Service bond

If the employee has to receive more than Rs.1 lakhs terminal benefits he must be worried.  If the loss is not substantial  (Terminal benefits to be received from the employer is only PF self contribution) you can ignore and no bank to my knowledge proceeded for such recovery.  If the terminal benefits are substantial then you have to issue a legal notice and fight it out through court.  Everything depends on facts and your personal reasons.  In several cases, the employees take PSU jobs, and after gaining experience shift to private sector banks for better emoluments and some private banks are even paying such amounts to PSU directly as emoluments in private banks are like packages linked to performance every year

You are bound by the terms and conditions agreed, if not waived.

To my knowledge, such bonds are not enforceable only if -

(1) The employment agreement or bond, per se, must have been entered into by the parties with free consent, the conditions stipulated must be reasonable and the conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer.
(2) The employment bond will not be enforceable if it is either one sided, unconscionable or unreasonable.
(3) The amount of damages claimed from the employee for breach of the post training clause must be proportionate to the amount of money invested by the employer in training the employee concerned. More pertinently such bonds are applicable only if the employer has spent money on the personal grooming and enhancement of the employees but not just a training that helps employees perform better.
(4) Courts have generally held that employees' rights to livelihood must prevail over employers' interests notwithstanding a pre-existing agreement between the two. Therefore, any coercive act like retaining the original educational certificates should be avoided by the employers incase of bond breach by the employees.
(5) Non-Compete clause post termination of employment must be reasonable in terms of period of restrictive time and geography.

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