Tied with an employment bond

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Most of my friends who are working and planning to quit will know that resigning from a job is much more difficult than even finding one. At least you have nothing on stake and nothing to lose in the latter, i.e. when you are finding a job.

Most companies these days get you to sign a employment bond at the time of joining. Some also do it at a later stage. The employees have no resort than to sign on the dotted line. The bond wordings can differ, but in all cases they will act as obstacles to free mobility in jobs. Some of the typical clauses in a common employment bond are:

  1. If you leave job, you will have to give a 1/2/3 months notice.
  2. You cannot join a company that is into a similar line of business. (How ridiculous! One will only join a company that he/she has experience of working in).
  3. You will have to pay to the company a particular sum if you are leaving the organisation.

If you plan to adhere to the company’s policy, you will keep sticking to the company for as many years until the organisation someday throws you out. No, they may feel like keeping you if you have really licked your boss hard.

Here are the top reasons why it is so difficult to leave a job:

  1. The companies that you interview at will want you to join office immediately. If you said your notice period was 3 months, they would seldom consider your candidature. (Isn’t that biased on the part of companies. They will not allow their own employees to leave without notice. But they surely lure employees from other companies to break the policy.)
  2. If you think of quitting by giving a three months notice without a job in hand, is there a guarantee that you will secure one after the notice period expires?
  3. It’s difficult to leave job even if you plan to leave without adhering to the notice policy. Come let’s see how that can be problematic.
  • Your organisation sues you in the court for breaching the employee contract.
  • All relations with past employer are broken and soured.
  • You are barred from entering into the organisation for once and for ever.
  • If you had some money due on the organisation, forget it.
  • And the worse thing to happen to any person who’s planning to be in employment forever – if any organisation finds that there is a case running against you for breaching an employment contract, forget that they would give you a job. It’s rational on their part: if you left your last organisation, you may also leave them. So why do they hire you?

So how do you leave without waiting eternally and without paying the huge compensation amount. Here are some interesting ways:

  1. Go beg the boss for letting you go. There are 50-50 chances that you will be freed of the shackles of employment. A side effect can be that your employer knows of your intention to resign. From this day onwards, he will keep an extra vigil on you.
  2. Just disappear one fine day. Leave no traces of where you could be found. Do your homework first. Check that you have left no permanent addresses where any court notice could be sent. If you have a phone number, disable it. This is just like when you are escaping the police for murder charges.
  3. Fight the case valiantly. In india, a majority of the cases are in the favour of employees. Section 27 (excuse me if i am wrong in citing the section) says that people have right to choose their profession.
  4. Also not all companies pursue breach of employment contract case.

So what method will you go for when quitting job. I would have liked to go for the first one but don’t think that my boss is so soft hearted. Even now he enquires if there was an interview call if I take a day’s leave from office. Please suggest how I quit job.

This article is also available on Ezinearticles.com.

10 thoughts on “Tied with an employment bond

  1. Hi,
    The best thing what I have observed is that companies sometimes are ready to but notice periods. You would have to work this out with your new employers, that they shell off money to your current organisation to get your relieving done soon or you loose money to get the new hype.

  2. Dear Readers,

    I had a wonderful experience with my previous employers :P.
    After I had put down my papers, I was made clear that I receive my relieving letter, conditioned I complete the project I was currently into. I strived hard and the one which was extimated to be developed in 3 months was over in just 19 days and few nights.

    It was 19th of Sept I had my tickets ready to travel back home.
    4:30 pm I spoke to the HR… Is my experience certificate and relieving letter ready… Van…. No it isn’t she had not heard anything from the manager to prepare for my relieving formalities. I walked into SS'(manager) cabin.

    Hi…. Today is my last day here. Could you please get my letters ready.

    ….Sand….” you are relieved from your responsibilities today but you would get your letters only after you complete the documentation that is pending for the work that you have done, also would need a written confirmation from AJ….. that he is ok with the handover that you have given.
    We had bad experiences earlier which has forced us to be stringent on these terms.”

    Well…. I had to cancel my tickets, did lose money there, worked on the weekend. Thanks to AJ and KS for coming to office on the weekend to support me. KS insisted on getting an oral conf with the SS that I had done the documentation and AJ was also happy with the handover, I would get my tickets done for Monday evening and would expect him to give me the releaving letter on Monday morning.

    Well he agreed and got my letter too. But to all this;….. I lost 14000 in all these ….

  3. Wow! This is very shocking…and I was under the impression that employment bonds had been abolished. Is it legal to have such bonds? I don’t know much about the legal system but this for sure doesn’t seem fair. How do these corporations get away with this?
    I live in Canada and most companies here request that you give them a 2 week notice out of courtesy but no one is going to slap a court case on you for quitting on the spot. How do the companies justify this?

  4. Forcing or using other coercive methods like bond to bind employees is not the right way to go to prevent attrition.

  5. I was a govt. employee. During my carrier in the department , I was deputed for a foreign training for 12 weeks . This training was sponsored by USA. During my training I got $35 per day as per dm. For this training department took a bond from me and bond conditions was to serve the department for 3 years after training or pay Rs 5 lakhs. I resigned from the department after 1 year from the completions of the training . Department took Rs 5 lakhs from me for violations of the bond. I requested the department for partial reduction of the bond money as I served the department for 1 year after the training. But dept . not accepted this request and I paid Rs 5 lakh as a bond money , After that I went to RTI for obtaining the information about bond money how deprtment fixed Rs 5 Lakhs, I got reply that they have written the figure approximately, But they don’t know actual amount spend on training because this amount was totally paid by USA. During my services in the department I was considered as a temporary employee . I have proof for that one proof is I was resigned from job on one month notice period ,that is applicable for temporary employee, Second after this training , I requested for No objection certificate from the department regarding making of personal passport , in NOC letter it is clearly written that I was temporary employee .But most important thing in my case is that bond heading was “ Bond for permanent govt. employees proceeding for training “ I t means this was for permanent employees only. Can you suggest to me wheather this bond was applicable to me or not . How to recover the money , which I have paid to the department.



    • that was a really bad thing that happened in your case anil. i mean how can they take such a big amount, that too after u left after 1 year of completing the training.

      before discussing your problem, let me tell u frankly that i am no authority in this. in fact i too m bound by a three months notice. but i know one thing. in india nad at any other place of the free world, there is no such law that can keep u bounded. in india there’s section 27 which expressly prohibits any kind of forcible labour.

      so if i wud have been at ur place, i wouldn’t have given any money to the company. if they wud hav threatened me of court cases, i wud have told them to go ahead. believe me, most such cases are in favor of the employees. and even if the court wud hav ruled that u pay something in lieu of the training that the company has provided to u, it wud have been much lesser than 5 lakhs.

      so just check wid some good labour lawyer to see if anything can be done now. I hope that it’s not very late. My best regards with u.

  6. this methods of skipping bond is kool…
    please give more about legal executability on quitting job in between the the bond period as per Indian law.

    Thank You

    • Hey Abhishek, I am not from the legal field. It was just that I had signed on a bond and so had these cool ideas in mind. Unfortunately I was never able to dare break that bond and had to bear a big loss of money.

  7. Pingback: Working in a pajama « ItyaAdi

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