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Author Topic: Employment bond and penalty  (Read 848 times)

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Offline Abhi030210

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Employment bond and penalty
« on: July 26, 2016, 12:54:35 PM »
 :( I am an employee working in an IT company. I joined the organisation 6 months ago. At the time of joining I was informed by the HR that the Job would be on a particular technology but after signing a service bond of one year and on the first day, I learned that there was no process on that technology at all. After multiple concerns being raised the manager and HR concluded that its not their mistake and they cant do anything. After 2 months they offered me a chance to travel to the USA. I confirmed on the job again and was informed it would be a core technical job. It was informed to us that the training would be given to 6 members but only 4 would be selected.They made us to sign a bond for 1.6 years and a sum of 3.75 lac in case of breach of contract. the contract read that it would be for so and so process and the work location would be Pune.I wasn't selected for the process. The organisation is now asking me to go to Pune and work on a different project which is no where in the contract and despite my ill health after returning from USA. I have suffered severe ill health after returning and have doctor prescriptions and lab tests for my health reports.Even though I told them that my health isn't supporting to stay at Pune as I would be having no caretakers, the organisation says the client who paid for the training is asking the amount to be refunded which has been invested on me for the training as I am not willing to work from Pune. I do not understand why they are asking for all the money invested on me and not the according to the contract (just saying...though it is not mentioned)There was no clause mentioned in the contract of working at Pune despite not being selected for the project. I do not understand, on what basis they are forcing me to work or refund the money. This has been conveyed to me as part of a HR meeting and not yet documented and notice has been given to me yet. Please advice me what to do next. Is this argument and bond actually valid???

Offline riteshmaity

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Re: Employment bond and penalty
« Reply #1 on: July 30, 2016, 12:23:05 AM »
Transfer to Pune is a service condition. You cannot object to it irrespective of your personal issues. But if you can convince the HR, then there is nothing better than that.

Regarding the bond, a company can recover the exact amount they have spent on you for special training and nothing more than that. However, the exact content of the bond has to be considered before providing further advice.
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Offline lks

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Re: Employment bond and penalty
« Reply #2 on: August 02, 2016, 10:53:36 PM »
As per the Indian Statute bonded labor system was long abolished and no bond can force any person to work against the employees wishes

1. As per section 27 of the Contract Act, 1872, any agreement in restraint of trade or profession is void. Therefore, any terms and conditions of the agreement which directly or indirectly either compels the employee to serve the employer or restrict them from joining competitor or other employer is not valid under the law.

2. The employee, by signing a contract of employment, does not sign a bond of slavery and, therefore, the employee always has the right to resign the employment even if he has agreed to serve the employer for specific time period.

3. However if any clause inserted for recovery of cost for training the employee at abroad , or any cost invested in specific training may be recovered from the employee. ( SC also given some judgments favoring to collect the actual expenses accrued irrespective of the agreed amount.) (Sicpa India Limited v Shri Manas Pratim Deb)

4. Nobody can hold you if you are willing to join another company provided proper notice should be given as per the company policy/standing order/agreement .

5. 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.

6. 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 cannot hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.


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