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Author Topic: Company asking to sign a bond in middle of employement  (Read 246 times)

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Offline sud09

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Company asking to sign a bond in middle of employement
« on: April 25, 2016, 10:51:51 PM »
Hi

I am working in a startup from past 7 months. Now my company is asking to provide the documents(educational proofs) and to sign the joining kit which has clause (bond of 5 year period - cannot work with any other company of same domain and cannot start own business in same field).

They are threatening for salary and not providing the offer letter and appointment letter (In a mail Hr team clearly mentioned they will provide offer letter and appointment letter after signing kit i.e. bond).

Do let me know what I can do in this case.

Thanks

Offline riteshmaity

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Re: Company asking to sign a bond in middle of employement
« Reply #1 on: April 25, 2016, 11:13:03 PM »
REPLY IN BOLD

I am working in a startup from past 7 months. Now my company is asking to provide the documents(educational proofs) and to sign the joining kit which has clause (bond of 5 year period - cannot work with any other company of same domain and cannot start own business in same field).

Company can ask for documents (originals) for verification with photocopies during your employment. However, they cannot retain original documents of the employees with an intention to bind the employee.

Bond/ service agreement, prima facie, is illegal and an employer in certain conditions is only allowed to recover the cost of training imparted to an employee and nothing more than that. Bonded labour is illegal and unfair labour practice and as per Supreme Court judgements, a company at no cost can restrict you from joining a competitor/ similar job. 


They are threatening for salary and not providing the offer letter and appointment letter (In a mail Hr team clearly mentioned they will provide offer letter and appointment letter after signing kit i.e. bond).

If they are not paying salary, then you can approach appropriate forum to claim the salary. Regarding appointment letter, keep the email in tact as it will prove your appointment with the company in future, if required.


Even if you sign the bond for five years, and then leave the company before completion of the said five and in that case if the company sues you, chances are very high that you would win the case with flying colors.

But whether you have the time as well as money (legal expenses) for that is your person decision.  8)
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