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Not Joining company after signing appointment letter and bond
18-Jun-2025 (In Labour & Service Law)
I have signed the offer letter of the company a month back, and now the company has given me appointment letter and 3 year employment bond agreement (with rupees 6 lakh penalty) to sign 1 month before my joining date. I had kept this job as a backup, and wanted to pursue better offers. I think I'll have to sign these documents now only, otherwise they might rescind the offer.
So what will happen if I sign the appointment letter and bond agreement, but decide not to join the company?
In that scenario since you have signed the bond it naturally makes you liable. However, such liability can be challenged in court and can be waived off.
To tell you the exact consequences I need that t&c of appointment letter .
if you need any further assistance, feel free to contact me.
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Adv. Ishan Parashar
Delhi | 200+ Answers
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Do get the contents of the appointment letter and bond agreement legally perused from an Advocate and seek his considered opinion. So brief him and act as per his advise only. Need to check for any onerous clauses in the agreement
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Adv. Anubhav Kathuria
Delhi | 1000+ Answers
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If you sign the appointment letter and bond agreement but later decide not to join the company, the company may attempt to enforce the bond and claim the ₹6 lakh penalty. However, such bonds are generally enforceable only if the company can prove actual financial loss due to your non-joining. Indian courts usually view employment bonds strictly and assess whether the penalty is reasonable or excessive. If no services are rendered, enforcing the full penalty may be difficult. It is advisable to seek legal counsel before signing any such agreement under pressure.
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Adv. Nidhi Mathur
Delhi | 50+ Answers
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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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