Feeling Stuck: How to Handle a Service Bond Dispute When a Better Job Comes Along

I was working in a Pvt Ltd Company, and my net salary is Rs. 4600/- per month. After 1 and a half years, I resigned and joined another company, but within two weeks, I realized that my new job was not a good fit for me. I came back to the old company for rejoining. The company allowed me to rejoin with a condition that I have to sign a service bond mentioning I couldn't leave before two years and if I do so, then I will be charged Rs. 50,000/-.

At the time of rejoining, I did not fill any kind of form. As I was in urgent need of a job, I signed the bond and received my appointment letter; that's all. Now, after 6 months, I have a good opportunity in a Ltd Company with a better salary. I tried to negotiate for Rs. 50,000/- out of court, but the old company is not ready. The company is saying it will file a case for breaking the service bond or pay Rs. 50,000/- through the court.

I have heard Pvt Companies don't go to court regarding service bonds. They just threaten the employee. My local lawyer is saying, if the company files a case, then you have to fight.

I am afraid and confused regarding the court case. Please help.

This is for your information – let me tell you that there is no bond for employees which exists in the eye of the law. So if you want to change your job, go for it.

Regards

Hi,

Thanks for your comment. Tell me one more thing, what about my PF? As I have terminated the bond and provided a notice period of one week for leaving the job through email, they will not issue me a release letter (which I don't require). However, I am concerned about my PF money because I am aware they will not sign the PF form. How can I withdraw or transfer my money to my new PF account in the new company?

Dear Mr. Shail360,

First, you need to address your initial issue by resolving the service bond matter with the company. After that, you can focus on your PF and other benefits.

Regarding your PF, simply fill out Form 10C and Form 19 and submit them directly to the relevant PF commissionerate. The staff at the PF commissionerate will assist in obtaining Form 10 and PF Remittance details for the current Financial Year from your previous employer.

All the best.