Скачать или смотреть Can you break employer bond? Employment bonds legal validity in india

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In Vijaya Bank & Anr. v. Prashant B. Narnaware case (Supreme Court, 2025), employee was asked to pay 2 lakh if he leaves before 3 years

1/ Do employee bonds restrict fundamental right to lawful profession, trade, or business?

Only bonds that restrict your future employment post resignation e.g. non-compete clause are void. Bonds that merely ensure a minimum service period are not

Businesses need to retain their experienced employees to remain competitive and thus, minimum service tenure is reasonable

2/ Are liquidating damages valid?

Early resignations and resulting untimely recruitment drives lead to huge financial burden and impact day-to-day operations.

Hence, damages based on genuine estimate of losses incurred by employer are valid

Employment bonds are enforceable, but if employee faces harassment or bad working conditions, they can approach courts under different laws.

(Disclaimer: Seek proper legal advice on case to case basis)

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