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Amit Trivedi (Service)     14 June 2020

Is employment bond legal in india

Hi,

My company had deputed me to the UK for onsight assignemnt and got me signed  5 lacs rs. bond if I resign from the company while staying in the UK. Due to some personal reasons, I had to resign and had to move to Europe. Just wanted to know if such type of bond is legal in India.

Also, for 5 lacs rupess bond, company paid 200/- stamp duty. Is it the correct amount for the employment bond.

Please suggest any solution. 

Thanks

 

 



Learning

 3 Replies

P. Venu (Advocate)     14 June 2020

The bond is enforceable if the employer has imparted special training incurring substantial expendiure. It cannot be enforced unilaterally. Stamp duty varies from State to State. 

Dr J C Vashista (Advocate)     15 June 2020

You are liable to honour terms and conditions of bond submitted / committed to your employer at the time of your appointment / assignment.

G.L.N. Prasad (Retired employee.)     15 June 2020

The very act of selecting and deputing an employee to another country, giving him preference is itself a great favour and expensive exercise and the employer may incur a huge loss due to sudden resignation and there may be a lot of delay in finding a substitute in the present circumstances.  The bond is enforceable.   However you can explain the so-called personal problems to your employer, and if those problems are really genuine, they may consider relieving you on humanitarian grounds.  But the employer's experience is that those who were assigned such tasks have taken up independent contracts with such relations developed during past employment, and stolen such contracts and resigned from the parent company and facing such litigation in India.


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