I have an employee service agreement signed with my current employer which has 2 clauses –
1. If I leave the organization with a period of 2 years from my joining, I will be liable to pay the company any additional cost they have incurred on me like, trainings, visa processing etc..
2. If I breach the agreement before completion of 2 Years the company will not provide me with relieving/experience documents.

I have completed 1 year with this organization and recently received a better job offer which I would like to pursue. Now the company is refusing to provide me with my relieving documents based on the signed agreement. I would like to highlight that –

1. I have not been provided with any Trainings etc.. so no additional cost has been incurred on me.
2. I am on bench for last 4 months with no projects and no career growth. Hence, I am justified in looking for a better job offering me growth and work.
3. When the present company made me the offer there was no mention of a 2 year service agreement mentioned. However, on my date of joining they made me sign the service agreement without me realizing what I was signing was a kind of a “bond” of two years.
4. My notice period is of 3 months and I am also ready to serve out the entire notice period.

Please let me know if I take legal action against the company to provide my relieving and experience documents, would the same be justified.

Thank You.

From India, New Delhi
Partner - Risk Management
Educator, Management Consultant & Trainer
Advocate & Consultant
Insolvency N Gst Professional
Recruitment/talent Acquisition, Career Counselling
Software Engineer


Thank you for your response.
So, if I understand you correctly you are saying that a company is justified to have an employee sign a bond or an agreement which has no consideration.
Usually any agreement is considered valid if it has a consideration i e, a company will do so and so for an employee in return of which the employee should serve a minimum of two years in the company. however, in my case the agreement has no consideration , it just forces an employee to sign a service agreement for two years.
Please confirm.

From India, New Delhi

Thanks Nathrao.
Although, since my relieving letter is mandatory for me to join my next organization , I am only left with an option to take legal action as I have worked with the current company for over one year and the documents cannot be denied.
Thank You.

From India, New Delhi

Dear Puspinder,
You can be advised for the correct way of legal action after reading your employment contract and other employment documents. In your above mail some violations of employment laws are visible which may be the ground for taking the legal action against your employer.
Thanks & Regards
Sanjeev Kumar Baliyan
Advocate & Consultant
Mobile: 9971589511

From India, Pune

Dear Pushpinder,

Company has strategically documents ready against you in case you leave without notice.Its not un usual that companies build up cases against any one even if there is not substance and to afford to loose as a matter of strategy.Its usual for employees not to waste money and precious time of life which nobody can sustain by litigating being a weak party. You build up a case and don't go to fight as first party.In such cases like yours first party looses cases .You write mail stating facts and demanding assignments wherein you mention that otherwise in absence of assignment for you , you are loosing your knowledge wealth and making incapable of potentials for which you were employed. If you fight and work paralleled in any other company, you will have to go to court and incur cost for some unlimited time thereby you will have lot of harassment and uncertainty before you.



RDS Yadav

Labour Law Adviser

Director-Future Instt Of Engg & Mgmnt Technology

From India, Delhi

Thank you sir.

However, in my case, I am not leaving without notice. As per my agreement the notice period is of 3 months and I have already told the company I am ready to serve out entire 3 months and what I am demanding in return are my relieving documents.

Also, the agreement I have signed is completely one sided with no consideration and based on my knowledge such agreements are not enforceable by law. As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void.

Also, The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer. Any act on the part of company e.g. retaining the original educational certificates/ creating any kind of impediments for the concerned employee to join a job(i.e. to earn) will adversely mar the cause of company.

Also, I have tried all polite dialogues with the management but the only option now left is a legal action against the employer.

Please advice.

From India, New Delhi

""As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void.""
This has different interpretations and may not be correct in totality.
You have knowingly entered into a contract.
There is no patent illegality seen on the face of the contract.
One would have to examine your specific case and then comment or give advice.
Advice you to consult a local lawyer for correct guidance.

From India, Pune

If your new company does not accept you without relieving letter, then you are out of luck. Even after you have explained the matter, if they still insist on it then you can not take up the opportunity.

Taking legal action against your employer is really stupid. The court will hear your case 5 years from now. You will be without a job till then.

Al the arguments you have given are spurious. You signed an agreement knowing what it said. Consideration is there - you were given a job. They are not asking for repayment of training cost (I assume no formal training was conducted). But they can not be compelled to relieve you. At best you get an experience certificate if your state shop act provides did it. If not, even that is not a compulsion.

Even if you go to the labour officer and complain and he gets you a relieving document during background check they will say you broke the bond and tried to cause legal trouble, you will be out of the street again.

You are basically in a bad position. So you need to tread carefully

From India, Mumbai

Hello Pushpinder,

I am surprised with your line "....on my date of joining they made me sign the service agreement without me realizing what I was signing was a kind of a bond of two years".

Frankly, you are not a kid born yesterday.....YOU ALWAYS had the option of NOT signing it.

But still you signed it. Did someone put a gun to your head to sign it?

Your Posting is a bit contradictory w.r.t the training & Visa.

Has the Company given you any training or not [DON'T get into the loop of that it was not anything worthwhile, etc]?

And did they apply for any Visa for you? Pl note that Visa Application costs to the Company....and cost also depends on the Visa Category.

You have not mentioned your experience level....but since you say that you have been on bench, I presume that you are NOT a Fresher for sure.

And when you knew all thru that there's a Bond, on what basis did you apply for other/new jobs in the first place?

All the points you mention SEEM surely afterthoughts now that you got another job.

And like Saswata Banerjee mentioned, going legal is NOT that simple/easy. Though there may be DEFINITE grounds for going legal, the practicalities will SURELY have to be kept in mind. I am sure you know this aspect of the Indian Judicial system.



From India, Hyderabad

TS ..
Firstly, I would suggest to keep a check on how you communicate on public forums..and please learn some manners.
What I asked was an advice ..not any random person to vent out his other frustrations ..
On my day of joinging..the comany said I had no option but to sign it, if I didnot ..my offer would be withdrawn..now please tell me who in this country would risk his job by arguing with their company on day 1. Secondly, There was NO special training. and No visa cost..which I made clear in my post..hoping that people who advice can comprehend English language, which is not the case with you.
Hence, I would suggest keep your random, biased and uneducated advice with you. and stop misguiding people in this forum who are looking for genuine suggestions.

From India, New Delhi

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