Facing a Bond Dilemma: What Can I Do If My Company Threatens Legal Action Over My Exit?

I am currently working with one MNC in India and I have signed a one-sided bond of two years stating that the company can ask me for the amount they have spent on my training as well as my monthly stipend. I am working as a 'trainee' right now with a total of 11 months of experience here. I am billable on one project and my bond was not on any stamp paper or notary registered.

Now I'm flying with my husband to the US on a dependent visa (F2) as he is going to continue his studies. I can't stay here, but my company is threatening to inform the US consulate to stop my exit from the country and file a case against me. They are asking for more than 2.5 lakh from me before giving me a relieving letter, and I'm not in a position to pay such an exorbitant amount.

What are the consequences in such a situation? What should I do? They are not even ready to accept my resignation. I have tried everything to make them understand my problem and have even offered the amount the company spent on my training. Please help!

No one can force another to work for him or her. That would be bonded labor, which is outlawed by the Indian Constitution.

No, insofar can the company take you to court for not paying the exit fees, yes they can. But then such eventualities are few. If you are hauled up, then you have to raise the defense that the contract was one-sided, with unconscionable terms, and the damages claimed are, in fact, penal in nature. Courts in India will not compel specific performance of the contract, i.e., force you to work, but if the damages asked are reasonable and it is proved that you had a chance to amend the contract before signing it, then it may award the damages against you. Therefore, the entire contract as a whole becomes important.

Thanks a lot for your reply. I am not much worried about my bond but my main problem is regarding my journey to US. They are continuously threatening me to inform US consulate about my breaking the bond & showing is as my infidelity towards company.
I don't know whether consulate attend such reports or not. I am worried if consulate will take some wrong step against me then it'll be a big problem to face.

Let us presume that you have entered into a legally valid bond with your employer and due to unavoidable circumstances, you are not willing to continue. In such a case, the employer will be entitled to file a suit for the recovery of liquidated damages on the grounds that they have spent on your training. It is advisable to obtain a copy of the so-called bond you entered into with the company and understand its implications. Normally, such bonds do not hold up in court on one point or another, and the US consulate will not interfere in such petty matters. I don't foresee any awkward situation for you on this account.

Deepak Thukral
Chandigarh