New Delhi, May 20 -- In a development that has the potential to lower attrition rates across industries, a Supreme Court judgement late last week allowed employers to enforce a service bond. The court order clarified that companies can mandate a minimum tenure and recover training costs from employees who leave prematurely without worrying that it will violate the country's contract law.

The judgment stemmed from a dispute where an employee-Prashant B. Narnawareof Vijaya Bank-was required to pay Rs.2 lakh as 'liquidated damages' for quitting his job before completing a mandatory three-year service. While the Karnataka High Court ruled in favour of Narnaware, the apex court reversed the judgement in its order on 16 May.

"From the prism o...