November 18, 2003

A bond is legal but...

A job in some of Indias largest software services companies is perceived as a dream job by most people but things are not rosy as they

Most of the Indian software service companies insist on bonds or employee agreements to ensure that they retain employees for a specified period of
time. These bonds have rigid terms and conditions. One of the top five Indian software exporters is currently recruiting freshers for trainee Software
engineer positions but requires that the candidates sign an agreement that they would work for the company for two years, failing which they have to
pay up Rs two lakh. In addition, the candidates also have to provide a surety agreement involving a relative who owns a property such as a flat or
plot of land.

Indias marquee name in IT also has an agreement for employees, involving a fine of Rs 50,000 to Rs 75,000 in case the employee leaves before three
years. Both legal experts and manpower consultants agree that a bond per se, is not unethical. Well, the company invests in a candidate for training
and a compensation for that training in the form of a fine is necessary to control attrition, says a job consultant.


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