Is It Legal for a Company to Demand 6 Months' Gross Salary for Breaking a Service Bond?

Good morning,

My friend signed a bond with the company upon joining, which they (the company) refer to as a service bond. The bond is for 2 years and is documented on a 100 Rs. stamp paper between the HR person (company representative) and the employee.

If the employee leaves the company before the stipulated period, they are required to pay six months' salary to the company. In this case, the employee has broken the bond and joined a new company. The previous company is now requesting payment equivalent to 6 months of gross salary.

I am seeking clarification on the legality of this bond. Typically, I have heard that the amount to be paid is based on the basic pay only, but in this instance, the company is asking for 6 months of gross salary.

Your valuable suggestions would be greatly appreciated as I am looking to assist my friend. :( :(

Hi,

First of all, I suggest that you look into the bond agreement. If you have it, find out what clauses they have incorporated in the bond. Determine whether it is based on basic pay or gross salary.

Regards,
Prasad

When you sign the bond with any company, if possible, tear the bond the moment you sign it. When there is no bond, no salary will be taken back, and you can leave the company.

The other route to exit the company is to inform the HR personnel and tell them whatever you can do, do it, and it will not make any difference to me. Pull up your socks and run away from there.

Good morning Prasad,

Thanks for your reply. In the bond, they have written that we are given so & so salary to the employee from this date. There is a clause that if the employee breaks the bond, he should give six months' salary. However, there is no clarification whether the salary is basic or gross.

At the time of joining, the salary is different, as mentioned in the bond paper. Upon leaving the company, it was more than that. The company is asking to pay an amount which is the last salary (more than mentioned in the bond).

Please give your valuable suggestion.

With regards,
Prashant