Pune | 02 Feb, 2017 (6 years, 1 month ago)

Employment and Labour Laws

Is contract/bond enforceable in Indian?

I have signed a contract at the time of joining an IT company. Contract states that if I leave the company before 2 years I will have to pay 1,00,000 rs. After 1 year of work, due to medical issues I had to leave the job and I was not able to serve notice period. So now company have terminated me and sent a legal notice stating that I have to pay 1,00,000 rs for bond break and training provided and 20,000 rs for not serving notice period. But company have not provided any special training, just basic programming language training for whole batch was provided. Please suggest what should I do.
12 Feb, 2020 | 22:53

Reply legal notice and attach your medicals. illness is a valid defence for not performing your part of contract.

24 Apr, 2017 | 19:29

The legal issue surrounding an employment bond depends heavily on the terms and their intent. The generally accepted position is that if the Company has incurred costs on training you, and the same is recoverable upon your leaving within a particular period, the Company may be entitled to pro rata reasonable costs. However, this is not set in stone and the position depends extensively on the facts. The most important document would be the employment agreement and the terms of the bond executed by you.

06 Feb, 2017 | 15:19

Hi. Per se the employment bond is legal in India. The requirement is that it should not be violative of Section 27 of Indian Contract Act. Further, the bond should be reasonable, clear and unambiguous. I would suggest that you do not send any reply to the legal notice as of now. In case the company proceeds to take any action, the same can be challenged in the court that the bond was unreasonable and contained unfair terms.


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