Usernamess (Service) 29 September 2015

2 year bond : it company is it valid

Hi All,

Please let me know if an IT company can hold employees by a bond for stipulated period of time.

Scenario: While joining the company the company and employee sign paper which says that there is a bond of two years. No training or any investment has been provided by company to employee.

Question: Is this valid as per the labour law/act of india.

Responses will be highly appreciated.

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1 Replies

Kumar Doab (FIN) 03 October 2015

If company has not incurred any expense or provided any training or any extra ordinary favor then the said Bond may be declared unconscionable. If company has not incurred any expense or provided any training or any extra ordinary favor then the said Bond may be declared unconscionable.

If the Bond is drafted just as that employer has provided employment to employee then it may amount to Bondage/bonded labor and bonded labor has long been abolished.