Service Bond
Aman Kansal
(Querist) 07 December 2016
This query is : Resolved
Dear experts
A person doing job in PSU where he had draft service bond of rs 300000 (5000�60). Rs 5000 is deducting from my salary and will be deducted for continuously for 60 months. If he gets the better opportunity than here and leaves the current job not through proper channel, can the company has full right to recover the remaining amount which has not been deducted from salary yet(as per service bond)
I have heard that there is a court decision, which states that no agreement can restrict or make a wall if the employee gets better opportunity than here.
Please give your valuable feedback and suggestions expected.
Thanking you.
Guest
(Expert) 08 December 2016
That will prove to be a hard nut to crack for you by fighting money and time consuming legal battle with the company and also by earning ire of the employer. In fact, you could have thought well before signing the bond.
Of course, you are free to avail better opportunity, but that can be at some cost in the shape of payment of bond amount.
However, you are also free to challenge the company on your binding, but signing the bond at your free will can be considered as your voluntary agreement with the company to render service for the minimum period of 5 years.
So, if you have enough time and money to waste, you can resort to legal battle against the company, but still with no guarantee of positive results in your favour.
Best of luck!
Kumar Doab
(Expert) 08 December 2016
As per your post, the escape by paying liquidated damages seems to be narrated in private agreement termed Bond, drafted by employer and placed before you by employer and signed by you.
Thus you can invoke such clauses and get relieved.
However you need to ascertain if you will get proper relieving documents, if you separate before 3 years?
As far as the question of Bond being unconscionable,unreasonable, void is concerned you may show it to your own counsel specializing in Labor/service matters at your location, along with job advt,job application,interview call letter, selection letter, offer letter, appointment letter, service rules, standing orders, Bond....................etc etc, for a considered opinion.
Rajendra K Goyal
(Expert) 08 December 2016
The document need to be referred, discuss with your lawyer.
Sankaranarayanan
(Expert) 08 December 2016
What way you be related to this issue? state the facts fully as pointed by the experts.
Kumar Doab
(Expert) 08 December 2016
Post what is the considered opinion of your own counsel well versed with such/service matters and that has examined all docs and inputs.
P. Venu 
(Expert) 09 December 2016
"A person doing job in PSU where he had draft service bond of rs 300000 (5000�60). Rs 5000 is deducting from 'my' salary and will be deducted for continuously for 60 months."
"My" reveals that you are the person concerned; then, why this hide and seek?
Kumar Doab
(Expert) 09 December 2016
Indeed all docs need to be carefully examined to fetch clean relieving as well as refund of liquidated damages if any paid.
Aman Kansal
(Querist) 09 December 2016
Thanks everyone.......Yeah this case is related to me purely.....any court decision which can help me a lot....???
Rajendra K Goyal
(Expert) 09 December 2016
Judgment / reference cases / ruling / citation / decided cases not provided / supplied in this section.
Kumar Doab
(Expert) 09 December 2016
Court decision for what?
The employer has probably narrated in private document titled (Bond) the liquidated damages that you can pay ( probably prorated) and separate.
What is the issue?
Clean Relieving OR Liquidate damages?
Rajendra K Goyal
(Expert) 10 December 2016
please clearly mention the issue as pointed out by the expert Kumar Doab.
Aman Kansal
(Querist) 10 December 2016
Thanks to all.....I think I got the process to be followed for get rid of this issue.
Thanks a lot
Kumar Doab
(Expert) 12 December 2016
You are welcome.
WE are happy that you know post discussion in the thread, how to handle your issue.
Still you may come back.
