Issuance of no objection certificate for outside employment
Nishant Sharma
(Querist) 20 September 2015
This query is : Resolved
Presently I am working in Allahabad Bank as PO and I am under probation for 2 years since date of joining. I applied for Central Railside Warehouse Company (CRWC) and cleared written examination and called for interview. In interview I was asked for NOC. However as per circular of my present employer (Allahabd Bank), " No Application Job/NOC for outside employment will be forwared during probation period".It also says " You may leave the Bank's serviceby paying the amount specified in the Financial cum Surety Bond executed by you".
I showed this document to CRWC personnel but they insisted for NOC. I contacted by Bank for NOC but they asked me to show circular and refused to give NOC. Now my question is :
1. DOes this mean that I will ben ot issued NOC from my employer during NOC?
2. If NOC cannot be issued during probation if NOC cannot be issued then why other PSUs are asking for it?
3. Does this mean that now I have become slave and bonded labour of Allahabad Bank?
4.If this problem cannot be resolved where should I appeal apart from Allahabd bank to get the problem resolved as soon as possible?
5. Allahabd Bank is curbing my Fundamental Rights of Right to Life by not giving NOC to me.
Your kind guidance is required for me urgently. As I am appearing for other examinations and this NOC issue will make me ineligible for all such jobs. So please prvoide me better options to resolve this.
Kumar Doab
(Expert) 20 September 2015
Generically speaking: The situation is that NOC is not given during probation period and even if you pay liquidated damages NOC won't be issued to you till you are in probation period!
The bank employee's unions should take up such issues.
Did you contact the Bank in writing and did it reply in writing to show the Bank's circular to CRWC?
Did the bank decline to give NOC on record even if you tender the payment of liquidated damages?
Usually in such situations Bank/bankers shall refrain from posting a direct and pointed reply in writing.You may escalate to Chairman/MD with pointed questions and seek a direct reply................and exhaust the internal options.
RTI is one of the options.
If the common sense is allowed to prevail then NOC must be issued at least once the liquidated damages are paid or Pro rated damages are paid.
Another point is that why anyone needs to sign some Financial cum Surety Bond? This is drafted in lieu of what extra ordinary benefit by the bank? Or it is asked to be signed just for the reason that a citizen should feel obliged that Bank has given a job and must sign a Bond?
The court of law have delivered judgments from time to time and Banks/employers have been coining various fancy terms for its documents ( e.g: Financial cum Surety Bond) and flimsy reason's too.........
The bank's contention shall be that you have signed the document by your free will.
Such queries have been discussed in many threads at LCI e.g;
http://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp#.Vf45Zn1-jMo
http://www.lawyersclubindia.com/experts/Indemnity-Bond-12811.asp#.Vf46IH1-jMo
http://www.lawyersclubindia.com/experts/Indemnity-bond-314361.asp#.Vf46PX1-jMo
You may show all docs on record to an able Labor Law Consultant/Service Matters lawyer/Law firm specializing in such matters and proceed further after understanding the options,remedies,merits.
Rajendra K Goyal
(Expert) 20 September 2015
If rules / instruction does not permit, Bank is not obliged to issue NOC, You have joined by agreeing the terms. If you do not want to continue You may quit.
All PSU have their service rules, they can ask NOC till law does not prevent them to do so / any legal requirement is not violated / court orders not to ask NOC.
Discipline and abiding the instruction / rules of the Institution is not slavery/ it is essential and go with your rights. Slaves can not leave, you can leave the Bank.
Either continue with the Bank or may resign. If you think any instruction is against law , move to court to get it removed.
This is not a case of curbing fundamental right, if you think so, move to court against it, you may get relief if court satisfied.
Still you are in probation, discipline, hard work, mutual respect, respect to seniors, abiding rules is required while working in financial institution where you would be sanctioning huge amount of loans, agitating on such matter would effect your career.
K.S.Srinivas
(Expert) 20 September 2015
You may get NOC provided the compensation / liquidated damages as per contract are paid by you. You may consult local lawyer in this aspect.
Kumar Doab
(Expert) 20 September 2015
THE SAID BOND MAY BE AGAINST BANKING REGULATIONS………………………….PUBLIC POLICY.
Post pointed questions in writing under proper acknowledgment.
Obtain precise reply even if you have to adopt RTI route.
If you are successful in getting on irrefutable record that ‘NOC won’t be given at all…………………….and/or even if you pay liquidated damages…………………….’ Then undoubtedly It is nothing but slavery ……………………..You shall have an edge and may succeed to rather getting the offender thrown out.
Rules framed by any employer are not sacrosanct, holier than thou, and any rule/policy that takes away fundamental or constitutional or legal right of a citizen is illegal, punishable……………
It is inserted by reason in statue that ‘Employer individually is held responsible for faithful observance……………………..’
It is fundamental right of every citizen to ‘EARN’ and ‘have a source of livelihood’…………………………………..and Employee shall choose the employer.
The employee/candidate spends huge amount of resources (of self/parents/family etc), monies, precious personal and business hours to prepare, appear, clear exams and interviews conducted by banks/employers. Then Banks charge a fee for exams. Does Bank/banker insert condition on its own that…………………………………if Bank Terminates before 2 years it shall pay sayRs.5lacs…………………………and dismiss one and all involved in process of termination?
Establishment/employer……………………….including a bank is subordinate/inferior/servant to the law of the land and rights of citizens of ‘Republic of India.’
Once an order/decision/judgment is delivered by court of law a sensible bank/banker will remove the rules/policy held unconscionable/void/illegal/unfair/against public policy/………………………………….and banking regulations.
Banks/Bankers are responsible and one of the biggest contributors to the burden of litigation.
True that Banks/bankers foster the ideas that their rules are mandatory for one and all………………….It is obsession…………………..and predictive that chair has gone to the head.
True that Banks/bankers provide business to many………………………… (needless to mention names/details..)
>>> Although some references/citations have been made in suggested threads, …………………………………….you may go thru some more publications…………………………………in which CEO’s have admitted that……..:
“"This practice may not be legally tenable. Which is why, we wanted to distance ourselves from such practices. Again, how can we prevent one from joining other banks, if we cannot match financial packages?," felt UCO Bank chief SK Goel. UBI executive director TM Bhasin is in agreement. "As against using such strategy, banks would perhaps need to find out ways to offer incentives to new talents to retain them. The practice of bonds can also be legally challenged," he said.”
http://articles.economictimes.indiatimes.com/2009-12-08/news/27646978_1_bank-officers-private-banks-new-recruits
Such sensible CEO’s should also be given incentives.
>>> The following judgment is crystal clear.
Karnataka High Court
Prashant B Narnaware S/O Shri ... vs Vijaya Bank on 8 August, 2012
http://indiankanoon.org/doc/180567854/
“In this writ petition the petitioner has prayed for a writ in the nature of certiorari to quash a clause in the order of appointment dated 7.8.2007, Annexure-B, letter dated 8.8.2009, Annexure-L, letter dated 3.9.2009, Annexure-N, letter dated 6.10.2009, Annexure-Q and the indemnity bond dated 3.10.2007, Annexure-H in so far as it relates to collecting a sum of Rs.2,00,000/- from the petitioner for breach of terms of order of appointment as damages and for a writ of mandamus to direct the respondents to refund the same.”
3………………………………………………………… Petitioner submitted a reply requesting the respondents to waive the payment of Rs.2,00,000/- as the same was contrary to the banking regulations and opposed to public policy.
6………………………..(w) selected candidates are required to execute an indemnity bond of Rs.2.00 lakh (Rs.Two Lakh only) indemnifiying that they will pay an amount of Rs.2.00 lakh to the Bank if they leave the service before completion of 3 years.
7. Similar condition was imposed in the order of appointment dated 7.8.2007, Annexure-B. To this effect the respondents obtained a indemnity bond from the petitioner as per Annexure-H dated 3.10.2007. It is on the basis of this condition in the order of appointment and the indemnity bond the respondent bank insisted the petitioner to pay a sum of Rs.2.00 lakhs since the petitioner tendered his resignation before the completion of three years period of service.
ORDER
i) Writ petition is hereby allowed.
ii) The condition in recruitment
notification Annexure-A, order of appointment, Annexure-B and indemnity bond Annexure-H in so far as it relates to demanding and recovering a sum of Rs.2.00 lakhs as damages is held as unconscionable, unsustainable and unenforceable in law.
iii) Respondents are hereby directed to refund the amount of Rs.2.00 lakhs together with interest @ 9% to the petitioner.
iv) Ordered accordingly.
Sd/-
JUDGE.
Nishant Sharma
(Querist) 20 September 2015
Thankyou Mr Kumar Doab for your good suggestion and advice. First of all when I submitted my NOC application to HR Deptt they refuse to accept it and acknowledge it. They refused to give me anything in writing that they will not issue NOC to me. They simply said as per circular of Bank they will not entertain any request for NOC during probation.
Now once again I will try to collect written reply from my Bank regarding not issuing NOC then I will proceed further against my bank. While doing all this sometime I fear that Bank may take strict action against me. SO I have to think twice before writing anything to Bank. Anyway I will proceed further and will update you. Your kind advice will be good for me.
Thankyou
R.K Nanda
(Expert) 20 September 2015
no more to add.
Kumar Doab
(Expert) 20 September 2015
You are welcome!
A detailed discussion and illustration has been provided to you.
Share it with fellow employees!
HR personnel are neither your employer nor probably even appointing authority.
HR personnel are just another employee and have specific duties to perform.
HR personnel are known to litter nuisance and harass.....................within walls of the employer/establishment.
Employee should not be weak hearted.
The HR personnel should also not be adventurous.
If the matrix in your bank mentions that such/or any communication is to be sent to HR personnel then you have not erred. HR person has not performed its duty and probably indulged in unfair practices.
HR person is bound to accept, acknowledge any communication and reply……………………..even if the reply is that as per …………………..circular number……………………dated……………….NOC can not be issued and substantiate the reply with authenticated copy of the circular.
Asking for NOC, copies of rules/policies, acknowledgment, reply, submitting notice of resignation, resignation etc is not a misconduct………………..
Declining to accept a written communication, issue acknowledgment, reply, provide copies etc can very well be misconduct.
If HR is vested with job responsibility to accept a written communication, issue acknowledgment, reply, provide copies etc, then HR person has to perform this duty to justify the salary paid to him/her from public funds that are used to generate income by bank.
If HR personnel is not performing its duty then bank employee should record it (under proper acknowledgment) and submit to good offices of appointing authority, MD, Chairman……………
Remember the written and irrefutable written record (under proper acknowledgment) shall rescue an employee at appropriate time in appropriate forum.
A sensible employee will retain access to unions and an able Labor Law Consultant/service Matters lawyer/Law firm…………………………and proceed under expert advise of his/her counsels…………….
The strict action as apprehended by you may very well be termed as counterblast/vindication/defamatory/discriminatory retaliation…………………….etc and a lawyer specializing in criminal law would know how to handle it and bring the HR personnel/Bank to its knees and cool their heels in court and probably in correctional center.
Sudhir Kumar, Advocate
(Expert) 21 September 2015
1. DOes this mean that I will ben ot issued NOC from my employer during NOC?
NOT CLEAR WHAT DO YOU MEAN.
2. If NOC cannot be issued during probation if NOC cannot be issued then why other PSUs are asking for it?
NOT A LEGAL ISSUE. ASK THOSE PSUs.
3. Does this mean that now I have become slave and bonded labour of Allahabad Bank?
PRACTICALLY IT IS SO.
4.If this problem cannot be resolved where should I appeal apart from Allahabd bank to get the problem resolved as soon as possible?
5. Allahabd Bank is curbing my Fundamental Rights of Right to Life by not giving NOC to me.
YOU CAN CHALLNAGE THE RULE IN HIGH COURT IF YOU FIND VIOLATING FUNDAMENTAL RIGHT.
LET THIS PROBLEM OF NOC BE ADJUDGED ONCE FOR ALL FOR ALL GOVT DEPTTS/PSUs
Kumar Doab
(Expert) 21 September 2015
The conditions of NOC of other employers/establishments coupled with arbitrary clauses of M/s Allahabad Bank and tantrums of HR point to slavery/bondage and to render anyone employed as PO........................unemployable!!!!
You have a right to defend your interest.
Nishant Sharma
(Querist) 21 September 2015
First of thankyou to all of you for providing such a good and detail assessment of my case. I had lodged a complain against my bank for not giving me NOC on dated 21/07/2015 on www.pgportal.gov.in. I am waiting for its reply. Also today agwin I wrote a letter to Head Office of my bank for giving me NOC. I will update you all once I get some reply. Also if I do not get any reply within proper time I will approach High Court. yourvaluable suggestions will be helpful to me.
Thank you
