i works in a company since 7 months and have resigned ,now they are asking for training compensesation of 3 lakh as a bond ,i have not yet received my confirmation letter from the organization below are the terms mentioned in the offer letter .
1.You will be on probation for a period of six months from the date of joining. The Company
retains its right to extend your probation if your services are not found satisfactory. On successful
completion of your probationary period, you will be confirmed in the services of the company, such
confirmation being in writing.
2.You or the Company can terminate your employment without notice while under probation or
two month’s written notice after confirmation.
3.The Company will invest a considerable sum to train you and to bring you up to the industry
standards. As a result of these expenses; you agree to maintain employment with the Company for a
period of no less than two (2) years from the date of your employment start date. If a

From India, Pune
Also note that

Article 19(1)(g) of Constitution of India confers fundamental rights on the citizens of India and this Article allows the citizens the right to practice any profession or carry on any occupation, trade or business subject to reasonable restricition in public interest.

Thus any restriction on this fundamental right of any citizen goes against the protection granted and guaranteed in the Constitution.

Tell then that their this action can hence be challenged.

Further more:

Section 27 of Indian Contract Act, 1872 states:

Agreement in restraint of trade void:

Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.

Other similar attributions for your study purpose are:

1) Bond.. Is It Legal In India????? - Bond Breaking

2) Employment Bond/Service Bond - It Services

3) Bond system : Does it prevail in India?

4) Employee Bonds....Validity & Applicability

5) employment bond _ very urgent - Labour & Service Law Experts - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers

6) Is this kind of employment Bond is Legal in India? - Labour & Service Law Forum - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers

Please note that service agreements or bonds by itself are not illegal unless there was a forceful signature obtained.

Read: venghatsrinivas: Is employment Bond valid in india?

Weight your pros and cons and accordingly proceed. I would like Senior members as well to contribute. Legal advisors can be of real help.


From India, Mumbai

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