What happens if you break a service bond?

If an employment bond is breached, the employer might be entitled to compensation. The compensation awarded should be reasonable to compensate the loss and should not exceed the penalty, if any stipulated in the contract.

What is a training bond agreement?

Training Bond is the amount to be repaid by the officer or employee to the. Company representing the actual cost of the training or seminar in case of.

Can I join another company during notice period in India?

But you can join the new company only once the notice period is over. However, in case the new company signs an agreement with your current one and buys out the notice period you are free to join the new company. Many companies believe that it serves no purpose keeping an employee for three months on notice period.

Is training bond legal?

The money spent should be for the employee’s training, not just because of hiring him. Some employers argues that the bond is the cost of hiring him. This is illegal. The Law clearly states that any expense in hiring a person should be the expense of the employer.

Are training bonds enforceable?

On the face of it, a bond agreement will be binding in law and thus enforceable should its terms be broken. To be valid, the training must have taken place, and we take the view that if the pilot has not received any benefit, the contract may be difficult to enforce.

Are training agreements enforceable?

A training agreement is a legally enforceable contract that sets out the terms and conditions of any training that you provide your employees. Repayments are usually on a sliding scale, so the longer an employee remains at a company after training, the less they are eligible to repay.

Can a company require an employee to sign a bond period?

Hence a case where the company has spent a lot of time and money in training the Employee in return for which the Employee signs a bond for a period of 1 year would be seen as a reasonable restriction. The same however cannot be said in a case where the company without giving any consideration requires the Employee to sign a bond period.

What is an employment bond and how does it work?

The Employment Bond is basically an agreement which the company and the employee enter into which among the other terms contained therein states that in consideration of the training given to the Employee and the money spent by the company in imparting such training, the Employee will remain in the services of the company for a particular period.

What happens if an employee fails to pay a bond amount?

A demand notice for the bond amount should be issued to the Guarantor also. Should the Employee fail to pay the amount a suit may be filed in the Court of appropriate jurisdiction to recover the amount due.

Are binding bonds of employment legal in India?

Bonds, binding employees to an employer for a period of time, are not legal in India. By the parlance of justice, no company can make employees sign bonds of employment. The legal framework has endorsed that the relationship between an employee and employer is no longer a slave-master relationship. Those days are gone.