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Anonymous
Can a company's management prevent an employee from leaving after signing a one-year bond? How legally binding is the bond? If an employee is unwilling to continue, what are the potential consequences? Please provide your suggestions.
From India, Hyderabad
Dinesh Divekar
7884

Dear Asha-Posupo,

Please provide us with more information about your query. When did the employee join, what was the duration of the lock-in period of the employment, was the agreement made on non-judicial stamp paper, etc? Why does the employee wish to leave? What efforts the employer has made to dissuade the employee from breaching the agreement? What will be the impact on the organisation if the employee quits the employment before the completion of the lock-in period?

Thanks,

Dinesh Divekar

From India, Bangalore
saswatabanerjee
2393

Hi Asha

You need to provide more information before we can give a proper answer.
However, a bond is valid in India only in certain circumstances. It is mostly valid where you have provided some specialised training to the employee and the bond is intended to cover that expenses. Mostly courts have discarded bonds where the training was not a formal classroom training given by external trainers, but again it depends on circumstances.

In any case, you can not prevent him from leaving or force him to work where he does not wish to. At best you can ask him to pay the amount of the bond and can file a civil suit for the same.

From India, Mumbai
JAGADEESHWARA
2

Once mutually agreed and signed the Bond. Both employer and employee need to fulfill the terms and conditions of the Bond. Just leaving in the middle may cost the employee career too. Even in the court of law, it is valid if it is duly registered.
From India, Bengaluru
saswatabanerjee
2393

@Jagdeeshwara,
Bonds and agreements in restraint of trade and profession are not considered valid in India.
Therefore bonds are valid only in certain circumstances.
The bonds are valid as a means of recover of cost incurred for training, neither the bond nor agreement can force a person to work in a job he does not want to work

From India, Mumbai
Anonymous
Thank you all for your valuable suggestions. Really appreciate it.
From India, Hyderabad
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