An employment bond is basically an agreement between an employee and employer that states clearly(hopefully!) the terms,conditions and consequences of an employee terminating his/her employment before a specified period of time.Like most other things, this even has two sides to it:On one hand, I feel the employer's are justified in having their terms and conditions for the bond, while on other hand these bonds some times become too harsh for employees.
Employers do indeed incur a huge cost in making an employee working-fit for the company,may it be in the form of recruting the employee or infrastructure and human capital involved in training the employees . So, obviously an employer would look for value in return of it's investment in terms of money and time.Morever, it is extremely difficult for companies to immediately find an appropriate replacement for it's departing employee. So, it has to penalise such employees in some form or the other. Such restrictions are more significant to the companies in 2 cases: first for freshers, who continuously try switching to higher paying jobs and secondly, for employees who are sent abroad.In the later case, it is needed to discourage employees from switching over to more lucrative offers abroad.
The bonds and conditions put forward by employers may be valied to certain extent.But is it fair for employees???Well, definitely not always.Firstly, most of the employees while joining the company are not in a position to bargain with the employer.The companies take advantage of this to set their own terms and conditions, some of which are too harsh on the employees sometimes. For example, incase of Asatyam I found both the terms illogical. First, how can they expect a simple graduate to deposit a huge amount of Rupees 2 lakhs?And morever, the banks charge an interest from the employee if he/she takes the amount from it (which in most cases would be the only option left with a fresher!).Also, because of such harsh penalties in terms of Money, it becomes almost impossible for most employees to leave the company, and needless to say, the companies take advantage of this and exploit the employees. Infact, this exploitation and working conditions in the companies itself sometimes become the main reason for the employees leaving the company. And in most cases, this case of Constructive Discharge isnt given the due importance that it deserves while implementing the terms of Bonds.Also, the basis on which the companies fix the amount and tenure in their contract isnt very transparent and
questionable.
So a balanced and fair Bond is what is needed.
Else it would leave the employee Shaken, and maybe even Stirred.
-Subhrajit Mishra
I agree to your fact that harsh bonds are almost seen only with freshers. just adding to your point i think there is a reason to it. The bargaining power of individuals at the beginning of the employment relationship. With experience your bargaining power increases and hence able to bargain on the bond part. Also what are called Roosters the people who jump from one company to another very frequently are mostly found amongst freshers hence a need to contain them to avoid damage(Training and Hiring Costs)
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