Dear friends,
Service bonds have been held by courts in many cases as contrary to the provisions of Section 27 of Indian Contract Act and hence cannot be enforced. A detailed article written by an advocate of Supreme Court on this issue is attached for your information.

From India, Malappuram

Attached Files (Download Requires Membership)
File Type: pdf Negative Covenant in Contract of Employment.pdf (108.5 KB, 1457 views)

Hi I am Rizwan, Can anybody tell me that any kind of employment Bond is valid in Pakistan? There arenumber of companies using this as a weapon to keep them attached with the company.
From Pakistan, Karachi

Dear friends, I am attaching copy of another article written by an advocate of New Delhi on the issue for your ready reference. Regards,
From India, Malappuram

Attached Files (Download Requires Membership)
File Type: pdf Employment terms.pdf (106.3 KB, 1459 views)

Resignation during bond period.?
I have signed a bond for 2Yrs and amount of 1.5Lacs. I am having family problem and requested my reporting manager to give me transfer or relieving letter. But he says that neither i will be transfered nor company will give me a relieving letter as i am under probation period. I also asked him that should i mail the HR stating my Problem and request, he denied to do so. I am going under mental stress and is not able to work efficiently. My question is company has not provided me any training nor did any expenditure. Can i leave company and whether i should give the resignation or there is some other way to leave the company without paying the bond amount. Will they create any trouble for my friend who is a guarantor of this bond. Kindly please help me out. Looking forward for your positive response. Thanking u in advance….

From India, Patna
Hi Sachhin, You have cleared all my doubts about employement bond. Keep it up. Regards, Rakesh
From India, New Delhi
I am employed with a reputed mid-sized IT services company in Pune. Mine was campus recruitment and at the time of joining, my father was made to sign a bond stating that I shall continue to work with them for 2 years or pay Rs 2 Lacs if I quit before that.
I signed the joining letters in good faith.
The promised training was only a one month session and after that for the past one year I am yet to be assigned to a real project. No wonder I did not get an appraisal because I never worked on a billable project. That apart I have by large enjoyed my association with my colleagues and seniors.
Of late the company HR has been asking all employees to sign a “No Hire” clause which states employees cannot join any client, client competitor and so on for a period of one year from the date I leave the company. I am not convinced by this restrictive clause and feel this will stifle my already stagnating career. I have avoided signing it but now the HR has been pressurizing me and at time making veiled threats – we will make your exit procedure difficult, etc. I am totally stressed and discomforted by this and finally had no choice but to resign citing the mentioned reason. They are yet to reply or accept my letter.

Now the threats have increased and I am being warned of legal notice, withholding my salary, experience letter, relieving letter, etc. I feel victimized because of my refusal to sign addendums to the hire letter. This unprofessional behavior by a certain section of the company surprises me as I have always put my best for the company and have been appreciated for my work earlier.
I continue to go on doing my work as usual but feel the pressure and an environment of threat.
Was I right in refusing to sign a one-sided clause and resigning on those grounds?
Please suggest what would be my options in such condition.


From Japan
I have joined a company by giving 2 years bond
they gave me training for 3 months from their own training dept.
Now am short of 5 months to complete my bond period
But they cut my salary by 15%
does the bond stays legal?
Can I claim for relieving letter and PF amount (including employers contributuion) ?

From India, Kochi
hi guys i am in really tense situation now a days .the problem is i have sign the bond with one of airline that will send me abroad on traning on paticular aircraft and they have made a bond that after training i have to serve company for 7 years and the bond amount is 20 lack which they showed that it is training cost and in really it is not more than 5 lack .its more than 1 month that i signed that bond and they havent send me abroad for training and luckely i got offer from other airline and therefore i want to leave this company and join other.but its written on bond that i cant leave/resign before 7 years from date of appointment otherwise it will be case of breach and they have right to take 20 lack from me but i havent took any abroad training from them till the date . and the total bond is one sided mean every thing is in there favour if they terminate or i resign than also they with charge 20 lack from me. pls guys any one of you can tell that how can i leave the company because i dont want to indulge in any legal actions which can ruin my career. thanks in advance.pls do reply
From India, Delhi
hi guys i am in really tense situation now a days .the problem is i have sign the bond with one medical company .it was a stamp paper where i signed...it was two years bond .i left the compay..now they sent warning letter.and they are saying to pay 1.35 lakhs.otherwise they will move to court,..can anybody tell me what should i do for this problem.

From India, Delhi

From India, Amritsar

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server