Service agreements and bonds in IT jobs: what freshers should know
Many fresher offers come with a bond. Read it before you sign, know what leaving early costs, and don't hand over your original certificates.
Last updated 2 Nov 2026
Many fresher offers in Indian IT include a service agreement, often called a bond. It says you will stay with the company for a set time, and what happens if you leave earlier.
A bond isn't automatically bad. Companies spend money training freshers and want some of it back if you leave in a few months. But you should understand the terms before you sign, because they can be hard to undo later.
This guide is general information, not legal advice. For a specific contract, talk to a lawyer.
What a bond usually says
- How long: often 1 to 3 years from joining.
- What leaving early costs: a fixed amount, or a share of training costs, often reducing over time.
- Notice period: how many days' notice you must give before leaving.
- Documents: sometimes, a demand to keep your original certificates.
Questions to ask before you sign
- How long is the bond, and does it start from joining or after training?
- Exactly how much do I pay if I leave early, and does it reduce each month?
- What if the company asks me to leave, or I fail training? Do I still pay?
- Do you keep any original documents? If so, which ones, and when are they returned?
- Can I get the agreement in writing before I accept the offer?
Ask by email, so you have the answers in writing.
Original certificates
Some employers ask to keep your original marksheets or degree certificate for the length of the bond. Be very careful with this:
- Offer self-attested copies instead, and show the originals for checking only.
- If they insist, ask for a written receipt that lists each document and says when it will be returned.
- Without your originals, it can be hard to apply for another job or higher studies.
How Indian courts see bonds
In general, Indian courts have been more willing to support a bond that recovers real, reasonable training costs than one with a large penalty meant to stop you leaving. But every case depends on its facts and the exact wording. Don't sign assuming a bond "isn't legal anyway".
When a bond is a red flag
These are signs of a scam or a bad employer, not a normal bond:
- You must pay money before joining, as a deposit, "bond amount", "training fee" or for a laptop. Real companies don't charge freshers to join.
- The bond is only mentioned after you've resigned from somewhere else or travelled to join.
- The penalty is huge compared with the pay, for example more than a year's salary for a short bond.
- They refuse to give the agreement in writing before you sign.
- Recruiters contact you only on WhatsApp or from a Gmail address.
If you're asked to pay, it's a scam. Call 1930 or report it at cybercrime.gov.in. See Spotting fake fresher job offers, or paste the message into our scam checker.
Should you sign?
If the company is genuine, the bond terms are clear, the penalty is reasonable and you plan to stay through training anyway, a bond is usually fine for a first job. If something feels wrong, ask more questions before you accept. A good employer will answer them.
Related guides
- HR interview questions for freshers, including how to answer "Are you okay with a bond?"
- Offer letter, but no joining date
- Company guides: TCS, Infosys, Wipro, Capgemini