E008💼 Employment & JobReply draft
Employer enforcing illegal service bond
What you need to know
Indian Contract Act Section 27 makes any clause restraining a person from their profession or joining another employer after leaving void and unenforceable. Unreasonable bond amounts are also challengeable.
Your rights
1
Challenge post-employment non-compete clause as void
2
Leave job without paying unreasonable bond amount
3
Approach Labour Court for relief
4
Damages if coerced or salary withheld under bond
What you should do now
Action first1
Do not pay and send one clear reply
- Post-employment bond restraints are void under Indian Contract Act Section 27
- Send written reply using the draft in this app stating the bond is unenforceable
- Simply join your new employer — courts will not stop you
- If employer withholds F&F dues over bond — file with Labour Commissioner to recover dues
Acts applicable
Indian Contract Act 1872
centralSection 27 — Agreement in restraint of trade is void
Where to complain
Consumer complaint portal: e-jagriti.gov.in (replaced edaakhil.nic.in as of Jan 2025). Labour complaints: col.gujarat.gov.in. All links verified June 2026 via web search against official government sources.