• How Legal is my bond

I have signed a bond with my company for 18 months the amount of bond is Rs 4 Lakhs, I have completed the 11 months of it and have a better offer and want to leave my current job. The bond does not have any registrations and also not notarised. And there is no witness signature.

Can some one help me to understand if this bond is valid?
Asked 1 year ago in Labour from Chennai, Tamil Nadu
1) it is necessary to peruse bond signed by you to advice . 

2) bond need not be regsitered to be valid 

3) it is sufficent if you have signed the bond that you would work for company for 18 months 

4) not necessary to have witness signature 
Ajay Sethi
Advocate, Mumbai
46904 Answers
2773 Consultations

5.0 on 5.0

Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation. In the event of a breach of contract by the employee, the employer shall be entitled to recover damages only if a considerable amount of expenditure was borne by the employer. As per the bonded labour act no employer can restrict the freedom of work in any condition but service contract for a specific period is not a bonded labour condition as the employee enters into contract with the employer at free will. 

Following are the requirements of a valid employment bond agreement.
1.	The agreement must be signed by the parties with free consent.
2.	The conditions stipulated must be reasonable and:
3.	The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer.
4.	The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable.

It is not necessary to have a witness in bond.The validity of Employment bonds can be challenged on the basis of Section27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.
Ajay N S
Advocate, Ernakulam
2830 Answers
47 Consultations

5.0 on 5.0

1. If there is a lock in period laid down in the bond it has to be honoured. You can be sued for damages on account of breach of contract if you dishonour it. 

2. The bond is not required to be either notarized or registered. If you have signed it then it is a binding contract.
Ashish Davessar
Advocate, Jaipur
23180 Answers
641 Consultations

5.0 on 5.0

The contents of the Bond is to be looked into.
If there is an escape route then you can surely quit the company.
However Bind does not mean slavery as in certain circumstances the employee can leave the company.
So leave the same and wait for the action if the company can take.
Devajyoti Barman
Advocate, Kolkata
13191 Answers
175 Consultations

5.0 on 5.0

1. It will hardly take any time by your Employer to get the said Bond notarised putting back date.

2. There is hardly any instance where an employee has been forced to pay the Bond amount for pre-matured resignation.

3. However, the  main problem is that the employer will not issue you the experience  certificate and/or the release letter which will be required by you for joining a new Company.

4. If you are sure that you shall be able to join the new company without presenting the experience certificate or the release letter, then you can afford to quit violating the Bond.
Krishna Kishore Ganguly
Advocate, Kolkata
18818 Answers
454 Consultations

5.0 on 5.0

The unregistered agreement or employment contract conditions are also valid but it cannot be unilateral.
The company will arrange for witness from their side when it is being presented before court.
You cannot violate the conditions of employment at your whim, but extremely special circumstances may be a justification. 
The employer can initiate recovery suit if you breach the contract conditions.  
T Kalaiselvan
Advocate, Vellore
37100 Answers
403 Consultations

5.0 on 5.0

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