In conclusion, Indian courts do not frown upon employment bonds per se. But they demand that such clauses be fair, necessary, and limited in scope. A bond designed to recover actual losses is likely to be upheld. One that seeks to punish or prevent job mobility will not. Employers should align contractual practices with legal principles and evolving judicial trends. Employees, meanwhile, remain free to resign, liable only to the extent they agreed to compensate for genuine loss. As of 2025, Indian jurisprudence supports bonds grounded in fairness and mutual respect, not coercion.
