From Cost Recovery to Coercive Control? Reexamining Pilot Employment Bonds under India Evolving Employment Relations Regime
Published: 2025
Author(s) Name: S Senthil Ganesh |
Author(s) Affiliation: Professor (Strategy &General Management) at the Xavier Institute of Management, XIM Univ., Odisha
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Abstract
This article interrogates whether the pilot employment bonds remain proportionate cost-recovery tools or have drifted toward coercive control within India evolving employment relations regime. Employing a doctrinal–comparative methodology, the study reviews statutory provisions, DGCA circulars, industry reports and ten landmark judicial decisions delivered between 1945 and 2025. Courts consistently validate bonds limited to unrecovered training expenditure but strike down clauses that impose punitive liquidated damages, criminalize breach, or extend notice periods beyond operational necessity. Current industry practice often exceeds these judicially endorsed thresholds, entrenching power asymmetries and restricting labor mobility. The paper proposes a governance framework comprising a 50 per cent recoverable- cost cap, straight-line amortization, three-month notice ceilings, automatic noobjection certificates, and an industry escrow fund.
Keywords: N.A.
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