Sekhar (None) 14 September 2013

Training bond hassle

I executed a training bond for 2 years in a foreign MNC in Hyderabad joined on 19-Jan-2012 and left the company on 13-Sept-2013 through proper resignation serving notice period.

The cost of the bond is 3.5 lakhs and the employer threatened to hold my release letter, service certificate and full & final settlement if the amount is not paid.

To avoid hassles I paid the above amount by cheque on the last working day and made my exit smooth.

But I wanted to move legally with my employer in near future within next 6 months after I receive my full and final settlement and other documents.

I want to talk to an expert lawyer in Hyderabad and see if we can move legally to recover the training bond amount.

Few highlights and facts:

Employer did not give any training on the technology mentioned in the bond. I worked in completely different department. Employer cannot prove the training costs, because no cost was incurred to train me.

The last bullet point in the bond states that "any disputes arising out this bond is subjected to arbitration". Not sure if an arbitration dispute can be challenged in the cout of law.

It is one sided bond and the employer clearly indicated in the bond that that they can terminate my employment for whatsoever the reason is during the period of 2 years.

The training bond is not enforced to all employees who join in the same role/designation as that of mine. I was subjected to discrimination and mental harassment.

Thanks

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3 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 14 September 2013

You have mentioned two points purportedly in your favor:

1. No training was given. It is difficult to prove this.

2. Others were relieved without demanding pay-back of the amount. This amounts to discrimination and is a valid point, provided the employer had nothing to say to back-up his stand.

Kumar Doab (FIN) 14 September 2013

Dr. Ramani has given valuable advice. Kindly follow it.

Your resolve is appreciable. You have gone thru your matter and apparently you have merits.

You have been tricked.

The question arises why should an employee fall for such employment?

Employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm, before signing on the dotted line, and avoid legal traps.

It shall be appropriate to show all docs including but not limited to job advertisement, interview call letter, selection letter, offer letter, appointment letter, standing orders applicable to the establishment, Bond, CTC sheet, HR policy, notice of resignation and its acceptance, FNF sheet, any service agreement etc to your lawyer and let all representation be drafted by your lawyer. The lawyer that has seen all of your docs can advice you the best.

You may approach labor consultant/service lawyer specializing in such matters and may also seek opinion from a lawyer specializing in criminal matters.

The employer has breached the contract/bond.

The employer and its cronies in HR/Line management have flaunted the bond (which should otherwise be void) and has extracted payment by intimidation/coercion………………….Charge them by name and let them appear before magistrate in person……………..

The lawyer can advice you on steps that you should take.

If the bond is void then is it still required to go for arbitration?

You may clarify who shall appoint and who shall be the arbitrator?

Assuming that employer shall appoint arbitrator or say MD, Head-HR, Legal Advisor of employer shall be arbitrator, then if the matter is place before the arbitrator it would either be delayed or a biased decision may be given.

The question arises would the employee have faith in such appointed arbitrator?

Your lawyer can elaborate the grounds on which the arbitral awards can be appealed e.g : fraud or bias by the arbitrators, violation of natural justice, or has been passed in contravention of the established principles of law, or if it is shown that grave injustice has been done to the party,etc

Let your lawyer explore the possibilities of issuing legal notice to good offices of MD, appointing authority etc…………..cite breach/criminal breach or that since no training is provided in lieu of which bond was created and liquidated damages were to be paid, hence reference to the arbitrator can not be made or the arbitrator does not have scope or jurisdiction ……………..or go for appointment of arbitrator.

If good offices do not provide relief employee may issue legal notice by your lawyer and legal notice from your lawyer may drill sense into the heads.

Your lawyer may ask set of structured questions and can opine that employee would be covered as ‘Workman’ as in ID Act and as ‘Employee’ as in Shops and Commercial Establishments Act or not and which would be appropriate forum to agitate……………….

Satisfy yourself fully on the merits in your case and proceed under counsel and advice of a lawyer/law firm that is expert in such matters.

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