Is signing of bond paper legal before joing a job
23-Jul-2023 (In Labour & Service Law)
Is bond legal in india as some of my colleagues said its illegal but my new office HR's want me to sign a bond.What shall I do?
Relationship between an employee and an employer is based on an agreement which culminates into a contract once both parties execute it by affixing their signature to it. When both parties sign the document the terms of the contract are binding on both of them. In India this document does not have to be on a stamp paper or a "Bond Paper". However, even if it is prepared on a stamp paper, it will make no difference as to its validity or recognition in the eyes of law - therefore it is not by this fact itself "illegal".
Employment contracts in India also use the term "Bond" to refer to an agreement which indicates that if you leave before a specific period of time - say 2 years, you will have to pay a certain amount of money. Such a clause could however be illegal depending on the purpose towards which the money is claimed.
Employment contracts like all other contracts are always subject to the law of the land. Employer - employee relationships are also subject to various local, state and central laws such as Shops and Establishment Act, Industrial Disputes Act, various Standing Orders etc.
If the contract or "Bond" you sign contravenes any of these laws, those clauses that are in contravention will be void and unenforceable despite the fact that both the parties have agreed and signed it - whether on plain paper or a bond paper.
The employer could however become liable to be punished for violating the law if any such clause is brought to the notice of the relevant authorities.
YOUR REMEDY:
You may however choose to add or remove any clause in the employment contract. You are not bound to accept the draft agreement prepared by your employer and are free to make any changes to it. The agreement will come into force only when both the parties agree to the contents therein and sign the same. You need not worry even if the same is prepared on a "Bond Paper" so long as the contents therein are agreeable to you.
Employment contracts in India also use the term "Bond" to refer to an agreement which indicates that if you leave before a specific period of time - say 2 years, you will have to pay a certain amount of money. Such a clause could however be illegal depending on the purpose towards which the money is claimed.
Employment contracts like all other contracts are always subject to the law of the land. Employer - employee relationships are also subject to various local, state and central laws such as Shops and Establishment Act, Industrial Disputes Act, various Standing Orders etc.
If the contract or "Bond" you sign contravenes any of these laws, those clauses that are in contravention will be void and unenforceable despite the fact that both the parties have agreed and signed it - whether on plain paper or a bond paper.
The employer could however become liable to be punished for violating the law if any such clause is brought to the notice of the relevant authorities.
YOUR REMEDY:
You may however choose to add or remove any clause in the employment contract. You are not bound to accept the draft agreement prepared by your employer and are free to make any changes to it. The agreement will come into force only when both the parties agree to the contents therein and sign the same. You need not worry even if the same is prepared on a "Bond Paper" so long as the contents therein are agreeable to you.
If u r working for how know technology, innovation etc than it is legal , otherwise no value, however see the terms if one sided than illegal ans arbitrary. U decide u want to sign or not ? However u can take legal action Against employer
Signing a bond is not illegal. Its a contract between you and the company with terms and conditions. In case you do not want to abide by certain terms and conditions you can negotiate with the company regarding those terms. But in case they do not want to negotiate it with you, then its your discretion whether you would want to work with the company on their terms and conditions.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Labour & Service lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."