On May 14, 2025, the Supreme Court or SC passed a key judgement in the case of Vijaya Bank v. Prashant Narnaware[1] on the legality of service bonds in employment contracts. Service or employment bonds (“Employment Bonds”) refer to contractual agreements wherein an employee agrees to work in an organisation for a minimum specified period or pay a pre-decided sum (liquidated damages) in case of premature resignation, which are often a precondition for hiring and/or promotions.
More info : https://www.psalegal.com/vijaya-bank-v-prashant-reconciling-employee-rights-with-talent-retention/