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sam (na)     20 August 2011

Bond with employer


I have couple of questions and Concerns about Bond with an employer.
I have signed a 2 years bond with my current employer and now I am getting better option from another company and want to join them.but as per bond if I breach is I will have to pay 1 Lakh for that.

(1) How can I get rid off this bond ?
(2) Can it be negotiated and how ?

Please advise me some solutions sothat I can negotiate or they can wave it off.I am breaching this bond after 1 year.


 8 Replies

Sanjeev Kuchhal (Publishers)     20 August 2011

It depends on conditions on which you have signed the Bond. 


Under Section 27 of the Indian Contract Act, every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind is to that extent void. 

Whether or not the contract is in restraint of trade would depend upon whether the contract was unreasonable, unfair or unconscionable. A contract imposing a general restraint would, in all probability, be void. In order for the negative covenant to be valid, even the partial restraint would have to be reasonable in the interest of the parties and of the public.

akash kapoor (*************)     20 August 2011

see, in this case it has to be seen that whether the conditions of the agreement were too rigrous or that 1 lakh rs is just the measure of damage one would sutain if an employee leaves him. As correctly pointed above about section 27, but that is also subject to certain exceptions. It was correctly pointed n Niranjan Shankar v Century spinning ltd.

sam (na)     20 August 2011

This bond is for the Training but I was not given any special traning.So my emplyer has not spent even 1 rupee on me for traning.I joined the company and my colleague told me about the work and I sarted working.thats it, company has not invested in me for any traning

If my employer has not given me any training , can they still take money ?.

Does indian law talk about bonded labour  ?

Kumar Doab (FIN)     20 August 2011

If the bond is for training cost only and as posted by you that company has not instituted any training for you and hence can not establish training expenses, it shall not be easy for the company to prove in a court of law.

It shall be appropriate if you can post the copy of bond. You may remove the names etc.

Or you may consult an experienced and competent lawyer, with copies of all records and seek advice.

sam (na)     21 August 2011

please help me with the lawyer's contact no#

Kumar Doab (FIN)     21 August 2011

Learned Mr. Kuchhal and Mr. Kapoor have given valuable advice. Kindly follow it.

If you wish to contact LCI lawyer, you may visit the experts profile in Experts section and contact them.

If you wish to contact lawyer at your location, you can find out from your resources.

sam (na)     22 August 2011

There is one discrepancy out here.

As per my offer letter and Appointment letter it says "Service Agreement:

"Post your joining, should you accept any specialized training whether in India or abroad, you will be
required to commit to serve (
Company name removed) for a minimum period of 12 months as per the (Company name removed)
policy. You will be required to enter into a Service Agreement, as per (Company name removed)policy on
Training, supported with a Guarantee in the form and manner decided by
(Company name removed). You are under
no obligation to accept any training requiring a commitment to serve
(Company name removed)on your part.
However, once accepted by you, it will be a binding contract

As per the above it clearlys say 12 months of bond but on Actual non-judical stamped paper, They have mentioned 24 months.and I signed both Appointment letter(12 months) and actual bond(24 months).But I was under impresion that bond will be for 1 year as we get offer letter first and accept it and second comes Bond.So they should not have made this mistake in my Offer,Appointment and Bond ?

Can they waive off the bond on this ?

or will I have to pay ? Please reply and help me .....

sam (na)     07 October 2011

Can someone please explain me "what is one sided and two sided bond ? and the Differece b/w them ??

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