Resigned After 7 Months, Now Facing a 3 Lakh Training Bond Demand – What Should I Do?

I have been working in a company for 7 months and have resigned. Now, they are asking for a training compensation of 3 lakh as a bond. I have not yet received my confirmation letter from the organization. Below are the terms mentioned in the offer letter.

Probation Period

1. You will be on probation for a period of six months from the date of joining. The Company retains its right to extend your probation if your services are not found satisfactory. On successful completion of your probationary period, you will be confirmed in the services of the company, such confirmation being in writing.

Termination Terms

2. You or the Company can terminate your employment without notice while under probation or with two months' written notice after confirmation.

Training and Employment Bond

3. The Company will invest a considerable sum to train you and to bring you up to the industry standards. As a result of these expenses, you agree to maintain employment with the Company for a period of no less than two (2) years from the date of your employment start date.

Regards

Fundamental Rights and Employment Bonds in India

Article 19(1)(g) of the Constitution of India confers fundamental rights on the citizens of India. This article allows citizens the right to practice any profession or carry on any occupation, trade, or business, subject to reasonable restrictions in the public interest. Any restriction on this fundamental right of any citizen goes against the protection granted and guaranteed in the Constitution. Therefore, such actions can be challenged.

Furthermore, Section 27 of the Indian Contract Act, 1872, states: "Agreement in restraint of trade void: Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is, to that extent, void."

Topics for Further Study

- Bond Breaking - Is It Legal In India?
- IT Services - Employment Bond/Service Bond
- Does the Bond System Prevail in India?
- Validity & Applicability of Employee Bonds
- Labour & Service Law Experts - Employment Bond - Very Urgent
- Labour & Service Law Forum - Is This Kind of Employment Bond Legal in India?

Please note that service agreements or bonds by themselves are not illegal unless a forceful signature was obtained.

Read: "Is employment Bond valid in India?" by venghatsrinivas.

Weigh your pros and cons and proceed accordingly. Senior members are encouraged to contribute, and legal advisors can provide real help.

Attribution: https://www.citehr.com/461008-resign...#ixzz2U1Ks8K2h