How do bonds work?

[Racerboi101]

Bonds.. What is it? How do it work?

Let's say the company is asking for a 3 years bond? Does it mean ba na I have to stay with them for 3 years? And if I did not? What would happen? Is there a way to get out of bonds without harming your career?

3 years bond for a program developer trainee is a norm?

please enlighten me.. thnx!

[franz15]

Actually, the proper term for it is "training bond". You are required to be in service to the company that trained you for a certain period (usually 2-3 years) to pay them back the cost of training they have given you. The company will invest for your training so to assure them that you will use your acquired knowledge for their advantage, you have to stay with them after the training. Most IT companies if not all do this especially if you applied for programmer trainee. It is the prerogrative of the company to set the duration of the training bond, mine is for 2 years... If you failed to finish the bond, you need to pay the company the corresponding amount of the bond depending on the conditions stipulated on your contract.

[KuyaDanny]

My best advice is for you to read and understand the terms of the bond you are being asked to sign. Much misunderstanding and disappointment arises when we try to generalize from experience, especially the kind acquired by other people in situations unlike the one you face. It should not really matter what Company X does, or what happened to Employee A did with Company Y last year.

If Company Z wants to hire you and wants you to sign a bond first, read Company Z's contract, understand it, and consult a lawyer for the terms you do not understand. Seek clarification from the company for commitments that are not written. If you seek promises for, or if you are being asked to promise, things that are not written down, ask that they be included in the document that you will sign.

[pringles123]

Racerboi101, the first two posts sum it up perfectly. It is the company's prerogative to define the number of years you have to stay in the company, as well as the amount you have to pay should you choose to leave before that time lapses. If you do not understand parts of the contract, don't be ashamed to ask. That's three years of your IT career, so make sure you think it through.

Many of my friends find themselves spending two/three years dragging their feet to work, not being able to leave their companies so easily because they signed a training bond. Then again, there are those few who did not mind the years at all, feeling happy that they gained something from their trainings and are now able to maintain a healthy balance of work and family life.

Personally, I think training bonds should be a last, or nth to the last (if there is such a thing :) ), resort when it comes to retaining employees. But that's just me.

On another note, I have a separate question myself. In regards to getting out of a training bond, can one not legally claim that s/he felt compelled to sign the training bond for fear of losing employment? In which case the employee can argue that s/he was effectively "forced" into the contract?

[Jeffreyw]

Were there individuals who resigned and wily got off the hook?

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Jeffrey (www.gwapito.com)'s Cute Blog