Can you be bound by an Employment Bond to pay penalty upon resignation or to not take employment elsewhere?

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Resignation Penalty

Several candidates struggle with this concern. They worry about the repercussions of resignation from their current job. They worry about penalty upon resignation and fines being levied on them under the employment bond that they have signed. Also, they worry about the repercussions of taking a job elsewhere immediately after resigning from their current job.

However, In India as far as employment bonds penalty upon resignation care concerned, the Indian Judiciary preserves the employee’s interest over that of the employer. 

First:

In case of termination of the bond, the employer can claim only the costs incurred during the training period of the employee.

Second:

Under the provisions of the Indian Constitution, the right of livelihood of an employee comes first even against any existing agreement with the employer. This means that after termination, you can join another company.

Third:

Under Section 27 of The Indian Contract Act, an employer cannot restrict the employee from working for a competitor. However, it is essential to safeguard trade secrets and confidentiality of the previous company under all circumstances failing which there can be legal consequences.

A Note Paying Agent may resign by notifying the Indenture Trustee, the Administrator and the Issuer. The Indenture Trustee may terminate the agency of a Paying penalty upon resignation Agent by notifying the Note Paying Agent, the Administrator.

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