Good evening Nairalanders

Please what are your thoughts on companies asking for a collateral or Binding agreement before offering an Employment offer to their preferred candidate?

Collateral can be (Landed property, Assets, Specific amount in millions)
Kindly Share your thoughts.
Should one give in or walk away?

Initially, my thought was that it's extraordinary and irrational especially when it's a collateral. If you're talking about a bond agreement in which I know it as, then the employee has to pay a fine for breaking the agreement. In this case, it's common to involve an attorney.


The reason for the bond is usually due to the company who takes the responsibility in financing the employee's professional training. Other than that, why would a company seek collateral from some individual simply applying for a job? The agreement may require that such a candidate of the agreement would be required to work for, for example, 48 months for the company after receiving the training financed or provided by the company but they still earn salary. If at any point the candidate or employee breaches the agreement, they are usually required to pay a fine or hefty price or even a collateral like you said which I know to be uncommon. But like I said, it always involves a lawyer and it could be from both parties.

princely4ever:
Initially, my thought was that it's extraordinary and irrational especially when it's a collateral. If you're talking about a bond agreement in which I know it as, then the employee has to pay a fine for breaking the agreement. In this case, it's common to involve an attorney.


The reason for the bond is usually due to the company who takes the responsibility in financing the employee's professional training. Other than that, why would a company seek collateral from some individual simply applying for a job? The agreement may require that such a candidate of the agreement would be required to work for, for example, 48 months for the company after receiving the training financed or provided by the company but they still earn salary. If at any point the candidate or employee breaches the agreement, they are usually required to pay a fine or hefty price or even a collateral like you said which I know to be uncommon. But like I said, it always involves a lawyer and it could be from both parties.

Thanks for your input
The bond agreement is not related to the training that will be provided by the company but in relation the post the individual applied for in the company.

O ga gan sha, so person wey jus concluded NYSC go get properties ? Na GEE BOY dem wan employ abi?

We yet to get things right.
Some company wants employees with age not more than 25years with 5 years experience, na from their mothers' womb dem for School and served abi?
Na why skit makers plenty for Instagram
Spanking them CAREERS & kissing it goodbye on white collars job

Nigeria is a crazy place with crazy people . There is a bank that trains graduate trainees for 3 or 4 months. After the training other banks came to offer the staff bigger pay. Is that fair on the bank They were the first to introduce 2m naira bond that year. Don’t know the current amount.

Also in Nigeria, many employees in manufacturing settings steal raw materials like flour, chemicals, fuel, company assets etc. in Nigeria the cure for madness is more madness i dont blame those companies. Until you have run a business before you can understand their plight o.

When I got a job immediately after service, I was asked to provide a guarantor before I was offered the post of a manager at an NNPC filling station.

The condition was that the guarantor must have a landed property in Port Harcourt or Yenagoa or elsewhere in the South South. I provided the guarantor, did the job for about a year and left when I was tired of it.

The truth is, Nigerians (both employees and employers) are terrible people. Therefore, some companies may make insane requirements before giving you an offer if they don't trust you. Understandably, trust is an issue in Nigeria.

However, every job seeker must do their due diligence so you don't get involved in a job scam where scammers disguise to be offering you a job just to dispose you of your landed property or assets.

Crazy

pheelhip:


Thanks for your input
The bond agreement is not related to the training that will be provided by the company but in relation the post the individual applied for in the company.

So you're saying the company is requesting the potential employee to bring a collateral (say a land document) which the company will collect and sell because the employee resigns? Some employers don dey mara ooo

If you apply as a Cashier or Account personnel who handles huge volume of cash, the company has the right to request for collateral commensurate to the volume you handling in case of theft or loss of funds.
The company will be at risk , if it doesn't have such to fall back on.

Bond also ensures you are committed to work with the organisation for a specific period of time.
That has to do with operational stability of such company, since employees work out of jobs anyhow, even without following due process of resignation.

It's just to keep them safe.

ednut1:
Nigeria is a crazy place with crazy people . There is a bank that trains graduate trainees for 3 or 4 months. After the training other banks came to offer the staff bigger pay. Is that fair on the bank They were the first to introduce 2m naira bond that year. Don’t know the current amount.

Also in Nigeria, many employees in manufacturing settings steal raw materials like flour, chemicals, fuel, company assets etc. in Nigeria the cure for madness is more madness i dont blame those companies. Until you have run a business before you can understand their plight o.

access bank i guess

Employers has been shown shege before they possibly request for this

Which kind thing con be this my previous company sponsor me to Germany for training, no collateral or binding was required

Well maybe the company they fear you ur eyes fit strong pass C. E. O own 😁😁

The day I hear say some people fit carry company plasma TV put for pocket cold catch me 😂😂

Always seek the services of a lawyer before you go and enter one chance.

pheelhip:


Thanks for your input
The bond agreement is not related to the training that will be provided by the company but in relation the post the individual applied for in the company.

Walk away!

You wont understand this unless you are been on both sides of the fence.... Many employer of labour don see shege for some kind employee hands.

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Well..

Ok

pls everyone on nairaland, i am apealling to you all. pls can anyone help,me with 1k, just 1k nothing more than that. i am very very hungry, i havent eaten since saturday last week. At least let me get something to eat today, so i can have energy to go out and look for money or hustle. PLS SAVE A HUNGRY BROTHER

casualobserver:


Walk away!

What are your reasons to walking away.
Have you experienced or heard of any ill fated occurrence before?

What do we want organisations to do

They employ you...you get trained on the job, have loads of job experience and of course, they are paying your salaries and other entitlements as spelt out in your conditions of service...


But, one day...you have earned enough to ja'pa...you wan ja'pa not because of the organisation where you work, but because of the society...Nigeria State...

Your actions to ja'pa will send organisations back some years, looking for new employee to fill your role is an herculean task..

Na things like this they make organisations make use of bonds (in some cases na just empty threat though, so far your original certificates are not collected )

princely4ever:
Initially, my thought was that it's extraordinary and irrational especially when it's a collateral. If you're talking about a bond agreement in which I know it as, then the employee has to pay a fine for breaking the agreement. In this case, it's common to involve an attorney.


The reason for the bond is usually due to the company who takes the responsibility in financing the employee's professional training. Other than that, why would a company seek collateral from some individual simply applying for a job? The agreement may require that such a candidate of the agreement would be required to work for, for example, 48 months for the company after receiving the training financed or provided by the company but they still earn salary. If at any point the candidate or employee breaches the agreement, they are usually required to pay a fine or hefty price or even a collateral like you said which I know to be uncommon. But like I said, it always involves a lawyer and it could be from both parties.

It is illegal for a company to request for collateral when employing someone.

No employee is required to pay any fine if he/she on on bond. An employer may only require and employee to pay back cost of bond if he/she wants to leave the company. The bond is not a profit making venture for any company and must be prorated before an employee may be required to pay whatever Ballance is remaining.


cc;: pheelhip

ednut1:
Nigeria is a crazy place with crazy people . There is a bank that trains graduate trainees for 3 or 4 months. After the training other banks came to offer the staff bigger pay. Is that fair on the bank They were the first to introduce 2m naira bond that year. Don’t know the current amount.

Also in Nigeria, many employees in manufacturing settings steal raw materials like flour, chemicals, fuel, company assets etc. in Nigeria the cure for madness is more madness i dont blame those companies. Until you have run a business before you can understand their plight o.

Most of thes companies only used bonds to scare employees from leaving. Most of these bonds don't always hold water as it would be demolished in court but ignorance and fear keeps employees from leaving.

Which kind yeye work be that

pheelhip:
Good evening Nairalanders

Please what are your thoughts on companies asking for a collateral or Binding agreement before offering an Employment offer to their preferred candidate?

Collateral can be (Landed property, Assets, Specific amount in millions)
Kindly Share your thoughts.
Should one give in or walk away?

It a scam. If they need your collateral then they don't have the capital to either run the business or pay you. It's idiotic of my to pay you the company to simply employ me. I would be demanding an ownership stake or some percentage of the profits. Just walk away if you're asked something like that.

A binding agreement like an a NDA or non-compete clause is pretty normal.

blueghost:
Always seek the services of a lawyer before you go and enter one chance.

pheelhip,

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yinkus6750:
If you apply as a Cashier or Account personnel who handles huge volume of cash, the company has the right to request for collateral commensurate to the volume you handling in case of theft or loss of funds.
The company will be at risk , if it doesn't have such to fall back on.

Bond also ensures you are committed to work with the organisation for a specific period of time.
That has to do with operational stability of such company, since employees work out of jobs anyhow, even without following due process of resignation.

The bolded is not true

For you a company to bring forth binding agreement, they must be ready to pay good. If not, trash it!

Why put me into terms without a mouth watering pay.

It all depends on what you “Personally” feel you worth.