FLAT 20% OFF and 3-Months ADDED Validity on All Courses Absolutely FREE! Enroll Now Use Code: INDIA20
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Responsible Citizen (Personal)     21 October 2010

Service Agreement and PF

Hi My Learned Friends,


I have recently joined a company and got to know two very unsual things

1) There is no Employer Contibution for the PF and it is just Employee Contribution.

2) They are asking me to Sign a Bond of 1,00,000 (One Lakh Rupees) and an agreement that if i do not serve for atleast a year , I have to pay this amount ...


I just want to know is the above mentioned things are legal in the labour law of India ,if not then what is the way I have to get my rights..


Thanks for your advice.



 3 Replies

Umashankar Singh (Director)     21 October 2010

there are no such rules for bond , it depens on mutual understandig

Pushpa Rawat (n/a)     22 October 2010


As far as PF is concerned: If the employer has a PF registration number, he has to contribute his share in the employees a/c provided the employees basic is less than 6500.

And about the service agreemnt: It is not a law but if the organization is spending funds on you getting trained, then you will be laible to pay the amount to the organization that has spent funds on your traing before you move out of the current organization.

Revert if any query.




Pratheep Kumar (Asst. Manager - HR)     23 October 2010


As per EPF act employer should also contribute the provident fund / pension fund.  There is no exemption to skip the employer contribution. 


If the employer is spending money for your training they have a right to claim the bond amount.  Otherwise there is no clause to claim the bond amount.




Pratheep Kumar. R

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Start a New Discussion Unreplied Threads

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query