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Cash Bond in Call Center

Posted on November 16, 2014 | No Comments on Cash Bond in Call Center

Cash Bonds in call center pertains to two things.

The first concept of cash bond pertains to training bond or employment bond which is agreement entered between the company and employee which among the other terms states that an employee shall remain in the services of the company for a particular period of time in consideration of the training given to said employee and the money spent by the company for the training. Said employee shall pay the company the company for violating said agreement. The sum of money to be paid is referred to as the cash bond which would amount to the expense incurred by the company in training of the employee. The legality of the Bond is dependent upon the provision of consideration in the form of training or otherwise. However, the bond is legal under the concept of unjust enrichment which recognizes the principle that one may not enrich oneself at the expense of another.

The second concept of Cash bond in the call center industry refers to the amount of cash that a call center company is supposed to put up as protection for employees in case of unexpected or sudden bankruptcy. The cash bond is supposed to be equivalent to one month of salaries and benefits of its total workforce. This was proposed by BPO workers unions in order to prevent fly-by-night companies to proliferate and exploit Filipino workers. Said bond requirement was proposed by local workers organization following that hasty shutdown of some BPO companies across the country that left hundreds of employees with unpaid wages, commissions, overtime pay and separation benefits. As of the moment however, there is no policy from the Department of Labor and Employment (Dole) or any law enacted by the Philippine legislature that requires BPOs to deposit a cash bond.

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