Service bond issue

Question

► I have joined Canara Bank which is a public sector bank as a PO in March.. Due to the work pressure I decided to resign form this post... While joining we were signed a bond 5 lakhs and applicable GST if any... And If we don't serve notice period we have to pay that amount too.. I want to know If there is a way to challenge the bond, since the bond amount is too high.. If not, Can I atleast challenge the GST amount

Answer 1

Dear Client,

Indian employment bonds need not necessarily be automatically considered as enforceable. In a public sector bank, it is possible to recover an amount which constitutes a reasonable estimate of actual losses or training cost suffered due to early resignation. If the bond amount of Rs. 5 lakh is too much and is not related to any of the actual losses of the bank, then one may contest this point at the appropriate legal forum. With regard to the GST, it would depend on the type of payment made and the GST law prevailing at the time. If the bank is only making payment for breach of contract, then the imposition of GST may not necessarily be justified based on the facts of the case and GST law.

I hope this helps and if you have any further issues do not hesitate to contact us.

Service bond issue

1 Answer