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Chandra shekar (Engineer)     29 April 2014

Bond for 1 year for travel

Dear Sir

I have signed a bond with my company for onsite travel


The service agreement says --"Employee agrees to serve a period of 1 year (one year) from the date of signing this agreement. In the event of termination of employment of the Employee by resignation or for any reason whatsoever before completion of 1 year (one year), irrespective of whether the Employee has actually travelled on deputation or secondment; the Employee confirms the understanding that the Employer will incur substantial loss on this account. The Employee shall pay and reimburse to the Employer Rs 200,000/- (Rupees two lakhs only) towards the full costs of applying for the work permit; obtaining the work permits and other miscellaneous costs incurred by the Employer"

But I have a question as this agreement was made for travel purpose.
If VISA expires before the bond period and the employee has not travelled. Is this bond applicable?
Kindly let me know



Learning

 3 Replies

Kumar Doab (FIN)     29 April 2014

 

What is this establishment; commercial, industrial, small enterprise?

You and redg. Office of the establishment is located in which state?

What is the line of business of the company e.g. Telecom, IT etc?

What is your designation and nature of duties?

 

You have posted that:

---“full costs of applying for the work permit; obtaining the work permits and other miscellaneous costs incurred by the Employer"

irrespective of whether the Employee has actually travelled on deputation or secondment

 

This might be construed by employer as sufficient acceptance by employee for claiming the liquidated damages.

Whether employee has travelled or not  is also mentioned here.

 

You have signed such contract by your free will.

Did you apply for such assignment i.e. deputation, secondment?

Were you chosen for this assignment by employer?

The communications exchanged for this purpose before and after the assignment/contract should be examined.

 

 

---“irrespective of whether the Employee has actually travelled on deputation or secondment

Deputation ( and Transfer)  is part of service conditions and it is without any cost to employee.

Secondment might be construed as deputation to another establishment………………and since secondment is inserted by employer in contract drafted by employer…………………..it can be construed as service condition…………….. without any cost to employee.

 

Service conditions are stated not just in appointment letter, contract of employment, service rules and regulations/Hr policy reference of which is made in appointment letter, but also in standing orders (certified/model) applicable to the establishment and extended to the designation of employee.

 

Standing orders (certified/model) is instrument of law/statue and shall prevail upon (supersede, overrule) any private agreement that employer has signed with employee e.g. appointment letter, contract of employment………………..

Any service condition that is contrary to the standing orders shall not survive.

Employer himself is held responsible for faithful observance of standing orders.

The standing orders should be displayed by employer at a conspicuous place in establishment say near entrance/on notice board, circulated………………. and a certified copy should be supplied to employee on demand even if against a nominal charge say Rs.10/. Employee or anyone can obtain certified copy from CO (Certifying Officer that may be DLC in o/o Labor Commissioner at location of Redg. Office of the company) against a set nominal fee say Rs3/page…………..

 

Service conditions in standing orders are duly negotiated by representatives of employees (employee’s unions, Trade Unions) and employer along with CO before certification.

Hence Employees should form unions, become members of employees unions and affiliate with Trade Unions.

If standing orders are not certified, Model Standing Orders shall apply.

You may go thru Sec13-18.

While drafting and approving standing orders the certifying Officer shall not allow any clause/service condition that does not confirm to line and spirit of Model Standing Orders.

 

Designation alone does not decided workforce shall be covered as ‘Workman’ as in ID Act, as ‘Employee’ as in (Name of the state) Shops and Commercial Establishments Act or not!!

Employees can form ‘Work Committees’ the President of which is on rotation from employees, and employer and has equal number of members from employees.

 

WORKS COMMITTEE IS AN AUTHORITY

The Industrial Disputes Act, 1947:

CHAPTER II: AUTHORITIES UNDER THIS ACT

3. Works Committee

 

If standing orders do not provide for any charges from employee for cost of deputation/secondment , employer can not charge……………………  

The contract drafted by employer might be violative of standing orders.

 

--- The question arises after signing the agreement you did not take up assignment and did not travel due to reasons ……………………………….caused by you or employer?  

 

 You should consult a competent and experienced labor consultant/service lawyer well versed with such matters in person with all docs on record.

 

 

 

 

Chandra shekar (Engineer)     01 May 2014

Dear Sir

 

Please find the answers for your quesions--

What is this establishment; commercial, industrial, small enterprise?

its an establishment

You and redg. Office of the establishment is located in which state?

karnataka

What is the line of business of the company e.g. Telecom, IT etc?

IT

What is your designation and nature of duties?

Techincal Lead

 

Did you apply for such assignment i.e. deputation, secondment?

No..Company chose me to this assignment

Were you chosen for this assignment by employer?

Yes

--- The question arises after signing the agreement you did not take up assignment and did not travel due to reasons ……………………………….caused by you or employer? 

The assignment was not taken up due to  EMPLOYER due to lack of oppurtunity in said business

Also the bond is signed on March -11, 2014.

Visa is granted from May-2014 till July 29th -2014

If Visa expires and travel has not happened. IS this bond applicable?

Also will the 1 year bond include notice period of 3 months ?


Kumar Doab (FIN)     04 May 2014

 

To the query :

What is this establishment; commercial, industrial, small enterprise?

You have replied;

its an establishment

 

It is not the proper feedback. Your company should be not just an establishment, but either of a commercial establishment, industrial establishment, or a small enterprise……………….

 

The employees that are not members of employees unions, trade unions are usually not properly informed. The employees unions, trade unions can negotiate service conditions. Employee should negotiate service conditions.

 

 

You may find many threads relevant e.g.;

 

https://www.lawyersclubindia.com/forum/Employer-not-giving-acceptance-to-the-resignation-101590.asp#.U2CQrUeBmXU

 

IT/ITeS employees have their unions and trade unions like CITU, AITUC, INTUC,BMS, ShivSena have embraced them e.g;

 

 

https://www.itecentre.co.in/

https://ithiworld.wikispaces.com/News+Update

IT/BPO Voice of India | Facebook

UNITES Professionals

www.unitespro.org

https://www.wbitsa.org/

www.itpfindia.org/

https://itnitesunion.wordpress.com/author/itnitesunion/

 

 

Shiv Mahiti Ani Tantradyan Sena(Shiv IT SENA)

mankar.janardan@gmail.com


https://www.shivsena.org

 

 

 

https://www.amrc.org.hk/node/1088         CBPOP

https://www.freepatentsonline.com/article/Indian-Journal-Industrial-Relations/185430721.html

https://bpo.knowledgehills.com/Directory/BPO-Jobs/CBPOP-Centre-for-BPO-Professionals.aspx

 

 

https://www.dnaindia.com/mumbai/report-shiv-sena-forms-first-union-in-information-technology-sector-1465435

 

 

 

From other feedback it is guessed that your company is a commercial establishment

 

 

It has been clarified by you that employer has approached you for this assignment and hence why should you bear any cost?

If employer is not sending you due to less revenue in the project for him why should you bear any cost?

The assignment seems to      be for the benefit of employer (not employee) hence secondment or deputation whatever be the terminology being applied for it by employer should justify the demand of employer that employee should bear the cost. Employee has to do the work for employer and employer should pay the wages.

 It is also felt that you do not want to go abroad for this assignment even if it comes your way up to June 2014.

 

Your lawyer may opine that you as per your designation/nature of duties should be covered as ‘Workman’ as in ID Act, ‘Employee’ as in shops and Commercial Establishments Act.  


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