Service Agreement Bond Not Transferred
Abhay Kumar
(Querist) 01 May 2011
This query is : Resolved
I joined one of the leading PSUs on 04-08-2008 as Executive Trainee. On joining I executed a service agreement bond of 2.5 lakh for successfully completing one year training and three years service afterwards. Along with my appointment letter I received short terms and conditions of appointment in which the folowing was written.
“You shall not be released during your training period or during the period of operation of service agreement bond for any employment elsewhere or for study on full time basis requiring grant of study leave. You shall not apply for employment elsewhere during your training period or service period of three years, thereafter without the prior permission of management. In case you have already applied and/or appeared in any such test, interview etc before joining the service of the company, in the event of your selection you shall not join the new organization, unless you have fully complied with the terms and conditions of the service agreement bond. It may however be mentioned in the case of employment in Govt. /PSU, the bond is transferable.”
Because it was written that bond is transferable to govt/PSU I joined the company and executed the bond.
In january 2009 while I was an executive trainee governed under Apprenticeship Act 1961, I applied for UPSC Engg Services Examination-2009.I did not forward my application through my company because as per service rules no application is forwarded during the concurrence of service agreement bond. So I directly sent my application to UPSC. Before making my appication I gave a written intimation that i am applying for this exam.I got selected and alloted IRSME on the basis of UPSC ESE 2009. I gave a three months prior intimation in december 2010 in which I requested transfer of my service agreement bond as I was leaving to join a govt job. But only one week before my relieving I was issued a notice that I need to pay the bond amount before I get relieved.
I immediately raised objection to this notice and wrote a letter to executive director HR asking him reason for not transferring my bond. I did not get any reply to this letter till my relieving date and hence I paid the bond amount as I needed to get relieved.
About one week later I recieved the reply, "As per the DPE guideline DPE/Guidelines/II(c)/29 Service agreement bond is only transferrable in case the candidate applies through proper channel. As you applied directly to UPSC hence we regret that your bond can not be transferred. "
I believe my bond should have been transferred because
1.It has been done in case of most of other candidates including some from my own batch and joing same service and none of them had appied through proper channel.
2.As per comapany's service rules I never had the option of applying through proper channel.
3, The above mentioned DPE guidelines is applicable to employees of CPSEs but at the time of making my application I was a trainee registred under Apprenticeship act 1961, so there was no point of applying through proper channel.
4. Except the above mentioned line regarding bond transfer nothing is written about bond transfer so I believe it should have been done unconditionally.
5. Moreover I believe the motive behind not transferring my service agreement bond was to mentally harass me so that to give a message for employees not to leave before completion of service agreement bond.
6. Also there is no consistency in the calculation of bond amount.
Dear friends here i need support from all of you as I am not legally educated and do not know how to move forward in this case. All this has been done because of the intention of few officers in HR dept to cause mental harrasment to employees who leave the oragnisation.
Kindly provide me guidance as soon as possible
Guest
(Expert) 01 May 2011
About inconsistency, it could have been seen by you at the time of signing the bond, not when your own deed has caused some complexity for you
However, for your information, the contention of the PSU is correct that the Bond becomes transferrable only when applied through proper channel or on obtaining NOC before applying for the other.
But, if you are correct that the company had already transferred the bonds in cases where no permission was taken by other candidates before applying for different jobs or the applications were not submitted through proper channel, collect such evidences and file a writ petition in the CAT, as being a central Government Servant, now you can approach CAT.
Abhay Kumar
(Querist) 02 May 2011
Thanks a lot sir for your response.....The inconsistency that I have mentioned here is regarding calculation of my bond amount..the company has not considered my one year training period (for which I was governed under Apprenticeship act)for the purpose of calculation of my bond amount...and in most of similar cases it has been counted.
The meaning of applying through proper channel is also not clear to me....the following cases are possible..
1. I could have forwarded my application through the HR of my company(which was not allowed as per service rules.
2. I could have sought permission before applying...but that would have taken time..
3. I could have intimated that I am applying (which I did)..
now which of the above mentioned cases mean applied "through proper channel". Moreover when I applied I was a trainee (not a regular employee) of the CPSE..
