An Indian IT professional who declined a job offer on his very first day of onboarding has become the center of a heated discussion after receiving a penalty notice demanding Rs 5 lakh from his employer. The company accused him of breaching the contract and absconding without serving the notice period, despite the fact that he had neither drawn a salary nor used any company resources.
The incident came to light when the techie shared his experience anonymously on Reddit. After completing the recruitment and onboarding formalities, he decided not to join due to personal and professional reasons and promptly informed the company via email the same day. Contrary to his expectations, the company responded with a penalty notice citing breach of contract or bond.
This episode has ignited widespread debate about the legality and enforceability of employment bonds in India’s tech industry. Many online users and legal experts argue that unless formal training was provided or costs were incurred by the employer, such bonds or penalty clauses may not hold up in court. It was also pointed out that for a monetary penalty to be enforceable, the contract typically needs to be signed on notarised paper under Indian law.
The case underscores the gap in awareness among employees regarding contractual obligations and their legal rights. Experts recommend that companies ensure clarity and transparency in employment agreements, particularly when penalties are involved. They also stress the importance of educating both employers and employees about employment bonds, legal boundaries, and enforceability.
With such cases on the rise, the incident highlights the pressing need for clearer legal guidelines and enhanced contractual literacy within India’s tech sector to protect the interests of both parties.
