An employment bond is an agreement between the employer and the employee stating that the employee shall remain with the company for a certain minimum time after joining the company or after being sent for training. If used fairly and reasonably, employment bonds can be a handy employer-friendly tool.6 Jul 2020
Is employment bond legal?
Employment bond or contract period is one such crucial element. Forcing new entrants into a bond period is not legal and the validity of employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act.2 May 2020
What will happen if I break an employment bond?
1. The company may not sue you if you break the bond as it will not be successful in recovering any money from you through court order. 2 The company may send you a legal notice as part of their pressure tactics. If they do not give certificate despite the notice You should approach the court.
How does an employment bond work?
An employment bond is an agreement between the employer and the employee stating that the employee shall remain with the company for a certain minimum time after joining the company or after being sent for training. The employee, for example, agrees to remain with the company in return for training received.6 Jul 2020
Can an employee be bonded?
A "bonded" employee is covered by a fidelity bond. These bonds are insurance policies designed to protect against the risk that an employee will intentionally steal from or damage the property of his employer or one of the employer's clients. A bonded employee is one for which the employer has taken out such a policy.
Is corporate bond legal in India?
Bonds are applicable only if the company has spent money on the personal grooming and enhancement of the employees, but not just a training that helps employees perform better. Also to prove that the bond is legal, it should not be one sided or just favour the employer.
How do you write a bond agreement?
- Name of the lender and the borrower.
- Address of the lender and the borrower.
- The amount being lent/borrowed.
- The purpose for which the amount is being borrowed.
- The time period for which the amount is being lent.
- The interest to be levied on the amount.
What is a bond agreement?
bond, In law, a formal written agreement by which a person undertakes to perform a certain act (e.g., appearing in court or fulfilling the obligations of a contract). A bond is an incentive to fulfill an obligation; it also provides reassurance that compensation is available if the duty is not fulfilled.