Facing Legal Action for Breaking a Job Bond: What Are My Options Now?

I have resigned from J.En. in a state PSU on 6.2.2014 and joined the same state government as a lecturer on 12.2.2014.

My previous job had a bond condition, according to which I cannot leave the company before completion of 3 years; otherwise, either I or my guarantor have to pay 1.5 lac. Now, that company is warning me through notices that they will take legal action against me....

Any bond to restrict or bind an employee is illegal. A company can use a bond to recover the amount spent on providing any specific training to an employee, and nothing more. However, since the company has already sent you a legal notice, it is advisable to respond to that notice promptly, either by yourself or through your lawyer. Don't remain idle.

There seems to be an error either in the DOJ or DOR that you may like to correct in your post. From the content of your post, it's assumed that there was no unilateral arrangement between you and the PSU linked to the offer made to you. By signing it at the time of joining, you became a party to a legally binding contract, so it would be tenable in the court of law. Please consult an attorney with all your documents. Best wishes!

Thanks to you all.

Is there any danger to my current job?

There is no danger to your current job, but you will have to discharge the bond by making a payment as Government function is a Sovereign function. It's different than the normal functioning of a private company.

This opinion is based on the facts provided by you above.

Mr. Verma,

Please make a written disclosure to your employer and make sure that there is no HR policy that could impact your employment at a later stage.

Best wishes!

Law does not treat separately whether it is a private, PSU, or government sector. There is no precedent where the court has awarded or imposed a fine or punishment for breaking a service bond agreement unless it has resulted in pecuniary loss or affected the goodwill of the company. However, costs incurred, if any, in imparting training to the employee are recoverable and can be entertained by the law.

You are advised to reply to the notice through an attorney to avoid any future complications.