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  • Deed of indemnity bond in railway

    Are you having query about indemnity bond for railways? Looking out for advice on how to resolve issue regarding bond and training cost reimbursement? Find advice from experts here for your query.

    I have been selected as JE in Indian railway through RRB CEN 03/2018 in Guwahati Zone. I was asked to fill a bond.
    My State government JE job has grade pay more than that of RRB JE for which I had applied before joining the RRB JE. The query is: will I be asked to reimburse the training cost?
  • Answers

    6 Answers found.
  • 1. Generally, when you join in Railway you will be given training for a fixed time in their Zonal training schools. They will pay you the basic and DA as your salary during the training period. Once you complete your training at ZTS, you will be given training online and on station also.

    Before starting the training you have to execute a bond to railways saying that you will work for minimum 5 years. Otherwise, they will be asking you to pay the expenses they have incurred on you.

    2. But during this 5 years period, you can apply to other jobs through proper channel. If you get selected for any such job your bond will be transferred to the new department and you have to work there for the remaining period there. For example, you worked for 2 years after training and joining in another government job. In that new job, you have to work for the remaining 3 years.

    3. So you should apply for the new post through proper channel only. You can send an advanced copy to use the bond transfer facility.

    This is the normal procedure.

    Your question is not saying anything about your present status. Did you complete the training there or still you are in training only.

    When you applied for the new post you have not joined the Railways. But at the time of joining did you inform them about this application or not?

    Basically. for this post you have not applied through proper channel and hence bond transfer will not be applicable. You have to resign and go. In such a case, you have to pay the demanded amount as mentioned in the bond.

    The bond mentions that if any employee wants to leave during the training after fulfilling the conditions laid down in the bond. So you can resign and go but you may have to pay them the cost of the training as mentioned in the bond.

    always confident

  • Sir you asked me about my status
    I have not joined railway yet.i am confused whether i join railway or wait for
    State gov je job.but my railway training may start from next month.
    If i tell railway at joining time about i filled form before joining railway
    Then they will consider it for bond transfer?
    Pls reply sir

  • You have applied for the state Govt JE job but still waiting for the results to come. Meanwhile you have already one job in your hand for which you have to join and go for training next month. By the time you go for this training your call may come for the state Govt JE post. Then you will have to resign and reimburse the training costs in toto.

    This is a tricky situation but you have to take a conscious decision. What are your chances of getting through the state JE exam. Can you compare it with the competition you had in Railway JE exam? As per my knowledge both are equally competitive and if you have selected in the one the chances in other are also very prominent. So you can take a chance and ignore the Railway JE and wait for the state JE results.

    If you do not have much financial constraints then you can even join the Railway JE job and undergo the training also and at any time when you are called for State JE then just resign, deposit the training cost and leave.

    Knowledge is power.

  • Indemnity bond is a necessary procedure which is followed in Railway recruitment. You will have to sign the indemnity bond because you will be given training at the Zonal Training School (ZTS). The duration of training will be usually for around ten months. During this time, they will pay you the Basic Pay and Dearness Allowance (DA).

    The purpose of signing the bond is to discourage the candidates to leave the job during training period, which causes a huge loss to recruiting board. After the training at Zonal Training School, you will get 'line training' and 'station training'.

    Usually in Railways the indemnity bond is for five years on till the final confirmation by senior zonal officer.

    If a candidate leaves before the completion of training he will have to pay following amount:
    1. Salary received during the entire period.
    2. If you had received the training outside your training institute, in that case you will have to pay training cost as well.
    3. Some other salary components etc.

    But if you want to apply for another job during this training period, you can apply through proper channel or technical resignation and obtaining No Objection Certificate.

    To attend written test or interview for State government JE job you can get No Objection certificate from the current employer. If you will not obtain an NOC, your bond benefits will not be transferred to your new job.

    If you will not complete training period then definitely you will have to pay salary of that period including training cost and other costs.

    As you have not joined railway job and waiting for State JE job. I think letting go one job that is in your hand, in waiting of other job will not be a wise decision. You should join Railway job and if you will get selected in State JE job then you can resign from this railway job.

  • Indemnity Bond is a kind of contract between you and the Railway regarding your tendering of your service to the organisation for a fixed period of time as decided by the Board and in the event of breach of the contract, following amount is to be paid-
    1) You will have to refund back all the salaries including the DA drawn from the Railway for the entire perod of stay in the Railway.
    2) The Bond - money for the remains period has to be paid back. Suppose the contract for the service was for five years but you have rendered your service for only two years, it means you have to refund back the money for remaining three years for which you did not render your service.
    3) Any extra payment made to you in the event of your training outside the location as a part of training.
    In your case, NOC is not applicable since you have already got the assignment of state - government prior to joining your services in the Railway.
    You can straightway join the state - government job ignoring the Railways.
    Alternatively join the Railways and make the payment of the entire dues payable to Raiways in the event you leave the job tendering your resignation.
    Loss can be compensated within a short period because of attractive salary of the state government as you have indicated.

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