Navigating Obligations After Resigning Before Bond Period: What to Do and Not To Do

As a common concern among employees, the issue of paying bond money if you resign before the bond period ends is a complex one that often baffles individuals. The answer can vary significantly based on the specific terms of the bond agreement and myriad other factors. Here’s a detailed breakdown of what you need to consider to avoid ending up in a binding situation that involves paying Rs. 50,000 or any other amount.

Understanding Bond Periods and Resignation

When you resign from a company before the bond period ends, you must consider the bond agreement's specific terms. Suppose your bond ends on 12th August 2021, and you currently have a 2-month notice period. If you leave after 12th June 2021, you might escape the bond penalty because your last working day (LWD) could be 12th or 13th August 2021. However, it is generally recommended to secure a new job offer before resigning.

Prorated Bond Payments

Some employment contracts stipulate that bond money should be prorated in the event of resignation. For instance, if you resign after 1 month of the bond period, you only have to pay the bond amount for the remaining period. However, most companies draft contracts so that even a slight remainder of a month requires the payment of the full bond amount.

Adjusting for the Notice Period

After resigning, the company may deduct your 2-month salary as a penalty for not serving the notice period. Alternatively, you can use your unused earned leave to adjust the notice period. It is essential to carefully read and understand your bond agreement to resolve ambiguities.

Alternative Scenarios

There are several strategies you can adopt in your current situation:

New Employers: In some cases, the new employer may allow you to join immediately after your current resignation and pay only for the notice period. This possibility depends on your skills, the new company's hiring needs, and your ability to notify them of your joining date after a given period. Communicate proactively with your current company's HR about this urgency and negotiate terms that might waive off the notice period amount. Good terms with your management and senior teams can contribute to a more favorable outcome. Waiver of Notice Period Amount: If your relationship with your current company is strong, they may be willing to waive the notice period amount. Regular and open communication is key to this.

No Obligation to Pay

Based on the specific scenario you provided, here is a detailed analysis:

Resignation Date: 3 December 2018 Notice Period: Until 3 February 2019 Bond Completion: 3 January 2019

In reality, you will work for an additional month after the bond period is over, which means you are not in violation of any employment conditions. After the notice period, you will be free of any obligations.

Final Thoughts

Instead of facing the bond money, you can request an experience certificate after completing your notice period. This document is highly valuable for your future career prospects, making it a win-win situation.