I signed a 4-year work agreement with a company in India. It’s been almost 2 years, and I’m looking to join another company. My bond has a 7.5 lakh rupee penalty. Can the company withhold my PF and gratuity if I leave?

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Apni Law
Law Forum › Category: Labour & Service › I signed a 4-year work agreement with a company in India. It’s been almost 2 years, and I’m looking to join another company. My bond has a 7.5 lakh rupee penalty. Can the company withhold my PF and gratuity if I leave?
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Apni Law Staff asked 10 months ago

I signed a 4-year work agreement with a company in India. It’s been almost 2 years, and I’m looking to join another company. My bond has a 7.5 lakh rupee penalty. Can the company withhold my PF and gratuity if I leave?

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Best Answer

Apni Law Staff answered 10 months ago

Under Indian law, companies cannot withhold your PF and gratuity for breaching a bond. However, they can legally pursue you for the penalty stipulated in the bond agreement, subject to the validity and enforceability of the bond clause.

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