Wednesday, March 10, 2010

Why Bond Works!!!!

As per the Article 19 of Indian Constitution the right work is a fundamental right, and under no circumstance any person be forced to do something that amounts to the violation of the fundamental right. The Supreme Court has clearly stated that no employee can be forcefully employed, just because he has signed a contract with the employer.
So if challenged, the so called bonds may not stand the scrutiny of labour laws. But they are being practised in the industry and are working to the extent of 85%. Either the employee pays up or serves the required period. Only in some genuine cases, the employee is allowed to go easily.
Therefore the question arises is why and how these bonds work. Few reasons which I could think of are summarised below:

Most of the employees in IT/ITES industry come from middle class and upper middle class backgrounds, which are used to live safe /secured, clean image life. So, when a legal notice goes to the employee's family, it creates a mental trauma and they force their ward to settle the matter amicably.

Second reason could be that when an employee leaves without meeting the bond conditions, he does not receives an experience certificate & relieving letter , which is asked by many reputed companies in the labour market and helps individuals in better bargaining.

Third reason is that employees’ final settlement of accounts is not done. And the employee goes with the feeling that he is not known for honouring commitments made to employers.

Also during the reference check, there will not be a positive response from the previous employer.
So it can be concluded from above statements that bonds are used to create a psychological & social fear in the mind of employees.
Hence for those who are mentally strong and proficient in their skills , there are no bonds !!

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