Is Job Contract Or Bond Illegal?

I want to know the legal status of Job contract and Job bond. I am working in a company where all employees are working under a Job contract where we have to submit our original academic certificates as security for two years. If anyone wants to resign then that employee has to give 2 months salary then only company will relieve and give the original certificates back. More over in the contract its written that its up to the management to relieve or not during the contract period. I want to know the above mention Job contract is legal or not in India. Somebody told me that bonds are against labour laws hence that it is illegal. Kindly let me know about this. Thanks in advance.
Posted 2 years ago  | 

1 Answer(s)

Ravindra Purohit
Job contracts are valid in India. However, it depends on what terms have been incorporated. If the terms of the bond is balancing meaning thereby it protects the interest of both employer and employee, it is valid. An unreasonable condition in the bond makes that condition illegal.

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