Indemnity bond
Viru
(Querist) 15 June 2012
This query is : Resolved
Hi,
I joined the Mahindra Satyam in Dec 2011 from this time till the day I relived I was on business wait (Not on Any Project); my salary was going down every month, I found this will block my career growth hence made a decision of separation from Mahindra Satyam.
During my service period Mahindra Satyam has not spend any Money for my training and by the time I left the organization I was not on any ongoing project.
While joining HR clearly told this bond is only to gain confidence in the mind of the clients & it is applicable only if we are leaving the job in the middle of any ongoing project but in my case I was not involved in the project for a day! Only with reference to his words I signed this bond, now he is not available in the company.
Now HR is not providing the Reliving letter, asking to pay back bond money.
Plz Help me regarding this
Points on the Bond:
1. In compliance of the aforesaid condition in Offer of Appointment subject to which Mahindra Satyam has agreed to give appointment to the Employee, the Employee hereby undertakes to undergo the ITP as provided by Mahindra Satyam without any interruption whatsoever and serve Mahindra Satyam, on its various projects at any location, in India or abroad, for a minimum period of twenty four (24) months from the date of joining.
2. The Employee hereby undertakes to devote his/her full time and attention to the business of Mahindra Satyam with due care, skill and diligence. The Employee further undertakes to use his/her best efforts in the performance of his/her duties and responsibilities and abide by the rules and regulations of Mahindra Satyam.
3. The Employee hereby undertakes to honor the commitment made by Mahindra Satyam to its customer/s for completion of any project/s and further undertakes not to abandon any project before its completion.
4. The party of the second part i.e. agrees to stand as Surety for the due performance of the obligation of the Employee under this agreement of indemnity. In case of breach of the terms of this indemnity by the Employee and failure to indemnify Mahindra Satyam, the Surety shall be jointly and severally liable to pay the aforesaid amount of Rs. 100,000 (Rupees One lakh only) to Mahindra Satyam with an interest at the rate as specified herein below, immediately on demand.
5. The Employee further agrees and undertakes that in case, he/she commits breach of the above conditions and resigns from or leaves/abandons the service and/or neglects in performance of the duty assigned to him/her leading to termination of his/her service as per rules/regulations, by Mahindra Satyam, he/she shall pay an amount of Rs. 100,000 (Rupees One lakh only) with the interest thereon @ 15% per annum from the date of breach of the above till the payment thereof, as liquidated damages/cost of training including on the job training, the expenses which Mahindra Satyam has incurred/may have to incur in recruiting another employee in his/her place, and also on account of business loss suffered/to be suffered by Mahindra Satyam during intervening period. The employee and surety agrees that assessment of liquidated damages as assessed as Rs. 100,000 (Rupees One lakh only) are reasonable, which they both agree to pay jointly and severally, on demand made by Mahindra Satyam.
6. Nothwithstanding anything contained herein above, furnishing of this indemnity will not create any right in favour of the Employee to continue in the service of Mahindra Satyam for the aforesaid term of twenty four (24) months, and Mahindra Satyam shall always have the right to take appropriate action against the Employee as per terms of the appointment letter and/or the rules and regulations of Mahindra Satyam as applicable, in case of commission of any misconduct by the Employee.
6. The amount specified above shall constitute a debt owing to Mahindra Satyam and shall be recoverable from the Employee and the Surety jointly and severally with interest thereon at the rate specified above till the payment thereof.
Plz Any one help me to get my Reliving letter
ajay sethi
(Expert) 15 June 2012
as per the terms and conditions of bond in case you leave the company you are required to pay rs 1 lakh . it is not necessary that company must have spent the said amount on your training .
it would also include costs of hiring another employee . it also includes business loss .
by signing bond you hahave agreed to pay liquidated damages of rs 1 lakh .
if you leave the compnay in 6 months company is justified in asking you pay bond amount . it wont give you a relieving letter
Viru
(Querist) 15 June 2012
Dear Sir,
Thanks for your Reply.
Can Company File Any case for Not paying 1 Lakh / what are the possible Actions Company can take?
ajay sethi
(Expert) 15 June 2012
there must be a arbitration clause in your contract . companay will invoke the said clause and obtain award for recovery of moeny with interest .
if no arbitartion clase then company may move court
