I am a fresher and I have signed an employment bond of three years with a company.
Now I have sent this bond along with acceptance of offer to the company but I have not yet joined the company.
Here is the bond in question:
Employment Bond Agreement
This Employment Bond Agreement is entered into on this ______________ at XYZ (for the sake of brevity hereinafter referred to as
XYZ) a company incorporated under the provisions of Companies Act, 1956 having its
registered office at ABC (which expression shall unless repugnant to the context or meaning include
And Mr. ________________________ S/o. ______________, an Indian resident, aged about
____________, having permanent address at ______________ and currently residing at
______________ , having PAN _________________hereinafter referred to as the employee
(which expression shall unless repugnant to the context or meaning include its successors and
WHEREAS XYZ is the Company engaged in the business of PQR and
WHEREAS the Employee is employed with the XYZ as Trainee Software Engineer since
AND WHEREAS the Company based on the willingness, representation, request and promises
of the Employee; has agreed to spend valuable management time, efforts, scarce resources
and money for inculcating and developing the Employee as an employee of the requisites skills,
for continuing his employment with the Company.
AND WHEREAS the Company and the Employee voluntarily agrees that after the said Training
it is necessary for the Employee to work for the Company at least for a certain minimum period
in order to compensate the Company for the expenses incurred and other resources spent for
providing the said Training upon the terms and conditions stated hereinafter.
AND WHEREAS it is one of the conditions upon which the Employee would be imparted training
and offered employment is that the Employee must sign and submit the Employment Bond
Agreement within 15 (Fifteen) days from the date of receiving offer letter and must join
XYZ within given time and shall not leave the employment for any reason whatsoever or
XYZ must not have terminated his/her employment with XYZ for any reason
whatsoever for a period of 36 (Thirty Six) months from the date of commencement of the
employment; as a security for liquidated damages in case of breach of the condition mentioned
in this paragraph. This BOND shall remain valid till the completion of 36 (Thirty Six) months of
employment of candidate with XYZ.
AND WHEREAS the said employee is desirous to join XYZ and undergo XYZ’s training
program and hence has agreed to sign and execute this Employment Bond Agreement in the
favour of XYZ by making all necessary arrangement.
NOW THIS AGREEMENT IS WITNESSTH AS FOLLOWS:
1. Employee hereby undertakes to immediately pay to XYZ, Rs. 2,00,000/-
(Rs. Two Lakh only) by Account Payee Cheque/ Demand Draft drawn in the favour of XYZ
for liquidated damages; if Employee fails or refuses to join the XYZ after signing and
executing this Bond and within specified time or employee leaves the employment for any
reason whatsoever or XYZ terminates him/her from employment for any valid reason
whatsoever including but not limited to his / her misconduct, fraudulent / dishonest /
undisciplined / arrogant behavior, Uninformed absenteeism, irregularity in attending office,
misappropriation or misuse of any information or property of the company or it\'s clients /
associates, any kind of insubordination, any breach of company\'s policies or applicable
laws, very bad or poor work performance, embezzlement, an employee being declared
insolvent or convicted for the offence involving moral turpitude, if an employee involve
himself / herself in anything which is against the interest of the company and for such other
reasons of similar nature or otherwise which Company may think fit; before completion of 36
(Thirty Six) months from the date of commencement of the employment.
2. Employee hereby unconditionally and irrevocably guarantee and undertake that employee
shall sign and submit this bond in specified time and must join the XYZ in specified time
and shall not leave the employment for any reason whatsoever or XYZ must not have
terminated him / her from employment for any reason whatsoever including but not limited to
his / her misconduct, fraudulent / dishonest / undisciplined / arrogant behavior, Uninformed
absenteeism, irregularity in attending office, misappropriation or misuse of any information
or property of the company or it\'s clients / associates, any kind of insubordination, any
breach of company\'s policies or applicable laws, very bad or poor work performance,
embezzlement, an employee being declared insolvent or convicted for the offence involving
moral turpitude, if an employee involve himself / herself in anything which is against the
interest of the company and for such other reasons of similar nature or otherwise which
Company may think fit; before completion of 36 (Thirty Six) months from the date of
commencement of the employment.
3. If any condition mentioned in point 2 hereinabove is breached; then Employee agrees,
undertakes and unconditionally and irrevocably guarantees that it shall immediately pay the
XYZ the amount of to the tune of Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee
Cheque / Demand Draft drawn in the favour of XYZ. If specifically demanded by the
Company, Employee hereby undertakes to submit such cheque in advance to the Company,
and Company shall cash the same in case the employee breaches any terms of this
agreement and / or other employment rules.
4. The Employee hereto agree, confirm, accept at free will and undertake that if employee fails
or refuses to join the XYZ after signing this agreement and within specified time or leaves
the XYZ for any reason whatsoever and / or if XYZ terminates the employee for any
reason whatsoever as mentioned in the clauses above; before completion of 36 (Thirty Six)
months from the date of commencement of the employment; Employee shall immediately
without protest or demur and notwithstanding any contestation or existence of any dispute
whatsoever between XYZ and employee; pay to XYZ forthwith the sums so demanded.
5. Any neglect or forbearance or delay on the part of XYZ in enforcing it’s rights under this
agreement and / or any change in the terms and conditions mutually agreed between
XYZ and employee shall not in any way release or discharge the Employee from its
obligations and liabilities under this guarantee.
6. A demand/ communication/ notice in writing to the Employee by XYZ that there has been
default/ breach of the condition of employment by the employee shall be conclusive, final
and binding on the Employee and upon receipt of such demand/ communication/ notice in
writing, Employee shall immediately pay the XYZ a sum of Rs. 2,00,000/- (Rs. Two Lakh
Any communication / notice by way of request and demand or otherwise hereunder, may be
send by registered A.D. post or any other mode of communication including but not limited
e-mail, fax and courier to the same address of the Employee as aforesaid. If sent by
Registered Post it shall be deemed to have been given at the time when it Would have been
delivered in the course of Registered A.D. post and in providing such notice when given by
registered A.D. post shall be sufficient to prove that the envelope containing the notice was
posted and certificate signed by an office or XYZ that the envelope was posted shall
7. This guarantee shall be valid till 30/06/2018 or till the time demand is raised by XYZ and
payment is made by Employee, whichever is earlier.
8. This Agreement may be amended, supplemented or modified only by a written instrument
duly executed by or on behalf of each party hereto.
9. If any provisions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be
affected thereby. The parties agree to renegotiate in good faith any term held invalid and be
found by the mutually agreed substitute provision.
The parties hereto shall use their best efforts to settle amicably all disputes including any
unresolved controversy or dispute arising out of or in connection with the existence,
interpretation, performance, or termination of this Agreement, arising out of or in connection
with this Agreement (“Dispute”) in the manner specified in this Section.
The party raising the Dispute shall address to the other party a notice requesting an
amicable settlement of the Dispute.
The Dispute will be referred for resolution between the corresponding Authorized
personnel of either party. The Dispute will then be resolved by them and the agreed
course of action will be documented, within a period of ten business days from the
date of receipt of the reference.
In the event the Parties are not able to amicably resolve and settle the disputes /
differences under the procedure mentioned above, the dispute / difference shall be referred
to the arbitration by a single arbitrator to be jointly appointed. In the event the Parties fail to
concur in appointing the sole arbitrator, the arbitrator shall be appointed in accordance with
the provisions of the Arbitration & Conciliation Act. The arbitration shall be conducted in
accordance with the Arbitration & Conciliation Act, for the time being in force or any
statutory modification or re-enactment thereof. The place of Arbitration shall be
Mumbai. The language of the Arbitration shall be English. The award of the arbitrator shall
be final and binding upon the parties herein.
11. This Agreement shall be construed according to the law of India, and the parties submit to
the Jurisdiction of the Courts at Mumbai and Courts superior thereto.
12. Employee hereby states, agrees, and confirms that he / she has clearly understood the
provisions of this agreement and he / she accepts the same with clear understanding and at
his / her free will and accepts the same without any force, coercion, undue influence,
misrepresentation and mistake.
IN WITNESS WHEREOF, the parties have set their hands and executed this Guarantee
Agreement to be effective from the date mentioned on first page hereof.
Read, understood, accepted and confirmed:
Mr/Ms. _________________________________________ authorised representative of XYZ
Mr/Ms __________________________________________ the Employee
Now what I want to know
1. Is this bond legal and most importantly is this regarded a one-sided agreement?
2. Also I was supposed to send the bond with the acceptance of offer. I did send the acceptance but it wasn\'t what they sent me. I had a soft copy of it which had a watermark of the company and I printed that and sent. So the acceptance that I sent is not the original what I was supposed to send so is that valid?
Thanks in advance for your help
From India, Mumbai
Now I have sent this bond along with acceptance of offer to the company but I have not yet joined the company.
Here is the bond in question:
Employment Bond Agreement
This Employment Bond Agreement is entered into on this ______________ at XYZ (for the sake of brevity hereinafter referred to as
XYZ) a company incorporated under the provisions of Companies Act, 1956 having its
registered office at ABC (which expression shall unless repugnant to the context or meaning include
And Mr. ________________________ S/o. ______________, an Indian resident, aged about
____________, having permanent address at ______________ and currently residing at
______________ , having PAN _________________hereinafter referred to as the employee
(which expression shall unless repugnant to the context or meaning include its successors and
WHEREAS XYZ is the Company engaged in the business of PQR and
WHEREAS the Employee is employed with the XYZ as Trainee Software Engineer since
AND WHEREAS the Company based on the willingness, representation, request and promises
of the Employee; has agreed to spend valuable management time, efforts, scarce resources
and money for inculcating and developing the Employee as an employee of the requisites skills,
for continuing his employment with the Company.
AND WHEREAS the Company and the Employee voluntarily agrees that after the said Training
it is necessary for the Employee to work for the Company at least for a certain minimum period
in order to compensate the Company for the expenses incurred and other resources spent for
providing the said Training upon the terms and conditions stated hereinafter.
AND WHEREAS it is one of the conditions upon which the Employee would be imparted training
and offered employment is that the Employee must sign and submit the Employment Bond
Agreement within 15 (Fifteen) days from the date of receiving offer letter and must join
XYZ within given time and shall not leave the employment for any reason whatsoever or
XYZ must not have terminated his/her employment with XYZ for any reason
whatsoever for a period of 36 (Thirty Six) months from the date of commencement of the
employment; as a security for liquidated damages in case of breach of the condition mentioned
in this paragraph. This BOND shall remain valid till the completion of 36 (Thirty Six) months of
employment of candidate with XYZ.
AND WHEREAS the said employee is desirous to join XYZ and undergo XYZ’s training
program and hence has agreed to sign and execute this Employment Bond Agreement in the
favour of XYZ by making all necessary arrangement.
NOW THIS AGREEMENT IS WITNESSTH AS FOLLOWS:
1. Employee hereby undertakes to immediately pay to XYZ, Rs. 2,00,000/-
(Rs. Two Lakh only) by Account Payee Cheque/ Demand Draft drawn in the favour of XYZ
for liquidated damages; if Employee fails or refuses to join the XYZ after signing and
executing this Bond and within specified time or employee leaves the employment for any
reason whatsoever or XYZ terminates him/her from employment for any valid reason
whatsoever including but not limited to his / her misconduct, fraudulent / dishonest /
undisciplined / arrogant behavior, Uninformed absenteeism, irregularity in attending office,
misappropriation or misuse of any information or property of the company or it\'s clients /
associates, any kind of insubordination, any breach of company\'s policies or applicable
laws, very bad or poor work performance, embezzlement, an employee being declared
insolvent or convicted for the offence involving moral turpitude, if an employee involve
himself / herself in anything which is against the interest of the company and for such other
reasons of similar nature or otherwise which Company may think fit; before completion of 36
(Thirty Six) months from the date of commencement of the employment.
2. Employee hereby unconditionally and irrevocably guarantee and undertake that employee
shall sign and submit this bond in specified time and must join the XYZ in specified time
and shall not leave the employment for any reason whatsoever or XYZ must not have
terminated him / her from employment for any reason whatsoever including but not limited to
his / her misconduct, fraudulent / dishonest / undisciplined / arrogant behavior, Uninformed
absenteeism, irregularity in attending office, misappropriation or misuse of any information
or property of the company or it\'s clients / associates, any kind of insubordination, any
breach of company\'s policies or applicable laws, very bad or poor work performance,
embezzlement, an employee being declared insolvent or convicted for the offence involving
moral turpitude, if an employee involve himself / herself in anything which is against the
interest of the company and for such other reasons of similar nature or otherwise which
Company may think fit; before completion of 36 (Thirty Six) months from the date of
commencement of the employment.
3. If any condition mentioned in point 2 hereinabove is breached; then Employee agrees,
undertakes and unconditionally and irrevocably guarantees that it shall immediately pay the
XYZ the amount of to the tune of Rs. 2,00,000/- (Rs. Two Lakh only) by Account Payee
Cheque / Demand Draft drawn in the favour of XYZ. If specifically demanded by the
Company, Employee hereby undertakes to submit such cheque in advance to the Company,
and Company shall cash the same in case the employee breaches any terms of this
agreement and / or other employment rules.
4. The Employee hereto agree, confirm, accept at free will and undertake that if employee fails
or refuses to join the XYZ after signing this agreement and within specified time or leaves
the XYZ for any reason whatsoever and / or if XYZ terminates the employee for any
reason whatsoever as mentioned in the clauses above; before completion of 36 (Thirty Six)
months from the date of commencement of the employment; Employee shall immediately
without protest or demur and notwithstanding any contestation or existence of any dispute
whatsoever between XYZ and employee; pay to XYZ forthwith the sums so demanded.
5. Any neglect or forbearance or delay on the part of XYZ in enforcing it’s rights under this
agreement and / or any change in the terms and conditions mutually agreed between
XYZ and employee shall not in any way release or discharge the Employee from its
obligations and liabilities under this guarantee.
6. A demand/ communication/ notice in writing to the Employee by XYZ that there has been
default/ breach of the condition of employment by the employee shall be conclusive, final
and binding on the Employee and upon receipt of such demand/ communication/ notice in
writing, Employee shall immediately pay the XYZ a sum of Rs. 2,00,000/- (Rs. Two Lakh
Any communication / notice by way of request and demand or otherwise hereunder, may be
send by registered A.D. post or any other mode of communication including but not limited
e-mail, fax and courier to the same address of the Employee as aforesaid. If sent by
Registered Post it shall be deemed to have been given at the time when it Would have been
delivered in the course of Registered A.D. post and in providing such notice when given by
registered A.D. post shall be sufficient to prove that the envelope containing the notice was
posted and certificate signed by an office or XYZ that the envelope was posted shall
7. This guarantee shall be valid till 30/06/2018 or till the time demand is raised by XYZ and
payment is made by Employee, whichever is earlier.
8. This Agreement may be amended, supplemented or modified only by a written instrument
duly executed by or on behalf of each party hereto.
9. If any provisions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be
affected thereby. The parties agree to renegotiate in good faith any term held invalid and be
found by the mutually agreed substitute provision.
The parties hereto shall use their best efforts to settle amicably all disputes including any
unresolved controversy or dispute arising out of or in connection with the existence,
interpretation, performance, or termination of this Agreement, arising out of or in connection
with this Agreement (“Dispute”) in the manner specified in this Section.
The party raising the Dispute shall address to the other party a notice requesting an
amicable settlement of the Dispute.
The Dispute will be referred for resolution between the corresponding Authorized
personnel of either party. The Dispute will then be resolved by them and the agreed
course of action will be documented, within a period of ten business days from the
date of receipt of the reference.
In the event the Parties are not able to amicably resolve and settle the disputes /
differences under the procedure mentioned above, the dispute / difference shall be referred
to the arbitration by a single arbitrator to be jointly appointed. In the event the Parties fail to
concur in appointing the sole arbitrator, the arbitrator shall be appointed in accordance with
the provisions of the Arbitration & Conciliation Act. The arbitration shall be conducted in
accordance with the Arbitration & Conciliation Act, for the time being in force or any
statutory modification or re-enactment thereof. The place of Arbitration shall be
Mumbai. The language of the Arbitration shall be English. The award of the arbitrator shall
be final and binding upon the parties herein.
11. This Agreement shall be construed according to the law of India, and the parties submit to
the Jurisdiction of the Courts at Mumbai and Courts superior thereto.
12. Employee hereby states, agrees, and confirms that he / she has clearly understood the
provisions of this agreement and he / she accepts the same with clear understanding and at
his / her free will and accepts the same without any force, coercion, undue influence,
misrepresentation and mistake.
IN WITNESS WHEREOF, the parties have set their hands and executed this Guarantee
Agreement to be effective from the date mentioned on first page hereof.
Read, understood, accepted and confirmed:
Mr/Ms. _________________________________________ authorised representative of XYZ
Mr/Ms __________________________________________ the Employee
Now what I want to know
1. Is this bond legal and most importantly is this regarded a one-sided agreement?
2. Also I was supposed to send the bond with the acceptance of offer. I did send the acceptance but it wasn\'t what they sent me. I had a soft copy of it which had a watermark of the company and I printed that and sent. So the acceptance that I sent is not the original what I was supposed to send so is that valid?
Thanks in advance for your help
From India, Mumbai
Most of the agreement like this are one sided.
Obviously the company will like to have foolproof agreement.
Bond is legal to the extent that liquidated damages if challenged may not be Rs200000 but lower amount based on assessment of training expenditure incurred by company.
Secondly if you have made any changes to the clauses,the company is likely to reject the agreement.
Think carefully all angles and join.
If needed check with an advocate.
From India, Pune
3131Obviously the company will like to have foolproof agreement.
Bond is legal to the extent that liquidated damages if challenged may not be Rs200000 but lower amount based on assessment of training expenditure incurred by company.
Secondly if you have made any changes to the clauses,the company is likely to reject the agreement.
Think carefully all angles and join.
If needed check with an advocate.
From India, Pune
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BOND AGREEMENT and bond demand_compress ed.pdf
Training Agreement - Bond - Draft.doc