Are employment bonds legal in India?

734 votes

in the current scenario, the most pertinent issue that comes to our mind is whether such method to retain employees is effectual, acceptable and enforceable under the law. Such contracts, in appropriate circumstance, can be challenged on the ground that they restrict the fundamental right of the employee to profess his or her trade or profession. Further, the validity of such bonds would also depend on whether the bond is in fact a valid contract under the Indian Contract Act, 1872 or not. A contract is valid only if it has been made with free consent of the parties, i.e. without force, undue influence, misrepresentation and mistake.

Advocate Siddhant Sharma LawRato

883 votes

As of now, no law disallow to not to have any employment bond with its employees and then there is no limitation on the number of years for such employment bond as well. In fact the government too has employment bond concepts with itself which sometimes carries the time period of 5 years.
However, these employment bond will not have its validity if you have not been trained by the employer at their expenses for your betterment in skills to perform the job assignment.
Further if you want to come out of this employment bond then you can do so by the buy back policy. Which is paying such amount to your employer which they have incurred on your training.

Advocate Pulkit Prakash LawRato

696 votes

the employee would have to give notice of his intention to snap the existing relationship to enable the employer to make alternative arrangements so that his work does not suffer. The period of notice will depend on the period prescribed by the terms of employment and if no such period is prescribed, a reasonable time must be given before the relationship is determined. If an employee is not permitted by the terms of his contract to determine the relationship of master and servant, such an employment may be branded as bonded labour. That is why in Central Inland Water Transport Corporation v. Brojonath Ganguly, [1986] 3SCC 156 at page 228 this Court observed as under:

"By entering upon a contract of employment a person does not sign a bond of slavery and a permanent employee cannot be deprived of his right to resign. A resignation by an employ- ee would, however, normally require to be accepted by the employer in order to be effective."

Advocate Prerna Jain LawRato