Worked with one big Indian company here in Malaysia last time and I see intimidation as common means of dealing with employees. Unfortunately, it doesn't really work well here, since most of people have a lot of choices moving around. I've been pushed to accept work that has a minimum wage in a different country, despite my experience and the fact I can't possibly survive with my family there. I've had my resume jack…
How do they get them to pay a years worth of salary if they quit? I doubt this ever happens. Though I don't doubt fresh grads believing them and sticking it out.
Though this probably won't stand up in court, most employees wouldn't risk putting their own father through the trouble of finding out.