Enforceability Of Employment Bonds In India

Over the last decade, change in business environment due to globalization has resulted in greater business competition. To survive this competition, organizations have been competing for skilled employees to ensure better products and services. The increase in demand for skilled workers together with their limited availability has created a war of talent amongst these organizations.

To cope up with this competition, organizations often invest huge amount of time and money on imparting training and skills to their employees. Unfortunately, several of them after acquiring these valuable skills, move out of the organization for better prospects thereby causing huge loss to the employer, which , from the perspective of an employer, cannot be compensated merely by money. The employer in order to safeguard its interest often makes its employee sign an employment bond. These bonds are contracts / undertakings given by the employee wherein employee agrees to serve the