Hi Everyone, Is it enough to implement employee bond on Company’s letterhead or should it be legally notarized? Thanks Swati Chawla HR at Zero1 Inc
From India, Delhi
From India, Delhi
3131
Dear Swati Chawla, It is always advisable to get the employee bond on stamp papers and notarize the same.
From India, Hyderabad
From India, Hyderabad
Notary Act India 1952
Sec 8. Functions of notaries.- (1) A notary may do all or any of the following acts by virtue of his office, namely:-
(a) verify, authenticate, certify or attest the execution of any instrument
among other duties
Therefore notorisation does not add value.
If needed a bond on Rs500 stamp can be executed between company and employee.Value of stamp can vary from state to state and a local lawyer can tell you exact amount to be paid and value of stamp paper.
From India, Pune
Sec 8. Functions of notaries.- (1) A notary may do all or any of the following acts by virtue of his office, namely:-
(a) verify, authenticate, certify or attest the execution of any instrument
among other duties
Therefore notorisation does not add value.
If needed a bond on Rs500 stamp can be executed between company and employee.Value of stamp can vary from state to state and a local lawyer can tell you exact amount to be paid and value of stamp paper.
From India, Pune
Dear Swati any agreement done between two parties would be on stamp and notarised whether bond or contract or others etc.
From India, Pune
From India, Pune
Dear Swati,
Some of the company obtaining bond from trainee like GET`s & DET`s OR Management Trainees that, they have to serve minimum 2-3 years with company else specified amount will be recovered from them. Few years back, one Advocate advice me that, such bond legally do not stand in court. This is just psychological pressure nothing else.
If company investing money on specific training in India OR abroad and mutually agreed by Employees & Employer in advance; here such bond are legally valid. Employees had to serve company for specific period else he had to compensate amount invested on his training.
I will be grateful to my senior, Pls. guide, if they keep some different opinion.
Regards,
Lakshya
From India, Mumbai
Some of the company obtaining bond from trainee like GET`s & DET`s OR Management Trainees that, they have to serve minimum 2-3 years with company else specified amount will be recovered from them. Few years back, one Advocate advice me that, such bond legally do not stand in court. This is just psychological pressure nothing else.
If company investing money on specific training in India OR abroad and mutually agreed by Employees & Employer in advance; here such bond are legally valid. Employees had to serve company for specific period else he had to compensate amount invested on his training.
I will be grateful to my senior, Pls. guide, if they keep some different opinion.
Regards,
Lakshya
From India, Mumbai
Dear Lakshya: To say that bonds are unenforceable in courts of law would be too naive and need not be correct always. The service agreement bonds, to be enforceable as a valid contract has to fulfill the condition of having reciprocal promise. The employer as well as employee have to make certain promise to each other. For instance, for all the training cost s incurred by the employer, the employee agrees to serve for a minimum period of time to be mentioned, failing which the employee agrees to remit an amount specified in the mutual agreement. But what happens in most of the cases there will be no reciprocal promise or there will be no account kept of the training cost incurred. So in such cases it is difficult to prove that employer has suffered any loss and consequently any claim for damages for breach of contract would not be maintainable in courts of law. Let me also add that there are certain resource persons/ agencies available who are specialised in recovering bond money using not so fair means.
From India, Mumbai
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc