Feeling Trapped by a Job Bond in India: Is It Legal to Leave Without Paying?

Hi, I joined an organization in February, and they made me sign a bond stating that I can't leave the organization for 2 years. If I leave before 2 years, I have to pay 2 lakhs Indian Rupees to the organization. Now, my question is, is this bond legal in India? Can the company take any legal action if I leave the organization without paying before the bond's duration ends?

I am asking this because the work culture there is very bad, and they are exploiting us. We are helpless because of the bond. But now, I can't continue this way. Please share if you know anything in this regard.

There is no bonded labor in India. You can quit the company with a notice period. No legal action can be taken against you. The court will not accept the bond you have signed. Regarding monetary commitments, you need to check carefully before departing. You may have to pay if they have provided any training, and the training cost may need to be repaid.

All the best.

Thanks,
Vijay

Vijay is correct. It is not legal in India. Just check the notice period and terms and conditions related to the monetary aspect.

Thank you for your enlightening information on the query. If an employer does not provide training equivalent to the so-called training cost and simply assigns a trainee to a job, can they substantiate the claim if the trainee does not make the payment? What negative effects might arise if a trainee departs from the organization without settling the claimed training cost and moves to another organization?

Hi Vineet,

Bond is not legal in India. The employer does this to secure himself. But the employee can always state that the bond was initiated forcibly. Bond does not hold good in the court of law.

Cheers!!
Sharath

Hey, Just Chill Out, Vineet.

We are no slaves. Rules are meant to be broken. Well, jokes apart, you have every right to leave if you are not happy. Look out for a better job, a job of your choice. And if they ask you to pay, smile and say, NOOOOOOO.

Dr. Srini

If you have become frustrated within 4 months, it might be better to consider leaving the organization. Additionally, do not pay anything from your pocket and refuse any deductions from your salary. Although the employer may cause trouble by withholding your dues, it is likely that within 4 months, your outstanding dues will be minimal. Since you are probably under probation, the notice period may not apply. Just as the employer is unlikely to take legal action for refusing to pay 2 lakhs, they also anticipate that you will not pursue legal action to recover dues, resulting in non-payment.

Moreover, be prepared for the possibility that you may not receive a work certificate or a relieving letter from them. The employer might also speak negatively about you within their circles or to any potential future employers who seek references.

If you need further assistance, please feel free to contact me at [Email Removed For Privacy Reasons].

Regards,
Manoj

Hi Vineet, you have to say thanks to Srini because he is correct. If you are not happy with your job and working culture, then you can quit. Still, there is no law binding humans to unhappy conditions. Okay, I also say the same thing: if they ask you to pay, smile and say... NOOOOOOOOO.

Regards,
Amrish Singh Raghuwanshi

Experience in HR and Legal Insights

I have worked in senior management positions in HR/Administration in both the public sector and private sector for over 35 years. No employer ever thinks of going to court as the "bond" will not stand scrutiny in the court of law. However, it is always advisable to leave in a friendly manner to avoid challenges in finding employment elsewhere.

Regards,
R K Bhasin
[Phone Number Removed For Privacy Reasons]

No employer can compel you to sign a bond, and if you do sign a bond under pressure, then in that case, as per the Supreme Court of India's order in one judgment, the employer is considered a very powerful person, whereas an employee is considered a very poor person who is employed for the purpose of living. So, no employer can reimburse any kind of money from you in any manner. Do not worry; these are just formalities that a company carries out while employing a candidate.

If anyone harasses you, just go to any criminal or consumer court and file a case if you are financially strong enough. If you have any kind of problem, please do not hesitate to call me on my cell number [Phone Number Removed For Privacy Reasons]. I am also working in a company in the legal department and have completed law.

Regards,
Sonu.

Understanding Employment Bonds and Legal Implications

Many of the messages simply say, "ask the employer to go to hell." Of course, for freshers, this may sound appealing. As you progress through the ladder, you will have to take it seriously. The law is not that simple. Bonds are enforceable in a Court of Law, and employers seek the shortcut of Arbitration, not Courts, for enforcing it.

So we should not be easily carried away by general statements, and every case of a bond will stand on its own facts. Take it easy but seek advice before you want to break one and safeguard by preventive action. As it is said, there will be loopholes in each case, so look out for them. Suggesting that you should be unconcerned about it may ensure that the problem will land on your head in a big way later.

With Regards,

Regards

Check the wordings carefully. If it says that training cost will be recovered from you and the amount has been mentioned, then the company has a legal right to ask for compensation from you. My advice is to show the contract to your lawyer before you sign it.

Hey guys, I think the other way! From a legal perspective, if you have come to an agreement with the company or an individual as the relevant laws suggest, I'm afraid you need to comply with it. We have corporate examples like TCS, et al., winning cases over employees for breach of contracts. There's no room for an HR dialogue in this. This should be seen and discussed from a legal perspective. And if that favors, we definitely can think of an HR dimension in this. Just sharing my thoughts.

Thanks, Praseed.

After reading everybody's views, I am now confident that no one can stop you if you do not want to continue with your current company. I mean, lots of things were wondering in my mind, i.e., what will happen if I do not complete the signed duration, what they will do, and if my future will be the worst. So, thanks a lot, guys. Be in touch.

Dear Mr. Vineet,

No worries. Employers do not have the right to sign any bond with employees as per the act. Also, you are not a confirmed employee, so please provide a two-day notice and bid goodbye.

Anil

Thanks a lot, everyone, for helping. Just one more thing... they are not accepting my resignation, so I am planning to leave the organization without resigning. In this case, can they do anything? Can they create problems for me when I join another company because I have an offer in hand and I am planning to join it? Also, I have not filled the NSR form for them.

Regards

There is no law in India that allows the signing of a bond between an employee and their employer. It is illegal, yet employers often have employees sign bonds because they know the employee may be unaware of the illegality and will continue to work for the company until the bond period expires.

You can leave your job by providing the notice period that was agreed upon when you joined the company.

Wishing you all the best.

Regards,
Farzi

In my office, people have not only asked us to sign the bond but also have taken our original mark sheet, saying they would return it after two years only when the validity of the bond is over.

We can't say that the bond is invalid. It depends upon the terms and conditions laid down in the bond.

Prasad

I posted my comments two days before. But incidentally, they are not there. How come?
R K Bhasin

Re: Is bond legal in India?

It is not correct to make the issue very serious. Each case depends on its facts. Therefore, it is better to seek advice from legal experts or HR seniors in Cite HR and then assess the risk.

With Regards,
[Email Removed For Privacy Reasons]
Mobile: [Phone Number Removed For Privacy Reasons]