Service Bonds and Legalities: Can Employers Enforce Payment for Early Exit?

Dear All,

What is the legal sanctity of a service bond that a company enters into with an employee to serve for a particular period, failing which the employee has to pay liquidated damages to the company? Can the employer invoke the clauses of the bond to recover the amount?

This entirely depends on the clauses of the agreement. If the agreement is one-sided and only binding on the employee, then the agreement will be void. The employer has to prove the losses incurred by him due to the employee deserting.

Suppose there are sufficient clauses for claiming "Liquidated Damages," and there is an arbitration clause/arbitrator, and also the employer has heavily incurred on imparting training to the individual.

The arbitrator has given his award in favor of the employer. Then what is the position....