTIVE--after he/she has learnt the tricks of the trade, so to say. So effectively, the employee has just 1 year of USABLE experience from the II company's perspective [IF he/she leaves after 2 yrs].
2] The general perception that such an employee [who leaves earlier than ~2 yrs--except in unforeseen circumstances, like company closure, etc] gives is that of an indecisive and/or uncommitted and/or 'jumping-jack' nature. Obviously, not good for anyone in the long-term perspective.
Hope this helps.
Rgds,
TS
From India, Hyderabad
Further to my query of 20th inst, I may add that my daughter has received the offer letter from the employer company. She is selected as developer. I am not clear as to the nature of duty. Is it development of business and marketing? The software company offers support to mobile companies like Aircel. Can anybody clarify? More over there is a probationary period of 6 months when the salary is Rs.15000 which will be increased to Rs.20000 after probation.Is the salary on the lower side?
Regarding the 2 year bond, the bond amount is Rs.1 lakh. Some conditions of the contract are given below
Quote
CONTRACT OF EMPLOYMENT
When you sign this offer letter document, it is assumed that you commit to stay with the Company for a minimum period of 2 years, unless your services are terminated by company. In case you wish to disassociate yourself from the Company before completing your two years, then you commit that you will pay a minimum amount of Rs. 100,000 (Hundred Thousand Rupees) in lieu of early disassociation with the company. In case you do not pay this amount and decide to leave then in such case company shall not issue
you Service Certificate, Relieving letter and other such documents and at the same time all your existing dues with the company if any, shall not be cleared by the company. You are always required to give a minimum of twelve week’s written notice to the company for your termination of employment with the company.
Termination
The Company may terminate your employment with the Company by giving you two week’s written notice of termination if you are still in the probationary period or twelve week’s written notice of termination in case of permanent employment, or salary in lieu thereof.
In case you wish to disassociate with the Company then you are required to give a minimum of twelve week’s written notice to the company for your termination of employment with the company. However this (twelve weeks notice period for disassociation with the company) will only be applicable in case you have successfully completed your two years of employment with the company.
The Company will not be liable to pay the notice pay if you resign from its services and request that you be relieved with immediate effect. Your resignation will become effective and final notwithstanding the fact that the communication of acceptance does not reach you. However, in case any disciplinary proceedings are either contemplated or pending against you, the Company will have the right not to accept your resignation.
The Company reserves the right to terminate your employment without notice, or pay in lieu of notice where you are found to have committed an act of gross misconduct.
Your employment with the Company will terminate automatically without any further notice at the Company’s normal retirement age, which is on the day of your 60th birthday.
On termination of your employment, you will immediately deliver to the Company all equipment, software, original and copies of documentation (including documentation stored in electronic format) and any other property belonging to the Company, which is in your possession, or under your control.
In the event, if you are absent from work for 24 hours or more, then you are forthwith required to notify company about your absence along with reasons for the absence from work. However, if you are absent from work for a period of five (5) consecutive working days without providing any notice or affording any reasons or without taking company’s prior approval in this regard, company shall be entitled to forthwith terminate your employment without providing any notice or incurring any obligation or liability to pay any amount or dues to you. Further, in the event of such termination, you shall be liable to pay company and amount equivalent to your two (2) month’s current gross salary. This shall not restrict company from claiming legal remedies available to it under ordinary legal recourse. Company shall be entitled to recover any additional damages from you in a manner that company may determine suitable in this regard.
Unquote
Kindly provide yur valuable opinion on the above aspects.
Thanks in advance.
Regards
(N K Raveendran)
From India, Kozhikode
Regarding the 2 year bond, the bond amount is Rs.1 lakh. Some conditions of the contract are given below
Quote
CONTRACT OF EMPLOYMENT
When you sign this offer letter document, it is assumed that you commit to stay with the Company for a minimum period of 2 years, unless your services are terminated by company. In case you wish to disassociate yourself from the Company before completing your two years, then you commit that you will pay a minimum amount of Rs. 100,000 (Hundred Thousand Rupees) in lieu of early disassociation with the company. In case you do not pay this amount and decide to leave then in such case company shall not issue
you Service Certificate, Relieving letter and other such documents and at the same time all your existing dues with the company if any, shall not be cleared by the company. You are always required to give a minimum of twelve week’s written notice to the company for your termination of employment with the company.
Termination
The Company may terminate your employment with the Company by giving you two week’s written notice of termination if you are still in the probationary period or twelve week’s written notice of termination in case of permanent employment, or salary in lieu thereof.
In case you wish to disassociate with the Company then you are required to give a minimum of twelve week’s written notice to the company for your termination of employment with the company. However this (twelve weeks notice period for disassociation with the company) will only be applicable in case you have successfully completed your two years of employment with the company.
The Company will not be liable to pay the notice pay if you resign from its services and request that you be relieved with immediate effect. Your resignation will become effective and final notwithstanding the fact that the communication of acceptance does not reach you. However, in case any disciplinary proceedings are either contemplated or pending against you, the Company will have the right not to accept your resignation.
The Company reserves the right to terminate your employment without notice, or pay in lieu of notice where you are found to have committed an act of gross misconduct.
Your employment with the Company will terminate automatically without any further notice at the Company’s normal retirement age, which is on the day of your 60th birthday.
On termination of your employment, you will immediately deliver to the Company all equipment, software, original and copies of documentation (including documentation stored in electronic format) and any other property belonging to the Company, which is in your possession, or under your control.
In the event, if you are absent from work for 24 hours or more, then you are forthwith required to notify company about your absence along with reasons for the absence from work. However, if you are absent from work for a period of five (5) consecutive working days without providing any notice or affording any reasons or without taking company’s prior approval in this regard, company shall be entitled to forthwith terminate your employment without providing any notice or incurring any obligation or liability to pay any amount or dues to you. Further, in the event of such termination, you shall be liable to pay company and amount equivalent to your two (2) month’s current gross salary. This shall not restrict company from claiming legal remedies available to it under ordinary legal recourse. Company shall be entitled to recover any additional damages from you in a manner that company may determine suitable in this regard.
Unquote
Kindly provide yur valuable opinion on the above aspects.
Thanks in advance.
Regards
(N K Raveendran)
From India, Kozhikode
Dear Mr. Raveendran,
You have not mentioned whether this bond has any mention about some training to be given. If yes then the bond amount depends upon the quality of the training and the money spent by the management on it. Please inform regarding it in order to let us access the situation better.
From India, New Delhi
You have not mentioned whether this bond has any mention about some training to be given. If yes then the bond amount depends upon the quality of the training and the money spent by the management on it. Please inform regarding it in order to let us access the situation better.
From India, New Delhi
Dear Raveendran,
Our fellow member Taj Satheesh had given you an understanding about your initial query, which is certainly concise. About the salary part, what they have mentioned is quiet a good salary, considering the fact that there are many college pass outs, still looking for a job, since 2011. If the employer is forcing for a 2 year bond, that will not be an issue, as your daughter will be earning as well as learning in her initial period.
Initial 2 years will help your daughter in enhancing her platform skills. Provided the company track record should be healthier. As Taj has recommended, you can touch base with few employees in the same organization through Linkedin, to get a better clarity on the case. However if you can share the company's name through a PM, I will try to check the track record, if possible.
From India, Bangalore
Our fellow member Taj Satheesh had given you an understanding about your initial query, which is certainly concise. About the salary part, what they have mentioned is quiet a good salary, considering the fact that there are many college pass outs, still looking for a job, since 2011. If the employer is forcing for a 2 year bond, that will not be an issue, as your daughter will be earning as well as learning in her initial period.
Initial 2 years will help your daughter in enhancing her platform skills. Provided the company track record should be healthier. As Taj has recommended, you can touch base with few employees in the same organization through Linkedin, to get a better clarity on the case. However if you can share the company's name through a PM, I will try to check the track record, if possible.
From India, Bangalore
My dear Kamal Kant Tyagi, The company has not mentioned anything about training. Only the probation period is 6 months. Regards, N K Raveendran.
From India, Kozhikode
From India, Kozhikode
Dear Mr. Raveendran,
As there is no mention about any sort of training they cannot legally force your daughter to work for them for 2 years. However she have to give 3 months (12 weeks) notice to the company before parting her ways with the company. Also as suggusted by Mr. Tajsateesh it is advisible to work in a company for atleast 2 years as it is best for her career point of view. Legally bond is not enforseable.
From India, New Delhi
As there is no mention about any sort of training they cannot legally force your daughter to work for them for 2 years. However she have to give 3 months (12 weeks) notice to the company before parting her ways with the company. Also as suggusted by Mr. Tajsateesh it is advisible to work in a company for atleast 2 years as it is best for her career point of view. Legally bond is not enforseable.
From India, New Delhi
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Employer suit for breaking service bond within 3 yrs - Delhi HC 5.9.2014.pdf