Breaking a Job Bond: How Should I Handle My Employer's Unexpected Demands?

Ganeshan87
I had been working with a company for 15 months. At the time of joining, this company signed a bond with me that I have to serve them for the next 3 years as they will provide training. Against this, I had given 3 undated and unnamed cheques. The bond states, "As a guarantee against attrition, you are requested to deposit with us 3 post-dated cheques of Rs. 30,000 each. One cheque will be returned to you upon completion of the first year of service, the second in the second year, and the final cheque in the third year of service."

Now I have resigned from the company by giving 8 days' notice (my notice period is 30 days). I also had 17 ELs left in my account. I asked them to release me from services as I have completed 15 months with them. As I am leaving before 3 years, I proposed that for breaking the bond, they can encash two cheques and return one to me. However, on the final day of the notice period, they demanded payment for all three cheques, which was nowhere mentioned. I acknowledge that I am breaking the bond, but for...
shah01ankita
Also note that Article 19(1)(g) of the Constitution of India confers fundamental rights on the citizens of India. This Article allows the citizens the right to practice any profession or carry on any occupation, trade, or business subject to reasonable restriction in the public interest. Thus, any restriction on this fundamental right of any citizen goes against the protection granted and guaranteed in the Constitution. Tell them that this action can hence be challenged.

Section 27 of the Indian Contract Act, 1872

Section 27 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."

Other Similar Resources for Your Study Purposes

1) https://www.citehr.com/30808-bond-le...-breaking.html

2) https://www.citehr.com/46589-employm...-services.html

3) https://www.citehr.com/5246-bond-sys...ail-india.html

4) https://www.citehr.com/25557-employe...icability.html

5) employment bond _ very urgent - Labour & Service Law Experts - Law, Lawyers, Advocates, Law Firms, Legal Help, Legal Experts, Judgements, Law Help, Indian Lawyers

6) Is this kind of employment Bond is Legal in India? - Labour & Service Law Forum - Law, Lawyers, Advocates, Law Firms, Legal Help, Legal Experts, Judgements, Law Help, Indian Lawyers

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

Read: venghatsrinivas: Is employment Bond valid in India?

Weigh your pros and cons and proceed accordingly. I would like senior members as well to contribute. Legal advisors can be of real help.
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