an appeal stop exploitation by employer thru bonds

Asstt. Manager (P&A)

I am in big trouble. I appeal to you lawyers to suggest how I can get rid of Service Bonds. Such bonds have become a menace and have started dooming many careers.

Agreement that has to be signed before one gets in this State PSU

1.       Training Period is 1 yr. Then he has to pass written test- Interview and get absorbed. And then he has to spend another 1 yr as probationer after absorption. [i.e. 1yr training + 1 yr probation.]

2.       NOC will not be issued during the training period and probation period.

3.       One has to stay minimum 3 yrs after absorption. i.e. the bond period comes out to be 4 yrs. In total.

4.       Service Bond on a 20/- Non-judicial stamp paper: Rs. 1 Lakh

5.       Agreement on a 20/- Non-judicial stamp paper: If anyone leaves the PSU in the first yr, i.e. in training period he has to pay Rs. 1 Lakh + All the salary drawn. If anyone leaves thereafter, but within the bonded period he has to pay 1 lakh + 3 months notice period. [ Notice period is Basic pay + DA]

6.       If the company terminates one then also he has to pay Rs. 1 lakh. [This clause is generally not followed in actual.]

The incumbents are forced to sign such bonds during their entry. Undoubtedly such bonds are one sided. This defies the basic principles of the Contract Act, principles of natural justice and principles of equal opportunity. The parties here don’t have the same bargaining power. The joinee never knows much about the service rules of the organization.  

In my case, taking care of my family needs, I joined this state PSU. But once I joined I found that it’s not my cup of tea. The future of this PSU is at stake, it’s full of corruption and the career growth is not so good. In the meantime I cracked other central PSUs which are far better. But I was not given NOC and not allowed to leave.  Now if I wait for completion of the contract period my age for applying in other Govt. organizations will be over. I am stuck. I can’t understand when they are saying at one place, that if I leave I have to pay the bonded amount. Again in other place they are saying that I will not get NOC [which means that they will not allow me to leave]. How can both these two clauses apply side by side? This is nothing but chocking the throats of the budding generation.


When I ask about the foulness of these agreements to the higher authorities they just smile off. Some of them who are well experienced in Service laws and who are quite liberal say that these are bogus agreements and are challengeable in the court of law. People who frame such rules never take care of laws. They very well know that no individual will go to the court for this. Now if any goes then also nothing will happen to those who framed such agreements. Because the PSU has their own lawyers. If the org. happens to lose the case in the court of law nothing will happen to them. The loss will be for the org and they will never be blamed. So they get a free hand to frame any bogus rules to suffocate the careers of the budding employees. Please advice what I can do to these people who, at their sweet will, do anything they like.



Asstt. Manager (P&A)




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