One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X was struggling with unemployment when he received a lucrative job offer from XYZ Pvt Ltd in City A. The company offered him a remote position in data and AI field with a salary package of 4.2 lakhs per annum. However, there was a catch – he had to sign a 2-year employment bond consisting of 6 months training period followed by 18 months service agreement. Being an average student, Mr.X was surprised when he cleared all interview rounds and got selected. After 5 months into the job, he started experiencing severe depression and anxiety, possibly due to work pressure and the restrictive nature of the employment bond. He began questioning whether he made the right decision and was seeking legal advice on how to handle this situation without facing severe financial penalties or legal consequences from the company.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

• Review your employment contract thoroughly to understand bond clauses and penalty terms
• Document all instances of work-related stress, unreasonable demands, or contract violations by the employer
• Seek medical consultation for depression and anxiety to establish health-related grounds for contract termination
• Negotiate with HR department before taking any drastic step, as companies often prefer amicable settlements

Applicable Sections of Law

Employment bond disputes primarily fall under contract law and labor regulations. Under the Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and wrongful restraint in employment contracts. Section 351 of BNS addresses criminal intimidation, which may apply if employers threaten employees with exorbitant penalties. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 173 provides procedures for filing complaints against fraudulent employment practices. Additionally, the Contract Act provisions regarding restraint of trade and unconscionable agreements remain applicable. Employment bonds that create unreasonable restraint on an individual’s right to livelihood may be challenged as void and unenforceable.

If You Are the Complainant

• File a complaint with the labor commissioner office in your jurisdiction citing unfair employment practices
• Gather evidence of the company’s violation of labor laws or unreasonable bond conditions
• Document any instances where the company failed to provide promised training or work conditions
• Approach consumer forums if the employment was obtained through fraudulent promises or misrepresentation
• File a police complaint under BNS sections if there are elements of cheating or criminal intimidation

If You Are the Victim

• Immediately consult a labor law specialist to understand your rights and options for exit
• Obtain medical certificates documenting work-related stress, anxiety, or depression from qualified doctors
• Keep detailed records of all communications with the employer regarding bond terms and work conditions
• Research similar cases and precedents where employment bonds were declared void or unenforceable
• Consider approaching labor courts for relief if the bond amount is unreasonably high or creates financial hardship

How the Police Behave in Such Cases

Police typically treat employment bond disputes as civil matters rather than criminal cases unless there are clear elements of fraud or cheating. They may be reluctant to register FIRs in such cases and often advise parties to resolve the matter through civil courts or labor tribunals. However, if there is evidence of criminal intimidation or fraudulent hiring practices, police will investigate under relevant BNS sections. Documentation and evidence play a crucial role in convincing police to take action.

FAQs People Normally Have

Can employment bonds be legally challenged? Yes, bonds that create unreasonable restraint of trade or impose excessive penalties can be challenged in courts.

What if I cannot pay the bond amount? Courts often consider the financial capacity of employees and may reduce or waive penalties in cases of genuine hardship.

Is it criminal to break an employment bond? Breaking a bond is typically a civil matter unless there are elements of fraud or cheating involved.

Can companies force employees to continue working? No, companies cannot force anyone to work against their will, but they may claim compensation for training costs incurred.

What Evidence Is Required?

• Original employment contract and bond agreement with all terms and conditions
• Email communications between employee and HR department regarding bond terms
• Medical certificates documenting work-related stress, anxiety, or depression
• Proof of training provided versus training promised in the agreement
• Evidence of company’s violation of labor laws or unreasonable working conditions
• Salary slips and financial documents showing inability to pay bond amount
• Witness statements from colleagues regarding work conditions or company practices

How Long Will the Investigation Take?

Employment bond dispute cases typically take 6 months to 2 years for resolution, depending on the complexity and court involved. Labor tribunal cases may be resolved faster than civil court proceedings. If criminal elements are involved, police investigation may take 3-6 months. Settlement negotiations with employers often yield quicker results, sometimes within 2-3 months.

Advocate Sudhir Rao, Supreme Court of India