Impact of Organizational Policies on Negotiating Bond Severance

What an employee resigns within the bond period, he/she has to pay the severance for violating the bond. The negotiating power of the employee to reduce the severance amount depends on various factors which are discussed below:

• Policies of an Organization: Some organizations are flexible to reduce the severance amount depending on the situation & some organizations have extremely rigid policies. For example; if an employee resigns before the tenure of employment bond, then some organizations may reduce the severance depending on various factors like time left for the completion of bond period, reason for resignation, etc. Some organizations have very rigid policies & they don’t negotiate on the severance amount under any circumstances.
• Good terms with the Reporting Manager: If the organization has a flexible policy with regard to employment bond, then the terms between the resigning employee & the reporting manager plays a very vital role in negotiating the severance for the bond. For Example: I had a notice period of 3 months in Infosys for resignation. Although I was not sure about resigning from Infosys as I was waitlisted in a few Institutes for MBA admission, I unofficially informed my manager about the situation as I had good terms with her. In the meanwhile I was also providing Knowledge Transfer to other resources in the project as the project was very critical. When my waitlist got converted, I resigned by giving a notice of 7 days only & I did not paid any severance as my manager supported me in negotiating with the HR manager.