An Indian IT professional who declined a job on the very day of onboarding has created quite the buzz. Why? Because he received a Rs 5 lakh penalty notice from the employer and was accused of breach of contract. The incident has sparked widespread discussion on employment bonds and legal obligations in India’s tech sector.
The techie, who shared the experience anonymously on Reddit, explained that after completing the recruitment and onboarding process, he decided not to proceed with the role due to personal and professional reasons. The company was notified the same day via email, but the matter did not end there as the techie had expected. Despite no salary having been drawn and no company resources having been used the company sent him a mail demanding that he pay up Rs 5 lakh. The notice cited “absconding without serving the notice period” and “breach of contract or bond” as the reason for demanding the money.
Agitated online users questioned the legality and enforceability of such bonds. Several pointed out that unless the company had provided formal training or incurred expenses, a bond may not hold up in court. Others mentioned that a contract, especially one involving monetary penalties, must be signed on notarised paper to be enforceable under Indian law.
The situation also raised concerns about employee awareness of contractual obligations and legal rights. Experts suggest that unless training costs are involved or a signed bond exists, companies may struggle to legally enforce such claims.
As such cases are growing in number, the incident highlights the need for clearer guidelines and legal education for both employers and employees in the Indian tech sector
