What legal action can the employer take against me if I break the employment bond by leaving early?


Since you have signed the bond and have consented to agree by the terms of the bond, hence you shall be bound by it. The only possible way to get rid of this bond is by paying the compensation amount or by completing your term.

The most important case that went to the court concerning this situation was the case between Sicpa India Limited and Shri Manas Pratim Deb. Where the company stated that employee Manas had to work with them for a duration of 36 months. Leaving the contract in between will lead to a penalty amount of Rs. 200,000 payable to the company.

In this case, the court asked the employer to reveal the actual expense spent on the employee for his training which was Rs. 67,595. The court was in favour of the employee and considering the situation that the employee has served the company for a period of 2 years declared the amount payable to the company as Rs. 22,532 only.

The case makes it clear that no matter what amount is there in the employment bond, the employer will utterly pay what is reasonable considering the circumstances. Or only the amount that might affect as a loss to the company shall be paid by an employee.

These are some of the legal clauses that may help:

– In India Bond is illegal with respect to employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.

– Article 19 of the Indian Constitution which deals with the fundamental rights saying that a worker can serve freely in any organization irrespective of a bond or a contract.

– Section 368 of Indian Penal Code states that any kind of extortion or harm to an employee by confiscating documents by the employer will sentence the company directors for 2+ years of jail.

– According to the Indian Contract Act, any one-sided bond is considered null & void.

Reference: Sicpa India Limited v. Shri Manas Pratim Deb, Section 368 of Indian Penal Code, The Indian Contract Act and Article 19 of the Indian Constitution.



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