Bond in MNCs - bond breakage conditions were mentioned as 50% of total payment

Hi Everyone,

I joined an MNC in September 2018 and signed a bond for 3.5 years. Now, I have completed 2.5 years and am willing to leave the company. The bond breakage conditions were stated as 50% of the total payment and a few other small amounts. They mentioned that I would be in a training period, but in reality, I did not undergo any training and directly started working at the client location in 2 months.

Could anyone please help me? The calculated amount I need to pay is around 10 lakhs. How can I negotiate or explore other options? I have attached the bond breakage details here.

The clarity can be drawn from your letter of appointment to read along with the bond to suggest the remedy. Please share a copy of the appointment letter.

As you have unconditionally accepted the terms and conditions of appointment you are bound by it. The extracted portion cannot be said to be against public policy or the general law.

The section 73 of the Contract Act 1872 states that “When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the or which the parties knew, when they made the contract, to be likely to result from the breach of it. When the contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it." So here, since the compensation has already been defined and accepted by the parties you cannot escape the same in the long run, if the management really pursues the legal option available to them.

Many organisations pay joining bonus to get rid of such liabilities. You can negotiate with the new employer for getting you the release money.

Prabhat Ranjan, there is nothing mentioned in the appointment letter regarding the bond.