What is Employment Bond?

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An employment bond, or service bond, is a clause or separate agreement under which an employee promises to stay for a minimum period or repay a stated sum, often tied to training or joining costs. Enforceability depends on the Indian Contract Act and the facts, and courts generally allow only reasonable compensation.

Example

A company offers training and asks a fresher to sign a two-year bond with a repayment clause. Read the amount, what it covers and whether it reduces after each year. Recoveries from final pay must also fit the Code on Wages' list of authorised deductions.

See HR interview questions for freshers and notice period.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.