Mayur Mathe 13 October 2022

Seeking help with bond

Hello everyone

My case is that signed a bond with my Indian employer, before coming abroad. The bond suggests that I have to pay 5 lakhs if I leave the company any time while my stay at abroad.

There’s this backend process here with which I have first resigned from the company and joined the same company as a contractor through a consultancy. I’m still associated to it but as an external employee now, not a direct one.

It’d been approx. 5 years and some months that I stayed with them before resigning. In this amount of time, they must have already recovered whatever amount they have spent on my training, Visa, etc. My question is, can this be a good argument for discussion on negotiation or do I still need to pay the full amount?

I’ve already received legal notices (emails as well as paper, on my home address in India).

Reply Follow

7 Replies

P. Venu (Advocate) 27 October 2022

"I have first resigned from the company and joined the same company as a contractor through a consultancy"

Is it as a contractor or contract employee?

Mayur Mathe 27 October 2022

Contractor: it is a term used in IT which means contractor is not a direct employee but is an employee working for a company B while he is on Payroll (direct employee) of company A.

In my case, I left as a direct employee of company A and joined company B as direct employee, and am a contractor of company B.

P. Venu (Advocate) 27 October 2022

The company cannot unilaterally enforce the Bond, They need to approach a civil court. And the employer unlikely to succeed.

For more informed discussion the issue could be posted at https://www.citehr.com/

Mayur Mathe 27 October 2022

Thank you sir. I’ve posted the same on citehr website. If you need anymore details on the bond terms and want to look at the actual bond, I can send you through email.

Dr J C Vashista (Advocate) 28 October 2022

The contract period shall not be counted towards "service" while considering terms and conditions of "service bond". Presumably emails and other correspondence made by the company (employer and not contracting party) at your home/ permanent address contain same subject i.e., regarding applicability and deposit / payment of bond amount in terms of service agreement.