Bond issue and working hours
vishal
(Querist) 25 July 2013
This query is : Resolved
One of my friend has resigned from a company after 15 days of his joining due to the torture he faced.There is a bond of 3 months salary stated in offer letter.The company working hours are from 10am to 8pm with half an hour lunch break.These timings r written in offer letter.Now company is asking him to pay 3 months salary as bond amount.My question is can he escape this bond on the ground of violation of labour laws as regards working hours .Please suggest how can he escape the bond?
ajay sethi
(Expert) 25 July 2013
has he signed the bond ?he should have worked for 3 months if he has signed the bond . you are starting your career . you have to put in long hours at work . it is necessary to go through the offer letter , bond signed by you to advise
vishal
(Querist) 25 July 2013
He has signed the bond from day1.These timings are for all all employees.Due to some issue with senior he has resigned from job.My question is co violating the shop act provisions as regards to working hours since co working hours are more than 9 daily without overtime.Please reply to this query.
vishal
(Querist) 25 July 2013
Bond says that he should work for atleast one year from the date of joining but bond value is 3 months salary.
ajay sethi
(Expert) 25 July 2013
what was your designation in the organisation ?
if you want to succeed in life dont look aft office timings . these days in pvt sector you have to work for more than 12 hours a day
Guest
(Expert) 25 July 2013
Singed written conditions of bond would prevail over the personal issues with seniors. No escape seems to be there for your friend, unless he is able to find some legal anomaly and glitches in the terms of bond.
vishal
(Querist) 25 July 2013
He has not left for sake of timings.My question is can he take a plea since co is giving in writing the timings are from 10AM to 8pm with half hour break for lunch.So can he take action against co on the grounds of violation of shop act and other labour laws.May b the company can then agree for out of court settlement for bond issue.
Guest
(Expert) 25 July 2013
About timings, all depeneds upon whether the company was observing 5 days week or 6 days week.
vishal
(Querist) 25 July 2013
Co was observing 6 days week.Timings r written in offer letter issued to all the employees.No bonus is given before 8pm.
Guest
(Expert) 25 July 2013
Of course, that is a weak point of the company on which the bond agreement can be treated as void provided he falls within the catefory of worker, not management. BUT, you have still not replied the query of Shri Sethi about the designation of your friend in the company.
vishal
(Querist) 25 July 2013
Yes thats what I am thinking of but not sure since timings are in writing.So I am also thinking ki on this ground he will be able to escape bond.One more thing co has asked him to pay bond amount only then they will accept his resignation.Can they do so ?
vishal
(Querist) 25 July 2013
His designation was Manager-Finance.But he was not clear of his roles and responsibilties as this was not communicated to him.Timings were same even for accountant as well.
vishal
(Querist) 25 July 2013
Madam what r u saying he was manager-finance.You shud hv read the above post.
Dr. Jyothi Vishwanath
(Expert) 25 July 2013
When i read your query whole, nothing was specified about designation inspite of repeated question about this by different experts.
ANyway, the bond is valid as your friend has signed. If you feel that the terms of the bond were against law (timings) you could have challenged them before resigning. Not this way to save your skin. One who comes to court to seek justice, should come with clean hands.
Signature of the bond is acceptance of its terms.
vishal
(Querist) 25 July 2013
I agree with you but his circumstances are such that he has to resign suddenly.He can challenge the terms(timings).He didnt thought earlier that he will leave the co.Please reply
Dr. Jyothi Vishwanath
(Expert) 25 July 2013
He can take a chance by challenging then if he has no option. May be the company feels pressurized and agree to forego the salary of three months.
vishal
(Querist) 25 July 2013
Co has not not given salary for the period he served and also made reference about that salary while claiming bond amount from him.
prabhakar singh
(Expert) 25 July 2013
Unless your friend comes under definition of a labor he can do nothing.A managerial administrative job is 24 hrs.round the clock job.
Right now the Co. is better placed as unless it accepts resignation your friend shall get no relieving letter from it and would not be
in position to get any new job elsewhere and choice of contest in courts may get him too old to get a fresh job.
vishal
(Querist) 25 July 2013
As per shop act he is covered as employee since he was working in a trading company whose business was purchase and sale.So ur view that he comes under definition of labour is not valid.
vishal
(Querist) 25 July 2013
I am Chartered Accountant but I have read the shop act so i know that he will be an employee and working hrs cannot exceed 9 hrs in any day and total hrs in week cannot exceed 48hrs.I know that there are no working hrs in pvt cos.But then they dont mention also in writing.Here in case of my friend timings r in writing i.e 10am to 8pm.
prabhakar singh
(Expert) 25 July 2013
I have not questioned your education nor your views,i have just expressed my opinion may be in your view that is incompetent for which i do not mind till you gain experience in courts that i poorly educated was really correct.
Dr. Jyothi Vishwanath
(Expert) 25 July 2013
One thing your friend can do. Since his resignation is not accepted, see if he can join the company back. He has very weak legal remedy. I full agree with Prabhakar jii.
vishal
(Querist) 25 July 2013
Can he just ask co to do out of court settlement and abandon the bond and release by saying that co is also violating the timings provisions.May be the company also doesnot want to land in court case so both can mutually decide.I just want to ask ki whether timings provisions is applicable to co .
Rajendra K Goyal
(Expert) 25 July 2013
Why should company enter in out of court settlement when it has signed bond with it and your friend has not observed the conditions of the bond. If it enters it is better for your friend. Any issue of timings would be taken by the workers with the labor department, or your friend can complain. Bond payment and timing issue with labor department are separate issues with different authorities. I doubt your friend can get any relief practically due to this issue.
vishal
(Querist) 25 July 2013
I agree with you that bond payment and timing issue are two separate issues but my point is mayb he can hv a word with him regarding this with co and that timing issue is weak point of co and signing bond is weak point of him.so mayb co will not want to move court for timing issue since co knew that it is wrong as per records also.So mayb they both can decide mutually.
Guest
(Expert) 25 July 2013
Mr. Vishal,
Due to some contradictions, I have my own doubt about your statements, whether the case actually relates to your friend or your own employee with whom you might have entered in to some bond.
You have stated, you are a CA, but your profiles speaks about you as a proprietor.
You have stated about shop act, but you have not mentioned the full name of the shop act, to which state that relates and which section prescribes that working hours should not exceed 9 hours a day.
If you knew the provisions of the so called shop act, you would not have entered in to such a long discussion.
On one hand you say that working hours should not exceed 9 hours a day, but on the other hand you are discussing about out of court settlement and abandon the bond, as if as a proprietor you are afraid of the illegality of the bond, when you have nowhere stated that your friend or the company has filed a court case.
It would be better if you come clear with the real problem. Else, may you be involved as a so called company or in the capacity of a friend of the employee, you would not be able to get proper solution either way. Offence and defence are quite distinct issues to be dealt with separately in law on merit of each issue.
vishal
(Querist) 25 July 2013
Sir I am asking in capacity of my friend.I have created the account in lawyersclubindia when I was not CA.I am talking about Punjab Shop Act.I just want ki my friend neednot pay bond amount and just want to confirm myself whether provisions of shop act will be app to the co concerned since I dont know much technicality of law.
vishal
(Querist) 25 July 2013
I want that my friend shouldnot pay bond amount and this is possbile by giving ultimatum to co that co is violating the timings provision of punjab shop act.So if co doesnot agree then he may move to court for illegality of bond.
Guest
(Expert) 25 July 2013
The provision of the Punjab Shops & Establishment Act says, "no person shall be employed about the business of establishment for more than forty eight hours in a week and nine hours in any one day.
vishal
(Querist) 25 July 2013
thats what I am saying since total working hours per week exceeds 48 hours without any overtime.
Guest
(Expert) 25 July 2013
You can take advantage of the provision.
vishal
(Querist) 25 July 2013
Thanks a lot PS Dhingra Sir.You have resolved my query.
vishal
(Querist) 25 July 2013
Sir do you know about the penalty under punjab shop act for violating this provision
Guest
(Expert) 26 July 2013
By the way, what is your concern about penalty, when yor friend does not have any power to impose any penalty on the employer and also that he is interested in out of court settlement?
This forum is not meant for conducting tutorials on law. If you want to go for settlement through court, it is for the court to decide about penalty, not you or your friend. Moreover, when you confirm that you know about shops and establishment act, you are also supposed to know which section of the act provides for the penalties, etc.
However, your present query about penalty has confirmed my doubt that your query was not for the employee, but was for the employer, i.e., yourself. In that case, being an employer, you can very well afford to hire service of some local lawyer.
Mind it, free services are meant for individual and non-commercial justice seekers, who really have some problem to face.
prabhakar singh
(Expert) 26 July 2013
Mr.C.A. should re read the provisions of the Punjab Act no.15 of 1958 and rules framed thereunder and thereafter come back with reference to particular section he is trying to assimilate.
Theek kaha gaya hai ki "adhjal gagari chalkat jai"
Raj Kumar Makkad
(Expert) 26 July 2013
It shall be better for you to be particular while raising the issues instead of linggering it on without any new point.
vishal
(Querist) 26 July 2013
I am particular about my points.You dont comment if you are not satisfied with my comments.
Dr. Jyothi Vishwanath
(Expert) 29 July 2013
Mr.Vishal, Mr.Makkad Jii is the senior most expert. I think you have to be aware that you are addressing the most esteemed senior expert of our forum.
All are trying to solve your problem and you are talking arrogantly.
vishal
(Querist) 29 July 2013
I apologise if I hurted someone.I didnt mean by saying so.
