Essential Bonds !!!!

I would like to share an Experience with a company here very much relevant to the Topic. The Company had a Bond Period of three and a half years after the date of joining of the employee. The irony is the Bond amount was Rs 50000 but the employee ended up paying around 1.36 lakhs to be precise when he quit the job after working there for 21 months.

Shocking i know, let me Explain. When the employee joined he thought he would have to give just 50000 rupees if he quit his job but only to surprise himself when he actually quit and with the certificates and Experience letter with them i don’t think an employee has much bargaining power left.

Well the Bond amount consisted of some of the “Additional Increments” that they had given the employees during their tenure at work which was taken back when the employee quits and also the notice Period amount which any employee is bound to pay when he quits any company without notice period.

This Bond Amount of Rs 50000 reduces along a straight line with increase in the Employment term and will become zero at the end of 3 and half years. Thus showing that the Employer would have re-gained the training cost (Rs 50000) that was spent on the Employee at the end of that term.

I feel that having a Bond amount is good so that it just compensates the Training amount that the company has spent on the employee by the Employer. But there should be more transparency in the whole Contract. Like in the above case it should have been made clear to the employee that any additional increments or payment made to the employee will be taken back by the employer at the time when the Employee quits his job.

Other than that i feel it is totally justified to have a Bond amount for a tenure during which the Company feels if the Employee serves the Company for, He/she would have given back to the company in terms of value addition, what the company spent on their training.