Employment Bond: Refrain from breaking the Bond

Employment Bond: Refrain from breaking the Bond
Career & Course Selection

Employment Bond: Refrain from breaking the Bond


One of the most important qualities that employers look for in prospective employees is ethical behavior and moral code of conduct. While ethical behavior, in the broad sense means demonstrating attributes like equality, fairness, honesty, and integrity, it also means honoring  promises and  fulfilling  obligations which include staying true to the employment bond.

Many students who want to pursue their higher education in a foreign country take up internships through campus recruitments or start doing a job in the field of their interest to gain valuable work experience. However, some companies require their new employees to sign an employment bond.

While there are numerous reasons for a company to make  new employees sign a bond, the most common one is to reduce the attrition rate. When a company notices that a large number of employees leave the company without notice, it tries to tie them for a certain amount of time with the help of employment bonds.

This means that if an employee decides to quit before the stipulated time period, he/she will be required to pay a specified amount as compensation to the company. The compensation amount is based on the actual loss incurred by the employer by such a breach. This discourages the employees from leaving the company in a lurch and insulates the company from the disadvantages that a high labour turnover has on its productivity and efficiency.

An organization spends huge amount of money in training the new staff with the aim of improving the performance of the company. Many students leave the job midway the moment they secure admission in a university abroad and end up violating the terms of the employment agreement. Therefore to safeguard against such a loss, employees are required to sign an employment bond when they join the company.

Consequences of breaking the employment bond

If a student leaves the job without serving the company for the agreed time period, then the employers  suffer losses due to delay in work and project completion. This in turn adversely affects their reputation and creditability in the market. Therefore, every new employee is made to sign an employment bond so as to compensate the employer for the loss incurred in case of a breach of contract and in this manner prevents them from leaving the company.

If the terms of the Employment bond are violated, then the company can send a legal notice asking the employee to report to duty immediately, failing which he is required to pay the sum specified in the bond. If the employee fails to pay the amount, a suit is filed in the court of law for the recovery of the due amount.

Unethical behaviour always has its own set of negative consequences. While it is a known fact that for breaking the terms of the employment bond, the student may have to pay a substantial amount of money as compensation, what students fail to realize is that breaking the employment bond will reflect badly on their professional repertoire  and also jeopardize their future career prospects. For instance, if an employee leaves the job abruptly and breaks the terms of the bond upon securing an admit from a university abroad, he may have to pay a heavy price for his actions in the future. This is because, as a part of the recruitment process, every company runs a detailed background check on all  aspiring applicants. In certain cases, calls are also made to the applicant’s ex employer for obtaining updates about his employment records. If during such a reference check, any sort of unethical behaviour such as breaking the employment bond is unearthed, then he may end up losing an excellent job offer.

Indeed, the consequences of such unethical and immoral behaviour are severe and punitive. Therefore, it is safe to conclude that breaking the employment bond is injudicious and hence it is not only advisable but also beneficial to uphold the terms of the employment bond.

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