Employment Bond Dilemma: Do I Owe Money If Fired Before Starting Work?

I have signed a bond of 2 years. It has the following clauses:

- If I break it, then I have to pay 2L.
- If they fire me, then also I have to pay 2L.

Do I really need to pay 1L if they fire me? What if I signed the agreement a few days before the joining date but did not join the organization or work there for a single day?

Why did you sign a contract where you will have to pay 1 Lakh if they fire you? Your firing can be for any reason and not just performance. This contract is not valid if you do not join the company at all. However, please re-read the agreement and see if it mentions anything like, "if you do not join you will have to pay..."

Thanks,
Sam

I have signed a bond of 2 years; it has the following clauses:

- If I break it, then I have to pay 2L.
- If they fire me, then also I have to pay 2L.

Do I really need to pay 1L if they fire me? What if I signed the agreement a few days before the joining date but did not join the organization or work there for a single day?

As soon as you sign the bond, you are agreeing to and accepting whatever terms are in it. Although one-sided bonds may not hold up in a court of law, it can be challenging to challenge them.

Legally speaking, bonds are not valid in India as bonded labor (and bonded employees) are not encouraged by our laws. Even if such bonds are signed, they are typically enforceable only up to the cost of training incurred by the employer on you.

If you have practically not joined the company and have not worked a single day, they have not spent any amount on your training, and ideally, there should be no obligation on your end. However, it is advisable to consult with a lawyer before taking any action.

Well, the law is very clear. Even if you have signed a bond, the employer may charge you only the amount actually invested in your training (this does not include on-the-job training) and not the bond amount. If you have been fired, then there is no question of any recovery from you.

Regards,
Munshi

Thanks for your valuable reply. What do you mean by "This does not include on-the-job training"? If it has a clause stating that if they fire me, I have to pay, do they recover the training amount from me if they fire me?

Thanks

Understanding On-the-Job Training and Termination Policies

On-the-job training refers to the skills that you acquire during regular work activities, such as receiving guidance from your senior colleagues without any additional costs incurred.

Moreover, if the organization terminates your employment, they are not permitted to charge you for any scheduled training that you have received.

Regards,
Munshi

Have you signed it or not? Have you joined or not? Is this a real case or a hypothetical example made up by you? If you expect help, at least provide the full details.

It is a real case. Yes, I have signed it, but I have not joined because I have a few days before I need to start there. The clauses are what I have mentioned before:

1. If I break it, then I have to pay 2L.
2. If they fire me, then also I have to pay 2L.

So, I wanted information regarding the consequences of:

1. If I break it
2. If they fire me after I join there
3. If I don't join at all.

Thanks

It would have been easier if you had given all the information at the start. I do not know your financial situation or how desperate you are for this job. But if it were me, I would refuse to join such a company that requires me to pay them if they fire me. The bond, as you describe it, is one-sided and creates an adverse situation for the employee. There is a lot of discussion on the site about bonds. Check it out.

If you do not join, the bond has no meaning. No one can enforce a bond from a company you didn't get trained by and definitely not from one you didn't work with or join. If you join, then the bond is valid if they are giving you training that costs them the amount they have put in the bond. Again, I do not think a court will enforce a bond where the employer fires the employee, except in the case of gross negligence or neglect of duty, etc. But why take a chance of having to fight it in court?