Legal Question in Employment Law in India

Dear Sir,

I have been working with a PSU as Administrative Officer since June 2014. There is a 4-year bond. Recently i got selected in SSC-CGL 2013. I wish to resign now. As per bond, it is written as follows:

"3) WHEREAS said (Name of the candidate) agrees that in the event of his/her

resigning from the services of the Company before the expiry of the Bond period, he/she

will be liable to pay liquidated damages equivalent to one year�s gross salary paid to

him/her during the year of probation which could be proportionately reduced depending

on the length of service rendered. However, in the event of probationer resigning from the

Company during the probationary period, he/she shall be liable to pay the salary received

by him/her during entire service in the Company in addition to an amount of Rs. 25,000/-

(Rupees Twenty five thousand) towards partial cost of training."

I am still under probationary period. So, they are demanding 37,000/- X 12 (months) = Rs. 4,44,000/- as bond amount.

I feel this as unethical. After working one full year, demanding full gross salary to give them back is disgusting. Many a time i heard of bonds (in pvt companies like TCS,Infosys etc) recovering only expenses incurred during training. So, please clarify:

1. Is service bond valid in India as per constitution?

2. Is it constitutional to demand entire salary earned to return?

3. If it is against constitution, to whom i can complain? (like grievance cell/court/labour dept/ human rights).

Thanks in advance.

1 Answer from Attorneys

Related Questions & Answers

More Labor and Employment Law questions and answers in India

Looking for something else?