Can employee leave the job during probation period without any notice if he/she has signed bond for 1 year with company.
From India, New Delhi
1From India, New Delhi
If employee sign appointment letter, in which mentioned service agreement point with 1 year bond of Rs 50,000 then will it be valid or not without stamp paper agreement. In this condition, If employee leave the job without any written notice then what will be rights have company.
From India, New Delhi
From India, New Delhi
Hi
Naveen,
As per my knowledge, Notice Period needs to be served. What is notice period mentioned, 1month or More then that? Bond is of INR 50,000 & is against 1year service. Generally , if someone wish to leave a company without serving Notice Period, (without a bond also), then he/she must show a valid reason(I mean such reason's due to which it is not possible at all to continue with service). Sometimes, in that case Employee needs to buy notice period from the company to avoid "Absconding" & this is actual procedure as per LAW.
In your case, since you have signed a bond, Company can Claim "Compensation" by legal means which they would suffer if you don't server notice period.
I would suggest, I your main objective is to leave:
1. Sit, with HRD & have a negotiation.
2. Say a valid reason, for which you cant continue with the service.
3. Try to convince them to buy notice period or Pay INR 50,000, before return.
4. Important point to be consider, if any one prove that he/she is medically unfit to continue with the service for long period or Nature of Job is impacting negatively on health, then on Medical Ground, company have to accept unconditional resignation (hardly matter bond signed or not signed), As, no organization cant force anyone to work & take risk with life, which can be considered as " Provocation in Death" .
Thanks & Regards
Sovik Bhattacharjee
MBA -HR & Finance
MD, S.S ENTERPRISE
From India, Mumbai
Naveen,
As per my knowledge, Notice Period needs to be served. What is notice period mentioned, 1month or More then that? Bond is of INR 50,000 & is against 1year service. Generally , if someone wish to leave a company without serving Notice Period, (without a bond also), then he/she must show a valid reason(I mean such reason's due to which it is not possible at all to continue with service). Sometimes, in that case Employee needs to buy notice period from the company to avoid "Absconding" & this is actual procedure as per LAW.
In your case, since you have signed a bond, Company can Claim "Compensation" by legal means which they would suffer if you don't server notice period.
I would suggest, I your main objective is to leave:
1. Sit, with HRD & have a negotiation.
2. Say a valid reason, for which you cant continue with the service.
3. Try to convince them to buy notice period or Pay INR 50,000, before return.
4. Important point to be consider, if any one prove that he/she is medically unfit to continue with the service for long period or Nature of Job is impacting negatively on health, then on Medical Ground, company have to accept unconditional resignation (hardly matter bond signed or not signed), As, no organization cant force anyone to work & take risk with life, which can be considered as " Provocation in Death" .
Thanks & Regards
Sovik Bhattacharjee
MBA -HR & Finance
MD, S.S ENTERPRISE
From India, Mumbai
And Naveen, as said,
Try to buy Notice period or Pay INR 50,000, before returning from HRD(Human Resource Department), because its hardly matter whether bond is signed in Stamp Paper or Letter Head of Company, value will be there, up to certain extent under law.
But, yes, alternative legal procedure is also there, because as per our Constitution no one can force any one to work. Bonded Labor system is not there in India, in this case also you need to send " Resignation Letter", but this time will be via legal methods, like via Postal Services & then paying INR 50000, by Chaque/ DD etc. So, that their exist a hard evidence that you paid INR 50,000. Anyway, even under this scenario , company cant ask compensation more the INR 50,000 because they have already calculated that if you leave , without serving notice period within 1year, so maximum loss they need to bear would be INR 50,000, so they had arranged such bonds.
But from experience, under such situation is best tool is " Negotiation ", as company also know that they cant force an employee to work & if they do that, productivity will be hampered along with associated problems like (Poor Morale, Grievance, Misbehavior, etc). So not only they will face all this challenges, they may loose more employees.
Thanks & Regards
Sovik Bhattacharjee
MBA- HR & Finance
MD- S.S ENTERPRISE
From India, Mumbai
Try to buy Notice period or Pay INR 50,000, before returning from HRD(Human Resource Department), because its hardly matter whether bond is signed in Stamp Paper or Letter Head of Company, value will be there, up to certain extent under law.
But, yes, alternative legal procedure is also there, because as per our Constitution no one can force any one to work. Bonded Labor system is not there in India, in this case also you need to send " Resignation Letter", but this time will be via legal methods, like via Postal Services & then paying INR 50000, by Chaque/ DD etc. So, that their exist a hard evidence that you paid INR 50,000. Anyway, even under this scenario , company cant ask compensation more the INR 50,000 because they have already calculated that if you leave , without serving notice period within 1year, so maximum loss they need to bear would be INR 50,000, so they had arranged such bonds.
But from experience, under such situation is best tool is " Negotiation ", as company also know that they cant force an employee to work & if they do that, productivity will be hampered along with associated problems like (Poor Morale, Grievance, Misbehavior, etc). So not only they will face all this challenges, they may loose more employees.
Thanks & Regards
Sovik Bhattacharjee
MBA- HR & Finance
MD- S.S ENTERPRISE
From India, Mumbai
Well, in such situations, you need to follow the what is mentioned and agreed as per emplyment/appointment letter as if mentioned their you don' have to serve notice period if you leave in the probation period then you can go for the same otherwise go with whatever agreed in the bond.
From India, Lucknow
From India, Lucknow
Hi Naveen,
There are two aspects of your question. One leaving a job during probation and second leaving the job before completion of bond period of one year or payment of Rs. 50,000/- in lieu of the same.
Leaving during probation period is governed by a condition in your appointment letter regarding Leaving/Termination of your service and notice period required for the same. As in your case there is a bond of one year it has to be seen that this bond is against what, for example is it against the investment on your training etc. done by the company. For an agreement to stand true in the court of law it has to be proven by the organization that they have spent equal or more amount on you (please don't consider salary I it as it is paid for the work you have done for the organization) and want to recover the cost in case you leave them before stipulated span.
In case such not is the case, please go ahead with resigning and leaving organization as per the condition of your appointment letter during probation period. Please ensure that the resignation is served in a legal manner i.e. you have proof of such a submission. However in case the organization has spent money on you it will be unethical, immoral and unprofessional to leave then in between, although in case you want to leave them still, please sit with HR to have the best deal and leave them amicably without creating any legal hassles for future.
Best of Luck.
Thanks and Regards
From Pakistan
There are two aspects of your question. One leaving a job during probation and second leaving the job before completion of bond period of one year or payment of Rs. 50,000/- in lieu of the same.
Leaving during probation period is governed by a condition in your appointment letter regarding Leaving/Termination of your service and notice period required for the same. As in your case there is a bond of one year it has to be seen that this bond is against what, for example is it against the investment on your training etc. done by the company. For an agreement to stand true in the court of law it has to be proven by the organization that they have spent equal or more amount on you (please don't consider salary I it as it is paid for the work you have done for the organization) and want to recover the cost in case you leave them before stipulated span.
In case such not is the case, please go ahead with resigning and leaving organization as per the condition of your appointment letter during probation period. Please ensure that the resignation is served in a legal manner i.e. you have proof of such a submission. However in case the organization has spent money on you it will be unethical, immoral and unprofessional to leave then in between, although in case you want to leave them still, please sit with HR to have the best deal and leave them amicably without creating any legal hassles for future.
Best of Luck.
Thanks and Regards
From Pakistan
W.R.T to Couvery's & LUCKYMAN 1000's comment, I would like to share a similar situation that I faced recently, dealing with a Civil Engineer. With him, I had a bond of 3years & is of value INR 700000, Notice Period: 3months. Reason being that person use to have 25years of experience & worked in companies like SIMPLEX, HCC etc. Now, his compensation needs to be shared, else situation cant be understood, his monthly salary was INR 98,000 pm. Though he was hired by one of my Client, but Client took my opinion, reason being we were supposed to close & complete the project, by 6months from LDE of that engineer (which would be difficult task without his presence).
When I asked GM of my Client(I was dealing with him), who hired this person, his reply was Corporate HR Head. So, we decided to have a phone conference with him(Corporate HR Head). Now, corporate HR head, was not at all interested to speak with me as his age was about 55years & I am a guy of 26years, basically it is my First High value project, (I belong to a business family), and prior this I had only IT/ITES experience & not in construction/Building material /Real Estate Industry. Finally, as per order of GM, he was forced to go for a tele conference.
When I asked him, what was the reason behind such bond/agreement? His reply was 1. Retention- as senior engineers with such experience are hard to get. 2.Minimising Risk associated with quick resignation.
I told, him is it practically possible to retain someone by a so called employment bond? Because if a person, decide to leave we cant stop him as per LAW. If we try to do that, he will just go for a petition in Court & would say, I got a better offer, why should I miss it? Legally he would claim, Employment Bond is made to minimize Risk associated with business as there is a Cost Involve & business loss involve if he leave suddenly. But, legally if a employment is made, Bond has a value associated . That value signifies " The Loss business is going to suffer due to his sudden leave/resignation with 3years". This is true for all employment bond. So, whatever happens, company cant charge more then INR 700000 or 3months salary of notice period , which ever is maximum( in this case it would be bond value). So, if a person is ready to pay Bond Value (Compensation), by what means you are going to stop him? Yes, you can go to court & suit him, harass him, but at the end, you need to face anger of magistrate because the person is ready to compensate you for you loss & you have made such agreement calculating the loss for time period of 3years. Only Government Agency can take action & compel to force an employee to work if there is an emergency affecting Public's essential requirement & national security.
Then Corporate HR head said, this is not correct, in anger. I replied politely, you are absolutely correct but whenever there is a conflict between Morale & Law, we have to go by law. Else we would end up in paying compensation. Secondly, I told, if he does not want to work & don't want to pay, then also you can retain him, but what will be the use? He will be not satisfied & may have a grudge. He may never use his talent or potential upto maximum extent, which will result in poor performance & associated problem. What would you do then?, its very difficult to prove by law that a person is not giving his best ,intentionally. You, can take measure, like Cut from incentives etc. But, the actual problem will never be solved. He can make delay in the project, & we have to be like viewer.
Later, my clients Lawyers rather legal firm, also confirmed the same. Post that we went for a negotiation, I simply said to him , give us 1month time so that we can find someone of yours potential & in the mean time kindly handover all project details to your immediate Junior, make him understand & share details with him how to complete the project within time. Later, on his LDE, that engineer thanked me as, he resigned because his daughter is suffering from Blood Cancer & he needs to relocate. I only said, I understand your feeling as a father & would surely do business with you in future. But, kindly share your ph# with us so that if we face any problem with the project, we can consult with you & its a request. He agreed. And fortunately, this project is Over & on Nov 27, I am moving to North -east, just to close it officially.
I am not very good with figures, KPI, HR Policies, but I always had passion to become a HR. Practically, I am fortunate as I got opportunity to interact with some good HR Leaders of MNC's, . But I have learnt one lesion, in order to manage business successfully, we must understand psychology of employees & consider human factor with importance first, be it of employees or dealing with clients or vendors. I can count stars in the sky & sands on earth, so I can get my work done from anyone with his free consent by understanding his/ her psychology. This is business.
From India, Mumbai
When I asked GM of my Client(I was dealing with him), who hired this person, his reply was Corporate HR Head. So, we decided to have a phone conference with him(Corporate HR Head). Now, corporate HR head, was not at all interested to speak with me as his age was about 55years & I am a guy of 26years, basically it is my First High value project, (I belong to a business family), and prior this I had only IT/ITES experience & not in construction/Building material /Real Estate Industry. Finally, as per order of GM, he was forced to go for a tele conference.
When I asked him, what was the reason behind such bond/agreement? His reply was 1. Retention- as senior engineers with such experience are hard to get. 2.Minimising Risk associated with quick resignation.
I told, him is it practically possible to retain someone by a so called employment bond? Because if a person, decide to leave we cant stop him as per LAW. If we try to do that, he will just go for a petition in Court & would say, I got a better offer, why should I miss it? Legally he would claim, Employment Bond is made to minimize Risk associated with business as there is a Cost Involve & business loss involve if he leave suddenly. But, legally if a employment is made, Bond has a value associated . That value signifies " The Loss business is going to suffer due to his sudden leave/resignation with 3years". This is true for all employment bond. So, whatever happens, company cant charge more then INR 700000 or 3months salary of notice period , which ever is maximum( in this case it would be bond value). So, if a person is ready to pay Bond Value (Compensation), by what means you are going to stop him? Yes, you can go to court & suit him, harass him, but at the end, you need to face anger of magistrate because the person is ready to compensate you for you loss & you have made such agreement calculating the loss for time period of 3years. Only Government Agency can take action & compel to force an employee to work if there is an emergency affecting Public's essential requirement & national security.
Then Corporate HR head said, this is not correct, in anger. I replied politely, you are absolutely correct but whenever there is a conflict between Morale & Law, we have to go by law. Else we would end up in paying compensation. Secondly, I told, if he does not want to work & don't want to pay, then also you can retain him, but what will be the use? He will be not satisfied & may have a grudge. He may never use his talent or potential upto maximum extent, which will result in poor performance & associated problem. What would you do then?, its very difficult to prove by law that a person is not giving his best ,intentionally. You, can take measure, like Cut from incentives etc. But, the actual problem will never be solved. He can make delay in the project, & we have to be like viewer.
Later, my clients Lawyers rather legal firm, also confirmed the same. Post that we went for a negotiation, I simply said to him , give us 1month time so that we can find someone of yours potential & in the mean time kindly handover all project details to your immediate Junior, make him understand & share details with him how to complete the project within time. Later, on his LDE, that engineer thanked me as, he resigned because his daughter is suffering from Blood Cancer & he needs to relocate. I only said, I understand your feeling as a father & would surely do business with you in future. But, kindly share your ph# with us so that if we face any problem with the project, we can consult with you & its a request. He agreed. And fortunately, this project is Over & on Nov 27, I am moving to North -east, just to close it officially.
I am not very good with figures, KPI, HR Policies, but I always had passion to become a HR. Practically, I am fortunate as I got opportunity to interact with some good HR Leaders of MNC's, . But I have learnt one lesion, in order to manage business successfully, we must understand psychology of employees & consider human factor with importance first, be it of employees or dealing with clients or vendors. I can count stars in the sky & sands on earth, so I can get my work done from anyone with his free consent by understanding his/ her psychology. This is business.
From India, Mumbai
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