Service bond cpsu

AMIT YADAV (Querist) 06 July 2014 This query is : Resolved
I am working in a nationalised PSU general insurance company since 1 .8 Years... I have entered a service bond for four years according to which if I resign before 4 years I have to pay 1 year full salary plus training cost. Problem is I am not satisfied with my current job & I want to leave because My boss is not forwarding my NOC applications for other jobs & therefore I am not showing now anywhere that I am working here. I am very much frustrated by mangament attitude because & want to resign. My query is such a bond is valid can the company ask me 1 years salary plus training cost which is so huge & I am not in condition to pay & secondly what to do if they are not giving NOC willfully delaying my papers. Please help

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P. Venu

(Expert) 07 July 2014
The conditions are unreasonable. Salary is the remuneration for the service you had rendered. It cannot taken or demanded back. It amounts to denial of salary.

However, your employer is entitled for return of expenses incurred in special training, if any, imparted to you.

Guest (Expert) 07 July 2014
NOC is always at the sole discretion of the employer, which you can't enforce even legally. About service bond that you could have thought only at the time of signing. However, opinion on whether the bond is valid or not can be possible only on examination of the contents of the bond.

Rajendra K Goyal (Expert) 07 July 2014
Consult a local lawyer and show him the Bond. Full contents need to be referred for any advise.

T. Kalaiselvan, Advocate (Expert) 07 July 2014
The contents of the bond between you and the employer are to be seen for rendering a proper opinion on the issue.

AMIT YADAV (Querist) 07 July 2014
Dear all, thanks for replying. Conditions of the bond are if the I voluntarily resign from the service during the period of probation which is one year or the extended period I have to pay gross salary paid to me by company for the period which is limited to gross salary of one year plus rs 25000 as partial cost of training. And in case I resign after completion of one year but before completion of 4 years of service I bond amount shall be reduced proportionally depending upon the length of service rendered after successful completion of probation.

Advocate. Arunagiri (Expert) 07 July 2014
Is there any notice period mentioned in your contract?

P. Venu

(Expert) 07 July 2014
No conditions of a contract could be unreasonable or contrary to public policy. This is all the more applicable to a public enterprise.

AMIT YADAV (Querist) 07 July 2014
Yes there is a notice period of three months before leaving the company... Or salary in lieu of notice period. I feel totally exploited that a CPSU is doing like that they haven't occurred much expenses on my training and I m ready to pay 25000 what they have asked for training cost but salary which I have earned and expended on my personal & family expenses is not valid as per natural principles of justice. Please advice...

T. Kalaiselvan, Advocate (Expert) 07 July 2014
You may tender your resignation by issuing notice and complying by the notice period conditions, this may solve your issue to a certain extent.

Advocate. Arunagiri (Expert) 08 July 2014
You are liable to give a three months notice period or you have to buy the notice period.

You can come back to us after getting the reply from the employer for your notice of resignation.

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