Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Saajid   13 December 2017

Bond and original certificates reatined by employer

Is it legal for companies to keep the original certificates of the employees. I am into a bond with a company for a period of 2 years ( of which 8 months have been completed). Now I am lacking interest into this job. The bond was signed for an amount of 1 lakh Rupees if I break the bond. It is difficult for me to compensate such a huge amount as I earn only 10k per month. And the bond also states that my father who is a central government employee will have to pay the bond amount if I breaks it. Is there any way to come out of this situation.


Learning

 12 Replies

Kumar Doab (FIN)     13 December 2017

Employee should always avoid signing on dotted lines without consulting elders of the family, competent and experienced well wishers, employee’s/trade union leaders, a very able senior counsel  of unshakable repute and integrity specializing in such/Labor/service matters and having successful track record.

You and your father have signed the Bond with your free will.

If the company decides to proceed legally IT may make the father a party.

It was not advisable to sign such Bond, and handover original educational certificates for a job offering on such low salary and such harsh conditions.

Kumar Doab (FIN)     13 December 2017

Perspectives:

Ask the company to agree to accept payment on pro-rate basis and accept your resignation and provide proper relieving docs and return your original docs.

Arrange the funds and close.

 

Apply your skills and/or take help or Request the company to liberate you from Bond without any payment of liquidated damages and accept your resignation and provide proper relieving docs and return your original docs. The employer can do so by IT’s free will.

Kumar Doab (FIN)     13 December 2017

 

If the company decides to chase you and approach your father and by some technique your father’s employer then your father may have to establish that company has violated the T&C of the Bond and satisfy his employer.

If you and your father can find defects then try to resolve in your favor by applying your skills of reasoning, persuasion, persistence, negotiations.

If the company decides to chase you then by our own skills or with help of your counsels IT may put the matter on permanent shut up mode.

If the company decides to chase you and issues notices, legal notice then fitting reply may put the matter on permanent shut up mode.

If the company decides to chase you and issues notices, legal notice and approaches court of law then matter shall be decided on merits in court of law.

Kumar Doab (FIN)     13 December 2017

 

As you mention that you and probably your family are also unable to arrange the funds;

The establishment has NO lien on your educational certificates.

Write under proper acknowledgment to return the originals in good condition.

If the establishment has not provided any training at IT’s cost say from some certified Instt that adds to your qualification or some extra ordinary skills then said Bond may be unconscionable, unreasonable, unenforceable, void.

Did the company ask to submit the original certificates in writing and did it provide any acknowledgment?

Do you have the copy of Bond?

Do you have the copy of job advt, job application, interview call letter, offer letter, appointment letter and did the company inform you before appointing that you have to sign the bond?

Find defects in stand of company and avoid acting in haste.

Most Imp; The next employer must be taken into confidnece so that IT stands by you.

Saajid   14 December 2017

Hello Mr Kumar I deeply appreciate your early response in regards to my issues. I am highly impressed by level of your expertise in law. I would like to add that I do have a copy of my call letter, offer letter and my appointment letter. I don't have any copy of bond. Yes the company has already informed me about signing a bond before my appointment. Is my father liable to be my partner in this bond and will be asked to pay my bond amount. If so my father is not aware that he is party in the bond as my father was never intimated about it by my employer. I would like to know what does permanent shut up mode means as it seems to be lawyers terms. My employer has not provided any training as it is a BPO where I deals with U.S customers. Being a Computer Science Engineer graduate I would like to move into IT jobs. My employer didn't gave bond copy to any of my colleagues as it is completely in favour of the company. Thanks and Regards

Kumar Doab (FIN)     15 December 2017

Ref; your 1st post/query in which you have indicated that your father is made liable.

If your father has not signed accepting the liability then he is not liable.

Without his explicit consent he cannot be made liable.

If your father signed on the Bond as say; guarantor/witness and accepted his liability then he must be aware of it and you would also be aware that your father signed and what was stated in the said Bond about your liability and your father’s liability.

You may clarify; your father did sign or not?

Kumar Doab (FIN)     15 December 2017

Common and understandable term are used.

As already suggested keep elders of your family, unions, well wishers, counsels in confidence and discuss with them.

You will become properly informed and aware.

You may ask in writing under proper acknowledgment; the establishment to send you an authenticated copy of the said Bond. It may send the authenticated copy or photocopy.

 

At the same time download irrefutable evidence of all tasks assigned to you, performed by you, NO tasks are pending at your end, NO loss is ever caused by you, NO misconduct is ever committed by you…NO SCN was ever issued to you…………

 

Your colleagues can also do so.

All of you can decide to unite hands and agree to stand by each other’s side.

Elders of your family, unions, well wishers, counsels can help you in advising for all of these.

Remain amiable and gentle.

Kumar Doab (FIN)     15 December 2017

IT/ITeS companies in future may also ask to sign Bond/service agreement……………with clauses on NDA,NC,IPR, Trade Secrets, Confidentiality etc etc some of which can be penultimate and enforceable…..

Avoid employment of such terms and also ensure that you keep copies of ll docs and evidences that can help you.

At the same time avoid Non Compliance of clauses/agreements that are signed/accepted by you.

 

Generically speaking: If establishment has not provided you with some extra ordinary benefits and/or spent anything on you/your training that provided you with addition in qualification and/or some extra ordinary skills then said Bond/agreement…whatever it is may be unconscionable/unreasonable/unenforceable/void…

 

Rest you may show the said Bond/agreement…whatever it is, alongwith all other docs as already posted and any other relevant document, to a very able senior Local counsel specializing in such/Labor/service matters for a considered opinion…

 

Kumar Doab (FIN)     15 December 2017

Since you (and probably all other employees) want to separate without any blot on you and without paying the liquidated damages and with clean relieving, you may post relevant information for discussion.

You may no post names/logo/addresses/email id’s/photos/phone numbers etc etc 

Kumar Doab (FIN)     15 December 2017

 

 

While posting such queries employee should post basic information!

What is this establishment; Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

Does offer/appointment letter/contract of employment state that notice pay in lieu of notice period is not accepted?

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Does the establishment have its appraisal system? Do you have copy of signed appraisal forms, matrix, KRA’s, performance date? How was your performance?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

 

Saajid   16 December 2017

I would like to clarify that my father did not sign on the bond. I was made to sign the bond on the day I joined this company i.e 24/04/2017. He was not even present there to be consented. I am working here in Hyderabad and my father is employed in Maharashtra. I am working as Customer support executive. And Sir can you please clarify what does permanent shut up mode means.

Kumar Doab (FIN)     17 December 2017

As already posted in that case; your father is not a signatory, consenting party.... and is not liable.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register