Legality of the agreement for on the job training
Sree
(Querist) 27 August 2012
This query is : Resolved
please give me the legality/validity of this agreement attached here with.......
Guest
(Expert) 28 August 2012
While there is no attachment, please state whether you received any training schedule/ program containing details of training module?
Sree
(Querist) 28 August 2012
ARTICLES OF AGREEMENT
THESE ARTICLES OF AGREEMENT are made and executed at _____________________ on this the _____________ day of _______________________, 2009 by and between: -
(1) Xyz co , a Company, registered under the Companies Act 1956 having its Head Office at xxxx represented by its Vice President (Human Resources) xxxx aged about xx years resident of xxxx hereinafter called as the ‘Company" -- which expression shall unless repugnant to the subject or context shall mean and include its successors-in-interest, administrators, assigns etc.,
A N D
(2) ___________________________________ S/o __________________________, aged about _____ years residing at ___________________________ ___________________________________________, hereinafter called as the ‘Trainee’ which expression shall unless or repugnant to the subject or context shall mean and include his heirs, executors, assigns and representatives etc.,
(3) ________________________________ S/o __________________________, aged about _________ years occupation Service, residing at ____________________________________________________________________ hereinafter called the "Surety" which expression shall unless or repugnant to the subject or context shall mean and include his heirs, executors, assigns and representatives etc.,
WHEREAS the company herein is engaged, in the activity of marketing and telecasting of Tv programmes all over the world through television network etc.;
AND WHEREAS the Trainee having applied to the company for being imparted the required on-the-job-training to become a qualified Management Trainee; AND WHEREAS the company had accepted the Trainee to impart such on-the-job training;
AND WHEREAS the Trainee, in consideration of the on-the-job training being sought to be imparted to him by the company, involving huge out-lays of expenditure etc., had agreed to work as Management Trainee for the company for a continuous period of Three years, including the period of Training, on such terms and conditions the company prescribes;
AND WHEREAS the company herein had required the Trainee to furnish such surety as is acceptable to them, to guarantee the due performance of the terms and conditions contained herein by the Trainee; AND WHEREAS the second party of the second part had agreed to be the ‘surety’ for the due performance and observance of the terms and conditions by the Trainee as herein contained; NOW THESE ARTICLES OF AGREEMENT ARE EXECUTED ON THE FOLLOWING: -
….2
:: 2 ::
TERMS AND CONDITIONS
1. The Trainee agrees to under go the on-the-job training for a period of one year from the date of his joining. The company is at liberty to extend the said period of Training by any further period, if the company deems such extension necessary.
2. The Trainee shall devote his whole attention to the on-the-job training imparted by attending regularly. The Trainee shall use best of his endeavors to imbibe all the necessary skills expected of a highly efficient and competent Management Trainee.
3. The Trainee shall obey all the instructions issued from time to time and shall abide by the rules and regulations of the company without any deviation whatsoever.
4. The Trainee shall be imparted on-the-job training by the company or by any other company or entity to which the services of the Trainee may be assigned / lent. In such an event, the Trainee has to under go on-the-job training and follow the instructions issued by the new entity from time to time without any deviation.
5. The company shall periodically assess the performance of the Trainee. If the company is not in any way satisfied with the performance and conduct of the Trainee, the company is entitled to terminate the on-the-job training at any time without assigning any reason whatsoever.
6. The Trainee agrees and undertakes to complete the period of Training, carrying out all the orders and the obligations under this agreement. The Trainee undertakes to work thereafter in the company conscientiously and diligently for a continuous period of Two Years on such terms and conditions as are decided by the company.
7. The Trainee agrees to duly execute, acknowledge and deliver all agreements and/or other documents at any time in future, as are necessary or expedient in connection with the on-the-job training.
8. If the Trainee commits breach of any of the terms and covenants of this agreement or is found not undergoing the on-the-job training satisfactorily or not attending the work regularly or is found guilty of any misconduct or misbehaviour or for any other reasonable cause, the company will be entitled to terminate this agreement and call upon the Trainee to pay the compensation agreed herein.
9. If the Trainee fails to perform any of his/ her obligations under this agreement, the Trainee agrees that he shall compensate the company as follows:-
I. a sum of Rs.1,00,000/- (Rupees one lakh only) if the Trainee fails to perform his/her obligations/promises during training period of One Year.
II. a sum of Rs.75,000/- (Rupees seventy five thousand only) if the Trainee fails to perform his/her obligations/promises during the first year of service after completion of Training.
III. A sum of Rs.50,000/- (Rupees fifty thousand only) if the Employee fails to perform his obligations/promises during the second year of service after completion of training.
...3
:: 3 ::
Explanation: Failure to perform his obligations include termination, dismissal or discharge for breach of any of the terms and conditions of this agreement or for any other reason, or breach of any of the rules and regulations of the company, absconding and resignation etc.,
10. The Trainee shall not be deemed to be on employee and the relationship between the company and the Trainee shall be that of a teacher and a student but not that of master and servant.
11. It is mutually agreed and declared by the parties to this agreement that the compensation agreed to be paid as aforesaid, in the event of the various contingencies outlined therein, is just, fair and reasonable, having due regard to the on-the-job training imparted and the expenditure involved for such training.
12. The Trainee undertakes to perform and discharge his duties during the Training period and thereafter with due diligence and shall not act in any manner so as to cause prejudice to the various varied interests of the company.
13. The Trainee shall not disclose any confidential information that comes to his / her notice either during the period of Training or thereafter in whole or in part in any manner to any person or persons for any purpose whatsoever. The Trainee agrees to use best of his/ her efforts to maintain all confidential information in the strictest confidence and to protect the confidentiality of all confidential information.
14. In the event any loss or damage is caused to the company by any acts and omissions of the Trainee, the company shall be entitled to recover the damage so caused together with interest at 18% p.a. and costs etc., in addition to the compensation mentioned in Clause No.9 above.
15. The surety undertakes to guarantee the due performance of the terms and conditions contained herein by the Trainee. In the event of non-observance of any of the terms and conditions contained herein by the Trainee, the surety undertakes to make good the loss occasioned to the company by such acts and also undertakes to pay the amount of compensation as stated in clause No. 9 above. The guarantee furnished by the surety herein shall be irrevocable and continuing and shall not be considered as wholly or partially satisfied by the payment of any money by the Trainee unless the entire amounts due to the company are received. Any indulgence, waiver, neglect or forbearance of the company in enforcing the payment of any monies due from the Trainee shall not in any way release or discharge the surety of his/her liability under this agreement. Likewise, the guarantee herein given by the surety shall not be affected by any change in the constitution of the company.
16. In the event of any dispute (including any Industrial Dispute) or difference which may arise between parties or their representatives with regard to the construction, meaning and effect of this deed or any part thereof or their respective right and liabilities there under, the same shall be referred to the sole arbitration of an arbitrator to be nominated and whose award shall be final and binding on the parties. The provisions of the Arbitration and Conciliation Act, 1996 shall govern the Arbitration Proceedings.
17. The jurisdictional civil court situated in xxxxx, Andhra Pradesh, shall alone have jurisdiction to try all causes between the parties including the causes under Arbitration and Conciliation Act, 1996 as amended from time to time to the exclusion of other courts.
18. All notices which a party is required or may desire to serve upon the other under or in connection with this agreement may be served, by delivering them personally, by fax, e-mail, courier or by registered post at the addresses specified above.
IN WITHNESS WHEREOF the parties hereto have executed this agreement to constitute a valid and binding agreement between them.
WITNESSES: for xxxxxxx
1.
__________________
2. THE COMPANY
_______________
TRAINEE
_______________
SURETY
Sree
(Querist) 28 August 2012
the training is being received for an year.....
Guest
(Expert) 28 August 2012
The agreement is for on-the-job training, which means you had to learn while doing your day-to-day routine job, which cannot be said invalid.
Trivedi Advocate
(Expert) 28 August 2012
Dear Sree,
The above agreement in between three parties, moreover the Agreement clauses is fine as they give you a on-job-training afterthat they will give you to employement in same company but in conditions, as per above Agreeement Company will huge expence on you for training for that they want guarantee that you will not leave the job before 03 years from the training period is fine but we have some concerns regarding clause 08 and 14.
Please take a call on clause 08 and 14 to the concerning company, we suggested that delete both clause from the Agreeement.
Regards,
Sree
(Querist) 28 August 2012
They have not incurred any amount on training, and neither the guidance was given as per the agreement. Isn't it in violation with Apprenticeship Laws??
Sree
(Querist) 28 August 2012
Dear all,
I had joined in a company as HR Trainee obliged to work for three years by signing an legal agreement(Bond) along with surety who is a government servant, after working for 16 months due to personal problems and for better opportunities i left the company, now the company is asking to pay an amount of Rs.75,000/- stating that bond Violation. They stopped my F&F, PF and relieving.
Key points in the agreement:
1.1st year of service as Trainee, 2nd year probation, 3rd year confirmation.
2. Relationship between company and employer is that of "teacher and student” and not master and servant.
3. Stating that “Company incurred lot of money for training” which is not true and there is no training given as such.
Now company executives are threatening me that they will file case in court if i didn’t pay the money.
I request you all to help me out from this problem by giving your valuable suggestions.
The above is the claim of the person....
Trivedi Advocate
(Expert) 28 August 2012
As per the above Agreement the wording are as follow:-
".......AND WHEREAS the Trainee, in consideration of the on-the-job training being sought to be imparted to him by the company, involving huge out-lays of expenditure etc., had agreed to work as Management Trainee for the company for a continuous period of Three years, including the period of Training, on such terms and conditions the company prescribes;
1) As per the wording from the above paragraph "for the training involving huge out-lays of expenditure etc., it is termed as incurred amount.
and answer of your second question is:-
2)It is not a violation of Apprenticeship Laws as it a not a apprenticeship.
Regards,
Sree
(Querist) 28 August 2012
So, here, despite of the fact that the separate agreement was drawn after the training period that is one year as mention in the agreement, and the person has worked there for 16months, will this agreement hold itself valid, aren't the employer supposed to draw a separate employment contract?
Thank you.....
Guest
(Expert) 28 August 2012
If your terms of appointment did not term you as an apprentice and received full salary of an employee, you were not an apprentice. During apprenticeship only negligible stipend is paid and that too on technical jobs (trade or occupation or any subject field in engineering or technology), not administrative jobs. So, the question and scope of application of Apprenticeship Act does not arise in your case.
Guest
(Expert) 28 August 2012
What drawback of your question is that you are providing information in bits and pieces, not in one go. At first you put a very simple academic question about lgality/ validity of agreement without even attaching or reproducing a copy of agreement. Thereafter you stated about training received for one year. But you still did not mention thcrux of the problem. Again you stated that they did not incur any amount on training, but you did not mention about the salary or training allowance you received during training. Thereafter you made a mention about the position amd purpose of training but still failed to mention, if the agreement/bond was final or some other agreement or bond was also signed after completion of training. Now you have come forward with the plea that a separate agreement was also drawn after completion of training.
The question arises, do you feel that the experts should continue to read your stories in bits and pieces after several intervals?
Can't you realise that, as a student, you are creating confusions for yourself only due to variety of answers depending upon the different versions and parts of your own question?
IT SEEMS YOU WOULD HAVE ADOPTED THE SAME PACE OF LEARNING DURING YOUR ON-THE-JOB TRAINING FOR ONE YEAR!
Sree
(Querist) 28 August 2012
I am sorry for the information giving in bits and as parts. But I got the answer I was looking for and my doubt is cleared. Yes I was confused a bit but I am out of it. I hearty thank you all for providing me the clarification needed. Thank you thank you very much :-)
And I wasn't the trainee, the person who was trainee gave me the info, so i had to post it later in pieces... but for learning, in which I had the confusion is now cleared for which I sincerely Thank you all....
Wish you have a nice time...
Guest
(Expert) 28 August 2012
It should not be treated as a teaching classroom. Even if you desire to get clarification on others problem, you must be very clear about that.
Even use of sentence "I had joined in a company as HR Trainee" by you indicated as if you had been discussing about your own problem.
Sree
(Querist) 28 August 2012
Advice is well appreciated Dear Dhingra, I did not want to change the original, that was the only intention why I did not correct it. I again thank you for making me learn, i will make sure that I would remember your advice and follow. Hearty thanks for the best support in learning and development :-)
