Service bond
CA Hardeep Singh
(Querist) 13 July 2013
This query is : Resolved
Hi,
I am Revenue Accountant in Punjab State Power Corporation Ltd, a Public Sector enterprise( formerly Punjab State Electricity Board). I have joined my present service in Nov 2012... there was no bond clause in advertisement published by PSPCL. But at the thime of offer letter, they inserted a bond clause of 2 years. They infact retained our original certificates and deny to retuen back even a request made by me to them in May 2013. Now, I am selected as Section officer, Department of finance, Punjab Government. I have heard about DPE guidelines and transferablity of bond. But inspite of my requests, PSPCL officilas are in no mood of listening anything and demanding from me bond amount near about 2 lakhs which also includes induction training cost..
Now my question is :
1.What should I do now because my original certificates are with them and they are in no mood of relieving me without taking bond money?
2. If i pay now, whether any remedy available to me later on by demanding money paid under bond?
3. Training provided to us was very general in nature like giving service tax, income tax, contract act knowledge to CA Final/Inter student. So whether it comes under scientic training and technical training term meaning thereby value addition to employee??
4. Can a bond clause is valid if was not there in Advertisement but later on inserted in offer letter??
5. There was drafting mistake in offer letter. Offer letter itself mention about demanding back all salary paid to employee incase he leaves before 2 years and also mentions to execute bond for this which states maximum amount is of 3 months pay. How much they can demand???
Dr. Jyothi Vishwanath
(Expert) 13 July 2013
Bond clause is absolutely valid even if it is not specified in the Advertisement.
It can be inserted in the offer letter.
If there was a mistake in the offer letter, then that should have been rectified before the problem arose. Now the offer letter holds good.
Once you pay money now, you cannot recover it back. [not only in this case, anywhere you pay, think your money gone]
Training provided to you may be general but it was provided to you as per rules. So no issues arise regarding it.
So if you feel that the new job is worth, then you have to make the payment specified in the bond...
CA Hardeep Singh
(Querist) 14 July 2013
But what about DPE Guidelines? are they not applicable on Punjab state power corporation and punjab govt?
CA Hardeep Singh
(Querist) 14 July 2013
http://www.dpe.nic.in/important_links/dpe_guidelines/personnel_policies/glch2dindex/glch02d31
venkatesh Rao
(Expert) 15 July 2013
In my opinion, You may set the law into motion by approaching CAT. Advertisements must be exhaustive and self contained. Failure to mention about bond period is a serious lacuna and not a good sign of a valid invitation to offer. Future correction of such irregularity will not cure the inherent defect. Any amount of consent by parties will not repair the void invitation.
Dr. Jyothi Vishwanath
(Expert) 15 July 2013
Sometimes advertisements are silent regarding these types of bonds. Later if selected, the bond will be signed between the employer and the employee. This is absolutely perfect.
Dr. Jyothi Vishwanath
(Expert) 15 July 2013
If the employee has any problem with the bond, he can refuse to join service.
But since all are interested in joining first, they usually join and raise all these issues later.
CA Hardeep Singh
(Querist) 08 August 2013
Thanks Dr. Jyothi Vishwanath Ji, Venkatesh Rao ji, Rak kumar makkad ji.....
