Hi guys,
I am Naveen, working in one of the MNC companies. I joined the company as a fresher and trainee. They have imposed a bond period of 4 years on me. If I break the bond, I will have to pay 2 lakh.
I am wondering if bonds are still valid nowadays, or if I can leave the company before completing the 4 years without having to pay the money.
Please clarify, guys.
From India, Madras
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I am Naveen, working in one of the MNC companies. I joined the company as a fresher and trainee. They have imposed a bond period of 4 years on me. If I break the bond, I will have to pay 2 lakh.
I am wondering if bonds are still valid nowadays, or if I can leave the company before completing the 4 years without having to pay the money.
Please clarify, guys.
From India, Madras
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4 years is pretty unheard of actually. But if your company had collected your original certificates, they may refuse to give them back until you complete the bond or pay the penalty for bond breaking.
Secondly, they can hold back your experience letter if you have not completed your bond period or paid the bond breaking penalty.
If you leave without completing your bond period or paying the bond breaking penalty, then the company will not complete your full and final settlement and, in such a case, any money that the company owes you will not be paid. You may have to struggle to get your PF amount and all.
If your employment records are noted as full and final settlement pending, it may also affect reference checks in the future.
Kindly consider all these points before you enter into or break an employment bond.
From India, Mumbai
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8Secondly, they can hold back your experience letter if you have not completed your bond period or paid the bond breaking penalty.
If you leave without completing your bond period or paying the bond breaking penalty, then the company will not complete your full and final settlement and, in such a case, any money that the company owes you will not be paid. You may have to struggle to get your PF amount and all.
If your employment records are noted as full and final settlement pending, it may also affect reference checks in the future.
Kindly consider all these points before you enter into or break an employment bond.
From India, Mumbai
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Firstly, you should try to determine whether it is a one-sided bond or a two-sided bond. If it is a two-sided bond, then you have to comply with the terms and conditions. However, if it is a one-sided bond, then it is illegal.
Regards,
Taksh
From India, Delhi
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Regards,
Taksh
From India, Delhi
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Hi guys, thanks for your replies.
Hi reshmipillai, they didn't collect any original certificates from me. My only doubt is if I break the bond, do I have to pay money to the company or not?
Taksh, please tell me what a one-side or two-side bond is.
From India, Madras
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Hi reshmipillai, they didn't collect any original certificates from me. My only doubt is if I break the bond, do I have to pay money to the company or not?
Taksh, please tell me what a one-side or two-side bond is.
From India, Madras
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One-Sided Bond:
If you leave the company, then you have to pay the amount mentioned in the terms & conditions of the bond. However, if the company decides to terminate you, they can do so.
Two-Sided Bond:
If you leave the company, you have to pay the amount specified in the terms & conditions of the bond. Additionally, if the company terminates you, they also have to pay the amount mentioned in the terms & conditions of the bond.
From India, Delhi
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If you leave the company, then you have to pay the amount mentioned in the terms & conditions of the bond. However, if the company decides to terminate you, they can do so.
Two-Sided Bond:
If you leave the company, you have to pay the amount specified in the terms & conditions of the bond. Additionally, if the company terminates you, they also have to pay the amount mentioned in the terms & conditions of the bond.
From India, Delhi
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Bond of Employment.doc
Bond in employment.pdf