Bond With Employees
Meaning of Employment Bond
Employment Bond is an agreement or a contract paper consisting all the terms and conditions of employment agreed by both an employee and therefore the employer. this type of contract agreement or bond mainly contains the minimum work period and under decided circumstances which can include salary, job profile, designation etc.
What is an Employment Bond Contract?
A bond contract may be a recorded promise made by an employee to the employer pledging that he/she can pay a particular amount to the employer if he leaves the organization before the agreed period. This agreement is typically made when an employee joins a replacement organization.
Is it an honest idea to implement Employment Bond Contracts?
Asking employees to sign bond contracts has become a notorious method of decreasing attrition in organizations. the matter , though, is that the law doesn’t permit the legal enforcement of such contracts. this is often also public knowledge among employees. Which brings us to the crucial question – “Do employment bonds really work?”
The truth is that companies can withhold important collateral that employees on the excuse of an unfulfilled contract. These include:
Employees are conscious of the importance of a relieving letter which can force them to satisfy the bond period. a couple will negotiate with their new employer, but would still like better to avoid it if they will .
Where does the law need to stay?
Bonded labour, in essence, is outlawed as per the Bonded Labour System (abolition) Act, 1976. this suggests there are often no valid contract that compels employees to stay for a specific tenure within the company.
Objective of Employment Bond
It may be a legal agreement during which includes employment terms and conditions of the corporate are mentioned and therefore the employee has got to sign that bond which is a legal proof that the worker accepted the terms and conditions employment with the corporate and in future, just in case of he/she disobey the policies of the corporate then an appropriate action are often taken against the worker or he/she are often warned for not following the corporate policies.
Use of employment Bond letter
An employment bond or a contract can have the conditions just like the “> just like the period of time that an employee has got to work with the corporate before that point period the worker cannot leave the organization and there are often more things mentioned during a bond like the date on which the salary / remuneration or fee and charges are going to be released. the opposite conditions and allowance like mobiles phones, transport facilities shall be provided or not, and if it’s there then how all this be paid. How the Attendance and punctuality is required to be maintained. Further, if an employee is late twice or thrice during a week then salary are going to be deducted, if an employee take an unauthorised leave then a significant action are going to be taken, the salary package / remuneration of the worker is mentioned which is set within the interview, incentive criteria, the designation on which the worker is appointed all this could be clearly mentioned within the clauses of the utilization bond agreement.