{"id":33512,"date":"2025-05-26T10:13:34","date_gmt":"2025-05-26T04:43:34","guid":{"rendered":"https:\/\/ascent-hr.com\/?p=33512"},"modified":"2025-06-03T10:27:19","modified_gmt":"2025-06-03T04:57:19","slug":"mix-views-on-misuse-of-service-bonds-as-sc-reiterates-validity","status":"publish","type":"post","link":"https:\/\/ascent-hr.com\/en-ph\/resources\/in-the-press\/mix-views-on-misuse-of-service-bonds-as-sc-reiterates-validity\/","title":{"rendered":"Mix views on misuse of service bonds as SC reiterates validity"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"33512\" class=\"elementor elementor-33512\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-514b40fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"514b40fd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div 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vc_custom_heading no_stripe consulting_heading_font  text_align_left\" ><h1 style=\"text-align: left;line-height: 50px;font-weight:700\" class=\"consulting-custom-title\">Mix views on misuse of service bonds as SC reiterates validity<\/h1><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9d54bbc elementor-widget elementor-widget-stm_post_details\" data-id=\"9d54bbc\" data-element_type=\"widget\" data-e-type=\"widget\" id=\"press\" data-widget_type=\"stm_post_details.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"post_details_wr  consulting_elementor_post_details\">\n    \n<div class=\"stm_post_info\">\n\t<div class=\"stm_post_details clearfix\">\n\t\t<ul class=\"clearfix\">\n\t\t\t<li class=\"post_date\">\n\t\t\t\t<i class=\"fa fa fa-clock-o\"><\/i>\n\t\t\t\tMay 26, 2025\t\t\t<\/li>\n\t\t\t<li class=\"post_by\">Posted by:\t\t\t\t<span>AscentHR<\/span>\n\t\t\t<\/li>\n\t\t\t<li class=\"post_cat\">Categories:\t\t\t\t<span>In the Press, Industry Story<\/span>\n\t\t\t<\/li>\n\t\t<\/ul>\n\t\t<div class=\"comments_num\">\n\t\t\t<a href=\"https:\/\/ascent-hr.com\/en-ph\/resources\/in-the-press\/mix-views-on-misuse-of-service-bonds-as-sc-reiterates-validity\/#respond\"><i class=\"fa fa-comment-o\"><\/i>No Comments <\/a>\n\t\t<\/div>\n\t<\/div>\n\t\t\t<div class=\"post_thumbnail\">\n\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"988\" height=\"550\" src=\"https:\/\/ascent-hr.com\/wp-content\/uploads\/2023\/10\/Deccan_herald_in_the_press-988x550.webp\" class=\"attachment-consulting-image-1110x550-croped size-consulting-image-1110x550-croped wp-post-image\" alt=\"Press thumbnail with Deccan Herald Logo\" srcset=\"https:\/\/ascent-hr.com\/wp-content\/uploads\/2023\/10\/Deccan_herald_in_the_press-988x550.webp 988w, https:\/\/ascent-hr.com\/wp-content\/uploads\/2023\/10\/Deccan_herald_in_the_press-350x195.webp 350w\" sizes=\"auto, (max-width: 988px) 100vw, 988px\" \/>\t\t<\/div>\n\t<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-cb6113e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cb6113e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-a363c59\" data-id=\"a363c59\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a2925f8 elementor-widget elementor-widget-heading\" data-id=\"a2925f8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Published in<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-de43b20 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"de43b20\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-0b78a4a\" data-id=\"0b78a4a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8f5f335 elementor-widget elementor-widget-image\" data-id=\"8f5f335\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.deccanherald.com\/business\/mix-views-on-misuse-of-service-bonds-as-sc-reiterates-validity-3556788\" target=\"_blank\" title=\"link to Deccan Herald website article\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"220\" height=\"60\" src=\"https:\/\/ascent-hr.com\/wp-content\/uploads\/2023\/10\/Deccan-Herald-logo.webp\" class=\"attachment-medium size-medium wp-image-22387\" alt=\"Deccan Herald logo\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f64ea27\" data-id=\"f64ea27\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-e25e4b9 elementor-widget elementor-widget-text-editor\" data-id=\"e25e4b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Experts say that the situation is likely to evolve over time, as and when cases of exploitation come into the picture as such a law cannot be regulated well, unless both the parties are fair.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-04f8ca9 elementor-widget elementor-widget-text-editor\" data-id=\"04f8ca9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The Supreme Court\u2019s recent judgement of validity of service bonds has sparked conversations around it with experts having a mixed view. While staffing firms and law experts believe that employers are unlikely to misuse and bond they make employees sign, banking unions oppose it due to possible exploitation.<\/p>\n<p>Service bonds are fairly common across both public and private sectors, particularly in banking, healthcare, engineering, and IT industries\u2014where employers incur upfront costs on employee training, onboarding, relocation or sponsor an employee\u2019s education or certification.<\/p>\n<p>The apex court\u2019s judgement roots from a dispute between Vijaya Bank and its former employee Prashant B. Narnaware, who was asked to pay Rs 2 lakh under \u2018liquidated damages\u2019 for quitting his job before the mandatory serving period of 3 years. While the Karnataka High Court had ruled in favour of Narnaware, the Supreme Court reversed it.<\/p>\n<p>\u201cSupreme Court is saying is that if training has been provided to someone to put across a particular position and there&#8217;s a private contract clause which has been entered because let&#8217;s say that person has been put on a project, then there&#8217;s going to be damages experienced by the company and that particular reasonable amount is put as liquidated damages for early resignation which is a fair thing to do as far as a financial consequence for early exit,\u201d said Teamlease Staffing\u2019s Chief Executive Officer Kartik Narayan.<\/p>\n<p>However, analysts suggest that there are grey areas which can be misused by corporations, especially when enforced on junior-level employees who have very limited or no bargaining power. \u201cThis new judgment is slightly different as no training policy has been discussed or described. The reason people are talking about it is because it is slightly overstepping beyond what has been held before,\u201d said Adil Ladha, Partner, Saraf and Partners.<\/p>\n<p>There are two factors at play here. One, that no one can force someone to work for any company. Second, no one can stop someone from working for anybody else, as long as there is no breach of confidentiality. Moreover, the fairness of a service bond depends not just on how much the employee is asked to pay if they leave early, but also on their individual situation.<\/p>\n<p>\u201cWhile the service bond doesn\u2019t stop an employee facing serious issues like harassment, discrimination, or a hostile work environment\u2014from leaving, the real question is whether they\u2019re still expected to pay. As of now, there\u2019s no clear legal principle on this, it will be interesting to see how courts look at such cases,\u201d said Gerald Manoharan, Partner, JSA Advocates and Solicitors.<\/p>\n<p>Experts say that the situation is likely to evolve over time, as and when cases of exploitation come into the picture as such a law cannot be regulated well, unless both the parties are fair.<\/p>\n<blockquote>\n<p>\u201cA supervisory intervention is usually present which employees can make use of, hence, I don\u2019t feel that industry grievances are completely employer favoured,\u201d said <b>Ascent HR Chief Executive Officer Subramanyam S.<\/b><\/p>\n<\/blockquote>\n<p>\u201cIf an employee serves a notice period of the required time, then I don\u2019t think anything should be recovered. Something reasonable is ok, otherwise, the whole thing is about deterring employees from resigning,\u201d said CH Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA).<\/p>\n<p>\u201cPeople should have the freedom to move. If there is a better opportunity, they will go because then there is also an unequal bargaining power that stands between an employer and employee,\u201d he said.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-top-column elementor-element elementor-element-9d56c19 elementor-hidden-tablet elementor-hidden-phone\" data-id=\"9d56c19\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9d5724f elementor-widget elementor-widget-stm_sidebar\" data-id=\"9d5724f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"stm_sidebar.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n<div class=\"stm_sidebar consulting_elementor_sidebar\">\n\n            \t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17483\" class=\"elementor elementor-17483\" data-elementor-post-type=\"stm_vc_sidebar\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-86c5a23 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"86c5a23\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-86c64eb\" data-id=\"86c64eb\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9c694df elementor-widget elementor-widget-heading\" data-id=\"9c694df\" data-element_type=\"widget\" data-e-type=\"widget\" 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reiterates validity May 26, 2025 Posted by: AscentHR Categories: In the Press, Industry Story No Comments Published in Experts say that the situation is likely to evolve over time, as and when cases of exploitation come into the picture as such a law cannot be<\/p>\n","protected":false},"author":2,"featured_media":22388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158,281],"tags":[],"categories_case_studies":[],"class_list":["post-33512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-the-press","category-industry-story"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mix views on misuse of service bonds as SC reiterates validity - AscentHR<\/title>\n<meta name=\"description\" content=\"Explore the mixed opinions on the misuse of service bonds as the 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