Is My Job Agreement Bond Legally Binding? Seeking Advice on Potential Penalties

royangilar
Hi, I'm Siva, a fresh MBA graduate. I have joined a software company as a management trainee. They are asking me to sign a job agreement bond. According to the bond, "I should work for 2 years there. If I break the bond, I should pay 2 lakh rupees." Is the bond legally valid? Should I pay that 2 lakhs if I resign from the job within 2 years? Please discuss and give me a clear idea.

Thank you.
suresh_222
Legal Implications of Job Agreement Bonds

Being an active lawyer for the past 22 years, I can tell you that no company can hold an employee to work against their will in this country. Having said that, if a company incurs some expenses for your training/visa, etc., you are required to pay the amount to break even in case you depart before your time period.

You have the right to obtain an itemized list of expenses incurred during your training period. This is usually always less than the bond amount. If the company denies you the list and your relieving letter, you can take them to court.

We recently worked on a case involving an employee with a 2 lakh 2-year bond with L&T. L&T refused to give a relieving letter to the employee after 1 year of service. After the employee asked for the expenses incurred, L&T instead provided the relieving letter without any fuss.

I would request you to ask for the exact expenses incurred by the company and pay that amount to obtain the relieving letter. I hope this is a clear idea, Siva.

Good Luck!

Regards,
Dr. TSG
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