In this video of LawWiser, we break down a recent Supreme Court judgment that settles a crucial question in Indian employment law: Are employment bond clauses legally enforceable?
The Court ruled on a case involving a public sector bank where employees were required to serve a minimum period or pay a ₹2 lakh compensation for early resignation.
One employee challenged the clause—but what did the Court decide?
Does this violate Section 27 of the Indian Contract Act (restraint of trade)?
Is it against public policy or Articles 14 and 19 of the Constitution?
How does this affect employers and employees going forward?
Tune in as we decode the Supreme Court’s stance on employment bonds, service agreements, and how they impact hiring, training, and retention practices-especially in the public vs private sector context.
Key takeaways for legal professionals, HR managers, and employees.
Insights from landmark cases like Niranjan Golikari and Superintendence Co.