What are the consequences of breaking an employment bond of 2 years before the expiration?



While accepting the employment offer from your present employer, you have signed an employment bond and also accepted all the terms & conditions on free consent. You shall have to comply with all the terms & conditions of the agreement you have signed.

If you wish to resign now, you shall have to give notice and also pay the bond amount mentioned u/s 74 of the Indian Contract Act, 1872, which says, “When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for.”

The company can sue you and claim the bond amount and salary in lieu of the notice period as per law, Whether the company will treat it worth to sue you in case of your leaving them without paying the bond amount is upto their discretion.

Reference: Section 74 of the Indian Contract Act, 1872



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