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Regarding enforceability of bond signed by employee
20-Oct-2023 (In Labour & Service Law)
Sir, i was employed in a hyderabad based firm in the U.S.. Before joining, i had signed a document saying i will work for 1 year failing which i shall pay the company a penalty of 3 lakh rs. The said company got my H1b visa and paid for my ticket. I resigned after working in the company for 6 months. I received a notice to pay the penalty amount from their lawyer. Pls advice how i should proceed. Regards
The conditions stipulated in the employment bond should be reasonable in order to be valid and, therefore, even if unreasonable condition/clauses are stipulated in the contract such as imposing exorbitant duration of compulsory employment period or huge penalty upon the employee, the court shall award compensation only if it determines that the employer has incurred loss by such breach of contract. Thus, you can challeng the employment contract and the bond on the ground that it lists unreasonable conditions.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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