• Is it legal to have bond with a company for H1B application?

Hi,

This question is on behalf of my husband, my husband works in company A. There is another company B which has filed H1B petition last year for him after getting BOND signed which states if his application is picked up in lottery then either he has to travel US and serve their client for atleast an year or he needs to pay 3 Lac Rs. which is H1b application processing fee.

Now due to some personal reason, my husband decided not travel to US and he informed to the company B. We started getting calls from the company B for paying 3Lacs else they will file a lawsuit.

Is it legal in India to have such BONDs? In case of either answers what action needs to taken next?
Asked 8 years ago in Labour

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5 Answers

Hello,

I suppose your husband also posted the same query, though such agreements are not valid in the eyes of law but since your husband has admitted the liability therefore he will have to pay the same to the company (this suggestion will stand if your husband has paid something). However, if your husband has not paid something then your company is at liberty to file a lawsuit, however it can be defended well on part of your husband.

the relevant law has been laid down in VFS Global Services Pvt Ltd v. Mr. Suprit Roy, 2008 2 Bom Cr 446

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1. It is not clear whether he joined company A informing the B company.

2. If not then B can legally calimthe said amount/

3. Your husband can not certainly joins another company keeping his previous employer dark and the previous company proceeds for visa application nand now your husband refuses to join work. it is not done.

4.however after seeing his job contract with A company I amy advise further.

Devajyoti Barman
Advocate, Kolkata
23659 Answers
538 Consultations

HI

1) It is not legal in India to have employment bonds and also section 32 of Indian contract act .

2) Also in accordance to US Contract act, a bond obtained in lieu of providing H1B visa by an US Employer is classified as substantive unconscionability (chapter 14, sub chapter III) and hence the bond is void.

3) In general , laws in both USA and India treat H1B as an employment visa and that too on lottery and hence there can be no Bond on a future uncertain event

4) So, your husband is right in writing to the prospective employer of his intention not to join the firm subsequent to signing of the Bond.

5) Also B has no right to file a suit and at the most, they can only make empty threats.

6) In the event of continuous harassment company B, you should complain to US immigration authorities and respective state labour department(based on which state B is having their office) through mail which will throw B out of business in USA for at least 3 years.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2174 Answers
394 Consultations

The company has spent Rs 3 lakhs on employee H1b application processing fee

2) your husband has signed bond wherein he agreed to reimburse application processing fee in case he does not travel to USA

3) your husband should travel to USA for work purposes or agree to pay the bond money

Ajay Sethi
Advocate, Mumbai
99994 Answers
8163 Consultations

You have not stated that if the H1B visa has been processed by the company?

What about his present employment, whether he resigned it before accepting the B company's offer?

The bond will depend on whether if the company B has already processed the visa at its cost or not.

The company B can legally enforce the same if your husband has signed the bond provided the company has borne the expenses for this purpose at least proportionately.

T Kalaiselvan
Advocate, Vellore
90196 Answers
2506 Consultations

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