Dear Seniors, I am willing to know that service bond is legal in india and can we also put recovery option and what is the limitaion. waiting for reply.
From India, Delhi
Acknowledge(1)
Amend(0)
1From India, Delhi
Acknowledge(1)Amend(0)
The Service Bond/Service Agreement Bond is indeed legal in India. It depends on the employer and employee regarding the kind of recovery amount they would incur from the employee. Certainly, a breach of the bond/agreement within the stipulated period indicates that the loss to the company by training the employee has to be recovered.
Types of Service Bonds
There are types of Service Bonds depending on the organizations: Generally, a short-term corporate bond is usually less than five years, then there is 5–10 years, and long-term can be above 10 years.
You might be wondering why the service is categorized this way. This is because corporates have higher yields, and their employees are crucial for profits. By providing them training, they are upholding business. If such an employee breaches the bond within the required period as per the agreed bond, they would pose a high risk for the company in terms of quality and manpower as well.
I hope the above information serves your purpose.
Regards
From India, Visakhapatnam
Acknowledge(2)
Amend(0)
Types of Service Bonds
There are types of Service Bonds depending on the organizations: Generally, a short-term corporate bond is usually less than five years, then there is 5–10 years, and long-term can be above 10 years.
You might be wondering why the service is categorized this way. This is because corporates have higher yields, and their employees are crucial for profits. By providing them training, they are upholding business. If such an employee breaches the bond within the required period as per the agreed bond, they would pose a high risk for the company in terms of quality and manpower as well.
I hope the above information serves your purpose.
Regards
From India, Visakhapatnam
Acknowledge(2)Amend(0)
Please see the interesting decision (latest) regarding the service bond in India: https://www.citehr.com/423676-legali...ml#post1925933
From India, Kochi
Acknowledge(1)
Amend(0)
From India, Kochi
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
BOND BY AN EMPLOYEE FOR NOT ENGAGING HIMSELF.doc
Employer suit for breaking service bond within 3 yrs - Delhi HC 5.9.2014.pdf