Dear All,
I have a very serious query in my mind.... Is employee bond valid as per the labour laws in India? If yes could you please share few information regarding the same and its applicability. Thank you.

From India, Pune

Dear Unni,
According to the Law, if an employer is investing in employee then bond is eligible with the condition that before the training/investment the employee is having less than one 1 year experience.

From India, Chandigarh

Kindly note that no employer can bond any employee by any bond,the legal system of India clearly abolished bonded labor system long back,and under no circumstance no person can bound other by any contract to waive of his legal rights guaranteed under the constitution of India,Article 19 guarantees the right to work and this right neither can be waived of by the employee on his own will nor the employer can force any contract in contradiction to above mentioned article
yes the employer can bond his employee for payment of any expenses incurred by the employer as part of training provided to employee,but this training should be provided to an employee by the employer for any other purpose than increasing his productivity in the organisation as an employee
yes the employer can stop his employees from working in its competitors organization for a certain period of time

From India, Mumbai

dear unni,

As far as entering into service contract there has to be a legal framework wherein both the parties agree to conditions mentioned in the service contract. The employer can enter into contract with the employee on certain conditions:

1) That the service is for specific period and the employer has not bounded the employee for specific period of his own. The service of the employee will conme to an end after completion of the period.

2) both the parties have the right to terminiate the contract after giving notice of specific period.

3) Any service contract cannot be a part of regular employement.

4) The employer has not put any kind of restriction on the movement of the employee taking into consideration that after specific period or notice the employee has the right to work in any organisation.

5) As per the bonded labour act no employer can restrict the freedom of work in any condition but service contract for a specific period is not a bonded labour condition as the employee enters into contract with the employer at free will.


From India, Jaipur
actually i am a fresher and have recently joined a bank, before joining they have made me sign a bond for 4 years and if i break the bond i would have to pay rs 100000. they have kept all my original certificates.
in this regard i want to know is such a bond valid and if so is there any duration for its validity.
also they have provided me training.
basically i want to know if i serve the bank for say 2 years they can recover cost of training so can a bond of 4 years be valid....plz tell

From India, Lucknow
YOur bond is not valid. As they have provided you with training pertaining to the processing of the banks work which any way they have to do if they are hiring a fresher.
If you are happy in your present co why are you worried abt breaking the bond?
Two more years learn as much as you can from the bank.
If you are facing any problem, then try to consult a legal practioner with your appointment and ask for the right cource of action. all the best.


If they really provided training and spent money on your training, yes you are liable to pay or they may take legal action
From India, Pune
i have signed the bond for 2 years. clause is if i resign before 2 years i am supposed to pay 50000 to company. i had join this company as a fresher now its been 1.9 yrs i am working in this company now i am looking for good opportunity.
So can any body suggest me that if i break the bond then i has to pay the amount or not.
Thanks in advance

From India, Mumbai

I do agree with experts here that negative covenants like - restriction after leaving job and non-competent clause in employment bond is illegal and have no legal standing. But question is, how to resolve dispute?

In my case i left the job mutual agreement (written proof) and full and final settlement. After 8 months of leaving I started the similar work and Legal Notice was served to me - that I am absconding without notice, breached non-competent clause. And Ex-Employer invoked the SOLE ARBITRATOR Clause, which will biased for sure.

Please note: Ex-Employer didn't spent a penny on my trainning, infact I trained their team for analysis, I have been hired as an expert to enhance their product offering and in fact gave them profits. Later on we both agreed that we should close down the unit as we didn't generate enough profit as per estimation.

Now they consider me as future threat and doing arbitration proceedings against me and asking 5 years of salary (validity of the bond was 5 years but agreed to end relationship after 9 months)

Since arbitration is one sided and will be biased, what options do I have?

I know in a court of law I stand clean.

Please help / suggest!



From India, Delhi
Need your Help to clarify the clauses in a training agreement (in Sri Lankan context)
I have been asked to sign a six months training agreement for the post of trainee manager that says
" the trainee should pay ........... this amount (equivalent to the payment for the trainee for six months ) if the trainee terminate the agreement.
Trainer has his sole authority to assign the trainee in any work place,prescribing work hours and leave and will instruct the trainee within the period.
Trainee is entitled to Annual , casual leave and Superannuation benefits according to Shop & Office Act 1977 Sri Lanka.
The trainee should work for 6 yrs within the company if he / she has been absorbed to the permanent Cadre and (this agreement doesn't assure an opportunity)after the successful completion of the programme.
It doesnt include a training schedule or evaluation criteria????
Pls help

From Sri Lanka, Colombo
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