• Service bond

Sir  I am working for Indian Oil corporation .I  have signed a service bond with  the employer for 3 three years for 3 Lakhs INR.I have been working for the company for 5 months and iam planning to resign.Whether I have to pay the full amount as per the bond or  I can resign without paying the bond?
Asked 7 years ago in Labour

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8 Answers

1. The service Bind is made willingly is binding upon both the aprties.

2. So if the employee leaves willingly beofre the bind period he is bound to make the payment as mentioned in the Bond.

3. However if the employee is forced to leave the job before the 3 years then he can avoid making such payments.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

Hi

In the event of you being in probation and your services have not been confirmed as of date of your resignation letter, you can choose to submit a resignation letter and ask for relieving of your services.

Service bond signed with the employer will only come in to force only after confirmation of services and not otherwise.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

You cannot resign without paying the bond

2) the company has spent money on your training hence you have to serve the bond period

3) if you fail to pay company would sue you to recover the bond amount

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1) company spends money on your training . hence it requires employees to sign the bond

2) bond is not in restraint of trade

3) if you have signed the bond you are bound to pay the company as you have not served for period of 36 months

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

Yes if the nature of your work was sharing the secret information of the company.

Such section does not stand in the way if a restraint is required for sometime to trade secrets can be protected.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

The bond is a contract, whereunder contractual obligations are to be mutually honoured. If you resign in violation of the contract then you can be sued in the civil court for liquidated damages.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Any type of Employment Bonds are nothing but a private agreement between two parties which are governed by Indian Contract Act. There is nothing called Employment Bond Act etc.

Such bonds are applicable only if the company has spent money on the personal grooving and enhancement of the employees, but not just a training that helps employees perform better.

As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void.

Most of the Employment Bonds are one sided.

In India Bond is illegal in relation to employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.

The Hon. Supreme Court of India and several High Courts have clearly stated in a number of cases that no employee can be forcefully employed against his will, just because he has signed a contract with the employer and that the employer can not hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.

Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.

A bond merely as employee retention tool is bad in law

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

as per the section 27 in the indian contract act whether the bond is legally valid?or otherwise is it sufficient to pay what hey have spent for me during the training?.

Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices.

As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.

Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit and minimum punishment under this act is two years.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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