Legal Question in Employment Law in India

Sir/Mam

My company is asking me to enter into a "Surety bond" The terms state that

1.I will serve the organization for 18 Month on fixed salary and i wont be able to leave the organization.

2.after 12 month again a new bond for 18 month will be signed and i will have a window of one month to decide.

3.This bond is on plane a4 paper.

4.There is no training cost involved. Company is saying they want to be sure i will serve for one year.

5.I am already 1 year old employee and this bond is being introduced from this year.(a new policy)

6.Company deducts no PF.

7.I wont be able to avail new opportunities.

My question, 1.is this a valid to force new bond which was previously not there?

2.If there is no training cost can they force my employment duration legally ?


Asked on 4/23/13, 11:21 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

24.04.2013

Dear Sir / Madam,

Your Company is adopting a draconian policy to ask employees to sign a Surety Bond / Performance Bond. Bonded labour is illegal in India and all the employees should clearly tell the Management that they will not sign any such bond.

1. The Company cannot force existing employees to sign a Performance Bond.

2. The Company has no legal right to force an employee to work for a fixed term period. The notice period as mentioned in your appointment letter will only be applicable.

The Company is not worth working for. Looking out for a new job opportunity is recommended.

Regards,

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Answered on 4/24/13, 3:35 am
Rajiv Chandhok Ph: +919810050896 https://www.linkedin.com/in/rajiv-chandok-0827b733/

Ans.1- They can do it.

Ans.2- They cannot force you as it is not a money bond. But if you leave the job in between then they might not give you a relieving letter.

To know us better, please click on the links below:

http://www.linkedin.com/pub/rajiv-chandhok/33/7b7/82

http://www.lawguru.com/answers/atty_profile/view_attorney_profile/username#more_info

JSR/25413

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Answered on 4/24/13, 11:18 pm


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