Leaving a New Company After Signing a Bond: Legal Considerations and Recommendations
Recently, an employee joined a company 15 days ago and signed a bond. They now question whether they can leave the company without paying any amount or if they are required to pay a sum to terminate the bond. This article explores the legal implications and advises on the best course of action.
Understanding Employment Bonds
Employment bonds, also known as service agreements, are contractual arrangements that aim to prevent employees from leaving their employer within a specified period without incurring financial penalties. In India, these bonds must be reasonable to be enforceable, a term that remains undefined in legal texts. The Supreme Court of India has ruled that such bonds are not legally enforceable if they are not reasonable.
Legal Considerations
According to laws, an employment bond must cover a specific period during which the employee must serve the company. If you joined the company just 15 days ago, it would be difficult for your employer to prove any significant expenditure on your training or orientation. Therefore, it is highly unlikely that an Indian court would enforce a bond that was signed only 15 days ago.
Salary and Bond Conditions
Before terminating your bond, it is crucial to consider the following:
Salary received: If you have drawn any salary during the 15 days, you might still be bound to fulfill the terms of the bond. Training and costs: Has your employer provided any job orientation or training that would incur costs? Understanding this will help determine the enforceability of the bond.Typically, courts do not enforce one-sided bonds, especially if the employer has not provided reasonable compensation or training. However, some smaller companies may attempt to enter into one-sided agreements to capitalize on the lack of experience of job seekers.
Recommendations for Termination
The most advisable action is to pay the bond amount as required by your employment agreement. If you proceed without paying, it could impact your future career, especially in the realm of background verification (BGV) and work permit visa processing for some countries.
Options If You Cannot Pay the Bond
Here are some options if you cannot afford to pay the bond:
Apply for a reduction: Negotiate with your employer to reduce the bond amount. Some companies might be willing to compromise, especially if you are still a new employee. Resign with a written notice: Serve a formal resignation letter with a notice period, as specified in your offer letter. This shows professional integrity and commitment. Seek alternate employment: Focus on finding new job opportunities while resolving the bond issue with your current employer.One of the options your friend took was to abscond, which has led to some friction. However, it’s important to note that:
Paying no bond: If you abscond, you won’t be required to pay the bond amount, but you won’t receive an experience letter either. Employer's goodwill: A 15-day gap is often acceptable, especially if you have not received a salary or undergone any significant training.Ultimately, it is advisable to follow the legal advice and ensure that you address the bond issue responsibly to avoid any complications in your professional career.
Conclusion
Leaving a company after signing a bond can be a complex process. Understanding the legal implications and your company's policies is crucial. While paying the bond amount is typically the best course of action, negotiating or seeking alternate solutions can also be viable. Always prioritize your professional integrity and future career prospects.