Service Bond/ Agreement Break - CiteHR
Saswatabanerjee
Partner - Risk Management
Riteshmaity
Labour Law Advocate
Sindhu571
Software Enginner
+1 Other

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Hi, I am working with a service based software company(it is also member of NAASCOM) and i signed a bond for 3.6 years. also they gave me training for 6 months now i completed 1 year service. Now i don't like the work culture and want to move out of this company. If i want to leave the organisation i need to pay 2lakhs for bond breaking. without paying this money how can i move forward. and also do they keep my name in NAASCOM blacklist entry if i simply move. what are the future consequence? Please help me.
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This kind of bond/ agreement to hold employee is illegal in India. As per Supreme Court, an employer cannot withhold its employee from leave and joining another company for his professional betterment.
However, the company can recover the amount actually spent on you for the purpose for training.
Ritesh, don't mislead people. The bond is very much valid.
The bond is for completion of service of a specific and reasonable period (3 years after com0letion of 6 months training) and has a clause to repay the cost of training as liquidated damages. There is enough cases decided by the courts in favour of companies.
Further, what the candidate wants to do is to defraud the company by walking off, joining another company and not pay the liquidated damages. Also he wants us to tell him how to stop the Company from blacklisting him on NASSCOM skill registry, which is designed to prevent from doing just this.
The Comoany has paid him salary for 6 months for him to learn ! That too, they have spent huge amount of training during the 6 months. Now that he has learned at the cost of the company and is employable, he wants to go somewhere where he will be counted as having experience and get paid higher.
Dear Banerjee,
in which law it is written that the employer can hold an employee to serve their employment by way of training & executing bound inspite that if you have any case law/ relevant section which suggest that holding an employee is valid please provide the same......
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