Retention bond

Nanasaheb (Querist) 18 August 2016 This query is : Resolved
Dear Sir / Ma'am,

We have Manufacturing company. we done the Retention Bond with an employee for 3 years and per year paid in advance 1 Lakh Rs only against retention Bond. after 3 Yrs this amount will be merged in salary hi/her (CTC). There is 1 clause Mentioned that if employee leave the service during the 3 years entire retention amount shall be recovered.
Means If employee left in the 3rd year can we recover the entire amount i.e. 3 Lakh Rs. is it possible.

I request to all seniors please guide me.

Regards,
Nanasaheb

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adv.bharat @ PUNE (Expert) 18 August 2016
No only 1lakh that was give at time of bond along with other charges as per agreement of appointment.
Thanks

Devajyoti Barman (Expert) 18 August 2016
tHIS AGREEMENT IS PURELY ILLEGAL AND WOULD BE DECLARED AS NULL AND VOID IF ANY EMPLOYEE CHALLENGES IT IN COURT.
I WONDER HOW YOU MADE IT WITHOUT TAKING LEGAL ADVICE FROM AN ADVOCATE.

Rajendra K Goyal (Expert) 18 August 2016
Commercial query, show all documents and discuss with your law cell / legal adviser.

Kumar Doab (Expert) 18 August 2016
I concur with Mr.Barman.

The amount was not to be paid/paid on DOJ and was to be merged in CTC after 3 years implying it was not be paid on 1st day of 4th year.

You have not mentioned the ground/extra ordinary favor in lieu of which the Bond was crated?

you should have consulted an able counsel before creating such Bond.

Nanasaheb (Querist) 19 August 2016
Dear Sir,
Good Morning

Thank you very much for advising.

1) Retention Bond has given one of the Advocate.
2) Bond is Created in favor of Comapny (employee not to leave the services at least 3 years)
Question is:-
1st year 1 Lakh paid, 2nd Year 1 Lakh Paid and now the employee is in 3rd Year he left the services.
Whether we can able to Recover 1st year and 2nd Year Paid amount (Rs.2 Lack)?

Also I am very glad to know from you expert the fesibality of the Bond.

Regards,
Nanasaheb

Kumar Doab (Expert) 19 August 2016
It is felt that :

It is yearly payment.

The employee was in employment for two full years and paid.
For 3rd year you can consider pro rated payment.

Guest (Expert) 19 August 2016
Have not you consulted that lawyer, who gave you bond? If not any reason?

cherukuri prasad (Expert) 22 August 2016
You can't. The principle of quantum meriut will be applied.

Nanasaheb (Querist) 22 August 2016
Dear Sir,

Thank you very much sir,

This is very amazing forum to enhance the knowledge and networking.

Regards,
Nanasaheb