The Call Center Bond

Hi Seven.  Ano ba talaga ang bond? Bakit may ganon? Pano maiiwasan yon? Anong gagawin kung sinisingil ka? Makukulong ba ako? 

James R.

Hi James.

I got your email yesterday, and since your questions are fascinating, I thought I would just turn my response into a post. This way, we can share the info with everyone.

What is a bond? 

A training bond is nothing more than a contract that says you will be paying a specific amount if you leave the company (whether by resignation or by absconding) within a particular period. For example, I worked for a company in Northgate, and we had a training bond for six months. If I left before that, I would be liable to pay Php 20,000.

Why is there a bond?

…because a lot of people abscond. Attrition is a severe threat to a company’s investment. When a person gets hired, the company will spend for their onboarding, training, etc. Therefore, to recover this cost, the company has to make sure the person stays so that his “working hours” can be converted into income.

Similarly, when the company sends an employee abroad for training or education, they need to sign a contract binding him to the company for several years (usually two).

How does a bond work?

As mentioned above, it is a contract. It is binding as soon as you sign it. If you leave before the end of your “bond,” you will be held liable for either the full or a pro-rated amount. In the example I used above, the Php 20,000 is divided into six months, so if I decided to resign on the 4th month, I would be paying Php 6666.00 (Php 20,000/6 months = Php 3333.33).

If you didn’t attend the training at all, are you still liable? 

Technically, if you already signed the contract, you are.  However, the counter-argument is  I didn’t even attend the first day of training. What company investment am I wasting? (except perhaps for the recruiter’s time and the piece of paper I signed). By the way, when you do not attend the first day of training, that correct term is NO SHOW, not AWOL.

In the above case, what should I do?

Call your recruiter before the first day of training and tell them you are backing out. That is responsible and professional. This way, the recruiter can give your slot to another candidate.

I already went on AWOL, and now I am receiving letters.

Naturally, you are fully aware there is a bond; you went on AWOL, the collection letters will follow. It really depends on the company if they take your absconding seriously and take you to court for breach of contract. Most companies will just let it go –  the cost of litigation is more expensive than just hiring another one. In my 15 years in the industry, I have never heard of an employee going AWOL and being dragged to court or having their wages garnished. I’ve heard of former employees who needed clearance and COE from the company and had to settle just to clear their name (or to get it over with).

Am I still liable if I get terminated?

Technically, you are not liable, especially if the cause of the termination fails to meet the metrics. To avoid the bond, you will be held responsible if you fail on purpose. Of course, the company has the burden of proof.

What if I need to get my clearance from my former company where I went AWOL? 

You need to visit the company and settle the balance. Sometimes, you can even negotiate it. Bottom line, you signed the contract, which gives you the obligation, and if you want/need the clearance for your next employer, you need to settle the balance.

I don’t have any money, how can I pay for it?

Why did you go on AWOL in the first place? As mentioned above, if you need the clearance, then you can make a payment arrangement. After all, how can you settle a loan if you don’t have a job right?

How can I avoid the bond?

Simple. Do NOT go to a company that’s known to have a bond. If you have no idea if there is a bond or not, use the internet to research information. After all, as an applicant, you must conduct research. This is a part of your due diligence a responsible human being whose goal in life is to have a career instead of floating around. Also, please DO NOT ask a recruiter if there will be a bond or not – this is a wrong question, and whether you are qualified or not, you will fail. Why? It is a clear sign for a recruiter that you have no plans of staying or developing a career.

Ultimately, the decision to go on AWOL from a company where you signed a bond will haunt you and cause you inconvenience but will you get incarcerated? I very much doubt it. Most of these companies would rather focus on running the business and ignore you (eventually). Then again, why court the disaster of being seriously hounded for a contract you agreed to in the first place? Be professional. For whatever reason, stay for your arrangement, use the time to learn new skills and competencies, and leave when the time is right.

If you have any questions or clarifications on this article, please don’t hesitate to leave a comment. If you have a story to tell, please don’t hold back.

Hope this helps.

Se7en

Termination, it starts and ends with you

A very close friend and colleague of mine got terminated recently. It was combination of bad decisions after another, and eventually, when the HR process was applied, it resulted to the inevitable termination. When this news reached me, he has already incurred unexcused absences, forged a med-cert, and when the notice of hearing was sent out, Murphy’s Law played its part (one of his family members was in the hospital) and he failed to attend the meeting. Right then and there, a panel of Team Leaders and the HR representative decided that it was time to let him go.

In truth, I am very concerned for this friend of mine, plainly because his wife just had a baby (their first), and being a father and a husband myself, I know how it feels when you have your first-born – every single penny counts, not to mention the medical insurance provided by the company. The other part that concerns me greatly is the fact that we have been in this company for two years, as such, we have earned the mastery of what we do for the business – a veritable source of that elusive ability to negotiate a better pay or post in the next company. With the termination on his record, he will be forced to either hide the company from his resume, or if he decides to come forward with it, he will have to find a reason convincing enough for any recruiter to let him into the next step of the process, let alone offer him a job.

When one gets termed, everything becomes complicated.

As what I’ve mentioned in my previous posts, I’m not alien to termination. However, the difference between my case and the rest of the world was that I had documentation to justify my action. Therefore, come job hunting phase, I decided to tell the truth that my employment was severed on account of attendance issues.  The decision to tell the truth cost me several good companies, and when I finally got the job, it was the sweetest accomplishment.

Why did I tell the truth? A few things:

• My skills and competencies are much too precious for me to hide.
• I needed a better paying job and hiding the skills and competencies would mean I have to start from scratch (again).
• I didn’t want the added stress of lying, and if found, getting terminated again.
• I have the gift of gab, I’m known for talking my way out of difficult situations, not just because I have the skill for it, but because I can deliver.
• My research has taught me how to create a positive spin on negative situations.

The job hunting part wasn’t easy. I got turned down several times and with these incidents piling, my bills were too, plus, I was receiving an immense pressure from my wife to land a job fast.  I was so tempted to rethink my strategy (of honesty), and on the very day that I decided to implement the lie, I decided that I will tell the truth one more time, and if I still fail, then I will tell a lie in the next company. Lo and behold, the recruiter and the hiring manager gave me a chance (and this isn’t one of those pipitsugin companies), and I was to start the following week.

A few things that I’ve learned in this experience and I’ve shared them with my colleague who got fired recently:

1. Getting a job is harder than you think, therefore, if you already have one, be mindful of your attendance and overall performance. Notice that the company has several policies in place which are designed to “give you a chance” before you reach the termination phase. Depending on the company policy, you will be given coaching, then a verbal  warning, a written warning, suspension, then a hearing for the termination case. It takes several incidents for you to reach the last point, which means that it’s you who is at the helm here and your manager and the HR is merely completing the process which you started.
2. Don’t ignore the HR process except when you’re trying to get fired (believe me, some people are stupid enough to aim for this). I’m talking about the Return to Work Order, the hearing, etc. The process is put in place to give you a chance to explain yourself and if the reason is grave enough to warrant a chance of retaining your job, then it’s a chance you don’t want to miss.
3. When you foresee a situation which has the potential to affect your employment, immediately consult with your manager and the HR. Seek for opportunities which will allow you to lessen the impact – SL/VL/emergency leave or if there is a chance for you to go on an extended period of absence without losing your job, grab it. The objective is to keep your employment, at the same time addressing your personal issues at home. It is true that you need to separate personal with work issues, but some work-affecting issues (illness, family conflict, etc) must be known, at the least, by your manager. He or she needs to understand what is going on in your personal life so he will not judge you unfairly.
4. Don’t fake illnesses, or the documents for it. Companies are now smart and diligent enough to check with hospitals, clinics, and they will verify if you actually used your HMO card.

Remember, getting terminated from your job isn’t something that your manager or your company would wish to happen to you. They trained you, they invested on you, and they are concerned about their attrition, hence, it is imperative that they give you several chances to change your bad behavior. Therefore, getting terminated from your job is actually a decision you are making, little by little, with your actions. Your manager’s function is to keep a record of and manage  your behavior at work. As soon as you cross the line, the process starts.  It starts and ends with you.