Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Shyamol Banerjee (lecturer)     08 October 2013

Institute/company executing bond by pressurizing

If a organization forces an employee to sign a bond by telling that the present salary won't be given until unless a bond is signed. And the conditions are that a employee cannot leave the organization for a mentioned time period on his own will, if he leaves he has to pay 2 Lakh rupees.

And if the organization fires him due to any reason, even in that case he has to pay the same amount.

What will happen if the person signs the bond to get the salary and later if he receives a good opportunity, he leaves the the institute , will there be any legal issue in that case, or there is any provision in the law that a bond cannot be executed forcefully , or if any how the bond is signed, it can be cancelled by telling that bond has been signed under pressure.



Learning

 1 Replies

Kumar Doab (FIN)     09 October 2013

 

It is good that you are consulting before signing on the dotted line.

 

 

Everyone understands that it is better to consult in advance than to repent later.

 

Nothing can be executed forcefully.

Assuming that you wish to claim your signature on bond was taken……………..months back  by applying force, coerce, intimidation…………………………….the onus of providing evidence may lie upon you.

That is why employers resort to verbal transactions in office.

The unorganized/non united employees are easy targets. The employees which have unions/guilds/IC/association and are members of trade unions are not easy targets.

Why don’t you keep witness/evidence and record the transactions (audio/visual).

Gather any evidence to term employer as unworthy of being employed with.

Earned wages can not be stopped.

You can decline to sign. If you decline to sign your employer may in fact block salary and terminate the employment………………………….who can stop an adamant employer………………..!!!

If you do not want to sign and decide to separate submit notice of resignation and do not resign with immediate effect……………………

If the actions of the employer are bad you (employees) can agitate. However the burden of litigation falls upon employees.

An employment contract should promote equitable discretion.

The bonds/service agreements/Non Disclosure-Non Compete-Non Solicitation/IPR etc are now global fad, an imported idea which almost all employers find appealing and are applying it.

The advantage seems to be that employee gets bonded but employer does not accused of bonded labor. The documents coined as ’Agreement ‘ gives some kind of legality to the approach of employer…………………….

Apply age old wisdom and statistics:::::

Majority of the employees can be coerced/forced, do not agitate, are fearsome, have availed loan, do not want to consult a lawyer, do not want to become members of trade unions, do not want to be in litigation, salary is their only income,……………………are way from parents, are staying alone in a new city, do not have social circle etc……………..

Only a few shall agitate and majority of them shall be subdue if their relieving is declined ……………………………..

Employers are united::::::Employees are not……………..

 

All contracts may not necessarily be having legal force…………………………and may get termed as void, unconscionable, unreasonable, excessively harsh, illegal, invalid, unenforceable………………………..

 

However if you wish to decline to abide by the terms of the contract after signing it employer may./ay not pull you to court of law. It may claim legal injury/breach of confidence or trust or whatever is advised by the lawyer of the company…………….and/or you shall have to approach a court of law to get the bond declared as illegal, unlawful, bad……………………….

Your averments that ……………………..months back employer forced you to sign it may/may not work. It is pleasure of the court of law. If you have unbeatable evidence you can produce.

Why don’t you take the copy of bond to your labor consultant/service lawyer.

Your lawyer may opine to  submit your response e.g; company has not incurred any expense to provide any training then why it is levying condition to serve for………..years or the condition/clause number……………………is unacceptable and may be modified to………………and thus defends your interest.

Here again your employer may turn vindictive and may resort to termination: directly or tactfully.

 

Do the standing orders apply to the (certified or model) and has it been extended to your designation?

Standing Orders should have been displayed at a conspicuous place/notice board and a certified copy should be supplied against a nominal charge say Rs.10/-

Or you may obtain a copy from certifying officer (DLC) in o/o Labor Commissioner at location of Redg office/HO of the company against a set fee.

The Standing Order Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies. Section 2 (e) (iv)…………..

The service agreement may be violative of the standing orders applicable to the company.

It is a matter of common sense that if company want to get something then it is imperative to look into what is offered by it in lieu of the items/service it wants from employee.

You may show the job advertisement, job application, interview call letter, selection letter, offer letter, standing orders applicable to the company (certified or model) appointment letter, service agreement copy to your lawyer and proceed under expert advise of your lawyer………………………………The lawyer that has seen your entire docs and has analyzed your inputs can advise you the best.

 

You may find the attachments useful and relevant.


Attached File : 559773225 417759075 validity of employment bonds.pdf, 559773225 background paper.pdf downloaded: 116 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register