What to do if company made me sign a bond if I leave early


I have bond with my current company of 36 months.Actually they have mentioned it as service agreement. Now i have to go for higher education and company will relieve me when I pay Rs 3,60,000 the bond amount. If i dont pay it will they file a case against me. In the beginning they also asked me for a security check of Rs 3,60,000. How should i go ahead ?

Answers (3)


228 votes

By the way you have out your query what we understand is that your Company has asked for a post-dated/ undated security check for Rs. 3,60,000 which will be en-cashed if you don't serve the bond period.
Bond period is mentioned in the service agreement.
Now, one will require to analyse terms of your Bond to give a complete answer as a Bond can be challenged on the grounds that it as an unreasonable restriction.
In case you break the Bond, company will send a recovery notice and might file a suit against you (generally corporates do not go into litigation following conservative approach)
However, they will certainly not issue you experience certificate in manner of arm twisting.


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257 votes

Well, firstly employers cannot lay conditions to bind an employee, wherein such conditions bind the employee post their termination, as that would amount to restraint of trade and profession (Section 27 of the Indian Contract Act which clearly lays down that all such contracts are void).

However, there are reasonable negative covenants that can be imposed by an employer during the term of the employment. The practice initially was to bind the employer since many companies spend alot of money on training their employees. However, now the employers are adopting an unfair practice of binding the employees which is not permissible in law.

Even if your employers were to institute a suit, the court would grant reliefs in proportion to the time that you've completed out of the 36 months and also the amount that the company has actually spent on your training.

Kindly refer to the link below for more details: http://www.mondaq.com/india/x/237806/employee+rights+labour+relations/Enforceability+of+Employment+Bond

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271 votes

Write a letter to the company and recalled the bond which you have given them and also demand the returned of the cheque which you have given to company saying that the bond is illegal as it restricted me through and also taking away my constitutional right

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