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Sachin Vishwakarma (Asst. HR Manager)     30 December 2011

Bond

If an employee signed a 2 yrs service bond with the company(Software). That bond is on 100 Rs. stamp paper and the bond amount is Rs. 1,00,000. At the time of signing the bond, it was told to him that you will be responsible for Admin work (Daily routine work). Just after one month of joining, he was told by the management to take care of accounting part of the company. Then he was forced to get the candidate for training in the company. After three month, management has given him a target to get atleast 10 candidate for training.  He informed this to the company but they are forcing him to complete his target otherwise they will jeopardize his career.
My question is if he leave before completion or after completion of the bond period then what they can do?
1. Can they file a case against him or incashed the bond amount?

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 11 Replies

pratik (self working)     30 December 2011

good question

Kumar Doab (FIN)     30 December 2011

What is the position offered and KRA's expressed related to position offered as per appointment letter? Usually it is mentioned in the appointment letter that employee shall be responsible to perform duties at the position offered and any other duties assigned by employer from time to time.

Let us assume educational qualification of the employee is MBA (HR), this employee can be asked to look after admin, but accounting is altogether different stream and requires corresponding education and qualification.

Has the employer arranged any crash course, training related to accounting?

This candidate may be asked to look after training if the employee is inclined and willing, he may agree to handle sessions on training related to soft skills, group behavior, motivation, team building as these may have been part of his curriculum, but if he is asked to provide training related to software programme of the company it is not his area of expertise.

Moreover training is also altogether different stream and requires corresponding experience, expertise.

Has the employer arranged any crash course, training related to training?

Did the employee submit any objection to the employer so far?

Is the employee is perturbed now only due to the reason that some targets have been assigned to him? Or that he is not able to achieve his targets? Many of the management institutes confide that now a days students do not prefer to undertake MBA in sales and marketing but prefer to study MBA in other streams since majority of the students do not want to be in  streams which are target oriented. Similarly many of the consultants also confide that candidates prefer positions in back end/back up support.

However companies bigger or smaller are inculcicating a target oriented culture.

Has the company conducted any training helping him or how to achieve his targets?

This employee has to muster courage, confidence, skill to submit his dissent and a difficulty being faced by him, as the company is asking him to perform the jobs for which he is not appointed and for which he is not inclined as well as he wishes to nurture career in HR only.

He has to build record in his favor. If need be employee has to establish that employer is unworthy of being employed with. If the employee is smart he shall do so and separate. However employee must approach a  competent and experienced service lawyer and show all of his documents and submit carefully drafted and structured communications to the employer.

Simply because he has signed a bond does not imply that this bond can be flaunted at him and he can be treated as a domestic servant.

If the employee separates after completing the time expressed in Bond Company can not bond him   If the employees separates without serving the time expressed in Bond Company may/may not proceed to recover the bond amount.

Company shall have to justify the cost incurred on the employee to the tune of Rs. 1 Lack.

 

 

Sachin Vishwakarma (Asst. HR Manager)     31 December 2011

Thanks a lot Mr. Doab,


It's really gerat information and I can help that employee in better manner.

 

Thank you very much

Siddharth Kulkarni (Legal Advisor)     02 January 2012

Great answer by Mr. Doab. Merely signing of bond does not ipso facto bind the employee to do anything for the employer. There must be a substance of “relevancy” between the qualification of the employee and job assigned to him by the employer.     

1 Like

Pankaj (Area Sales Manager)     09 January 2012

Sir, will you please tell me, a manager who is consider as a part of management, is comes under labour act ? or any other. Kindly tell me, if he has any disute with the company then in which act he can fight his case?

Kumar Doab (FIN)     09 January 2012

Designation alone does not decide.

In Pharma sector Area Sales Manager terminated by the company has won in labor court and labor court ordered reinstatement with back wages.

In case of a dispute/doubt it shall be appropriate to approach a competent and experienced service lawyer with appointment letter and all docs, and the lawyer shall help to decide the appropriate forum.

It is always better to have access to a legally trained mind.

Pankaj (Area Sales Manager)     09 January 2012

sir,

 i was state head, working as a regional manager. on other page i mention all the thing. kindly respond.

Pankaj (Area Sales Manager)     09 January 2012

Sir, PLZ REPLY

Pankaj (Area Sales Manager)     09 January 2012

Sir,

waiting for your advise

Kumar Doab (FIN)     09 January 2012

You have posted a similar query at the following link:

https://www.lawyersclubindia.com/forum/Re-Contract-with-an-employee-48801.asp

 

Forum Home > Business Law > Contracts > Contract with an employee

 

Kindly consult your elders in the family, competent and experienced well wishers, lawyer/law firm and take a qualified decision.


(Guest)

The terms of appointment and the purpose of appointment mentioned in the appointment letter and the bond matters the most. You may please check language of both the documents carefully.


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