Unexpected Service Agreement at Work: What Happens If I Break It?

I have joined a big IT company as a process associate. At the time of joining, they did not inform me that I have to sign a 1-year service agreement. However, after 3 months, they are now asking for it. Is there any way to stop that? Because they did not mention it during the interview or when I joined. My manager assured me not to worry and said nothing would happen if I break the service agreement. What would be the consequences if I do break the service agreement?

One more thing, I do not have any clause of the service agreement in my appointment letter. Please help me, what should I do?

Since the same is not mentioned in your appointment letter, you do not need to execute the service bond. If you sign a service bond, then the company will be at liberty to initiate legal proceedings against you in case you violate any of the terms and conditions mentioned therein. However, the consequences and the enforceability of the service bond can be determined only after scrutinizing the terms and conditions mentioned in the same.

Regards,
Satori S.

Service Contracts in IT Companies

If it is a big IT company and they have not informed you at the time of offering, then it is a big blunder. Some HR executives take it for granted. Nothing will happen if you break the contract; it is not valid advice. If it is a big company, then sign and continue as specified in the contract. It is good for your career. Breaking in-between will surely result in consequences that may not be pleasant.

I have already mentioned in this forum that contrary to many views, a service contract is still a valid document. Some clauses can definitely be questioned, and one can give an opinion only after examining the agreement and systems in the organization.

Whether you should sign or not is a question that has to be answered only by you, as you know the circumstances you are in.