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"Query on Enforceability of Undisclosed 18-Month Bond and Penalty Clau
13-Mar-2025 (In Corporate Law)
I joined Company as Research Associate. Post-joining, they introduced an 18-month bond with a Rs. 1,00,000 penalty in the Service Agreement. This was not disclosed in the interview, JD, offer, or appointment letter. Questions: 1. Is the bond enforceable without prior disclosure? 2. Can they impose a penalty or withhold wages/certificates? 3. Should I sign, negotiate, or take legal action? Please advise on my rights and next steps.
Well, when the Bond was given to you for signing, you have read it, it is not mandatory as such, that, they disclose that what they have been giving you to sign was a Bond. As far as enforciability of Bond is concerned, it depends upon various factors and it has certain exceptions too.
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Adv. Pankaj Bajaj
Pune | 700+ Answers
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