‘Indentured slave?’ Indian company demands ₹10 lakh bond for job offering ₹4 lakh salary

In a shocking revelation on social media, a man recently exposed what many are calling an “exploitative” employment bond by a company in India that recruited him via LinkedIn. The post, shared on Reddit, has sparked widespread outrage and debate over labor practices and employee rights in India.

According to the post, the company offered the man a salary package of ₹4 lakh per annum (LPA) but required him to sign a bond stating that if he left the organization within three years, he would be liable to pay a staggering ₹10 lakh as compensation. The bond also included a three-year non-compete clause. While the company promised verbally that personal or family reasons would allow for exceptions, the Redditor pointed out that these provisions were not included in the written agreement.

The bond terms, as highlighted in the post, are:

• Resignation before three years → pay ₹10 lakh.
  
  
• Termination for misconduct → pay ₹10 lakh.
  
  
• Termination by the company without misconduct → three months’ notice or salary, no penalty.
  
  

The Reddit user expressed frustration, noting that there were no significant training costs involved, which are often cited by companies to justify such high bond amounts. “I have no problem committing to the company, but ₹10 lakhs feels like a very large and one-sided amount compared to my package,” he wrote.

The post quickly drew attention from other users. One warned that the bond’s amount equaled the employee’s net salary for three years and advised consulting a lawyer, as legally, companies can typically claim only actual expenses, such as training costs. Another described the terms as “screaming red flags,” calling the arrangement akin to being an “indentured slave.” A third user noted that while some companies do pursue such claims in court, most employees avoid the hassle, underscoring the legal ambiguity and potential stress involved.

Employment experts say that while companies in India can enforce bonds to recover legitimate training costs, clauses demanding exorbitant sums without justification are often challenged in court. The incident has reignited discussions about employee rights, fair labor practices, and the ethical responsibilities of recruiters in the digital age.

With job seekers increasingly relying on platforms like LinkedIn, this case serves as a cautionary tale for both employees and companies navigating employment agreements in India.