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bajrang (none)     16 December 2011

Break service bond

hi everyone,

 

actaually i was left my company due to some person reason without prior information to my manager and HR department.i have 2 years of bond with them which is costof 100000 rs. but m not able to such amount of money for buying out of my bond so thats why i m taking a decision of leave my company because of my family problem.

even i didn't take any releiving and exp letter from them .now, i got a notice from my CTO to that company taking a legal action for me.

i feel horrible and depression now.

 

so ,please suggest me what can i do.

 



Learning

 13 Replies

Yam Raj @ PBI (Social Reformer - www.publicbureauofinvestigation.in)     16 December 2011

You stated due to your family problem you left the company without informing the authority. That means you have created your own fortune in trouble.

 

It is wiseable advice, you write a letter to your company stating your family problem and request them to excuse you. They may do so....

 

Seeking perdon is the best policy to overcome any consequences.

 

thanks,
 

Kumar Doab (FIN)     16 December 2011

You should not abscond.

Narrate your family problem, and health issues if any, in writing under acknowledgment.

Build your record, and patch up with your line management. Rapport with Line management and HR, and their intervention can help all employees to resolve all matters amicably.

Get into the habit of consulting elders in the family, competent and experienced near and dear ones, trained legal mind/lawyer/law firm before taking an action in haste.

If the company proceeds legally, you shall have to contest it.

BINESHKUMAR S (se)     18 December 2011

 

I have been working with an MNC from Jan 19 2009 to Dec 16 2010(Almost 23 months). At the time of joining, I have signed an agreement to stay in that company for 24month,lest I will have to pay 1 Lakh which is signed by my surety. At the time, I left the company, the company didnt insist for that and they relieved me with all the formalities such as relieving letter,Full and settlement letter..etc. However after an year(last week),my surety got a mail from company asking to pay 1 lakh, since i left the company before the bond period and I didnt get any notification so far. I have the below queries, please advice

1.Is it possible to negotiate with the company on the bond amount as there was only one month left?

2.How long will be the bond letter valid,it doest seem to fair for me as they remained calm for an year and after that they are sending letter?

Kumar Doab (FIN)     18 December 2011

The question arises: Did you receive any notice from the company? Since if you do not respond or negotiate company shall contact the surety.

You have served for 23 months in place of 24 months, while you could have served for 24 months.

However you have received FNF, relieving letter, without any demand for amount of bond. Therefore relax.

This seems to be the work of some maverick HR/legal guy who has suddenly risen to try and extort some amount, by sending an email, and prove and justify his presence/salary in the company.

Your surety , may ignore, and if required at all, can very well correspond to the company the employee( you) has left the company after satisfying all terms and conditions of exit process and was awarded FNF, relieving letter, after all a/c were settled, and moreover company has never supplied any notice to the employee.

1 Like

BINESHKUMAR S (se)     18 December 2011

Hi Kumar,

Thanks for your reply,

At that point, i was in a position where I couldnt serve a single day in that company.  I have asked the surety to send a letter to the company listing the facts.

In the correspondance which company has sent to the surety, my contact address is wrong

Do you think, that it is a wise decision for me to contact the company and start negotiating? Also at the time I resigned, I was on bench and company had no intrest in keeping me.

Kumar Doab (FIN)     18 December 2011

We are not aware of the reasons for keeping you on the bench, and what communications were exchanged between you and the company during this period. Did the company level any charges or issued any memo, show cause notice, and did you submit any reply? Was it a forced exit on you and can you prove it?

It could be a strategy of the company to force exit 1 month before the bond period ends.

It could be another strategy of the company to deliberately mention wrong address on the communication sent to your surety. Have you ever given this address to the company? Are you aware of any communication delivered at this address mentioned by company?

All said and done you have gone thru an exit process and company has settled all a/c and issued FNF statement, and relieving letter to you. Relieving letter is issued post all settlements. Based on limited info posted by you, apparently there seems to be no reason for you or your surety to be under stress, and your surety can chose to ignore or reply.

It is believed that company shall file a copy in your personnel file. If you have any apprehensions it shall be better to ask your surety to file a carefully drafted reply and wait for next step of the company.

Even if the company proceeds it shall be a civil matter.

Then you can step in and bring the matter to its logical conclusion.

Do you have the complete performance record with and can you prove that you have generated revenue, profit for the company and thus you may be able to settle the matter in your favor without having to pay anything to the company.

It shall be appropriate to post all details and visit a competent and experienced service lawyer.

BINESHKUMAR S (se)     18 December 2011

 

Thanks again for your reply

It was not a forced exit,but graceful that too completing the required notice period. 

My concern is, the surety who signed my bond is my fiancee and we are getting married next month. We dont want to drag ourselves to a legal battle and I am thinking to hard close this issue by paying a nominal amount. So that it wont be a concern for us in future

Kumar Doab (FIN)     18 December 2011

You are being taken for a ride, by a wicked corporate and its personnel. This wicked personnel is probably aware that you will feel under pressure and come running and pleading to them.

You must not pay them even a penny. If you pay you shall keep on doing so in future as well and for rest of your life. Payment by you shall encourage this unscrupulous employer to extort monies from many other fellow colleagues and citizens.

Your surety (fiancée in your case) may submit a carefully drafted reply in a few lines stating that the person (you) has completed exit process with sufficient notice and company has settled all a/c of the ex. employee and has issued the FNF statement, payment of dues to the employee and relieving letter, hence nothing is due to be settled by the surety. Thus the matter stands closed at the end of the surety. Moreover the surety is not kept in loop while communicating with the employee. Do not worry and do not budge an inch.

 

In place of paying anything to this unscrupulous employer you may visit a competent and experienced service lawyer will records and your lawyer shall take care of everything. You must update your lawyer on the circumstances created by company to force the exit and to keep you on the bench.

 

Pankaj (Area Sales Manager)     16 January 2012

Kumar Sir,

               how a Appointment letter is treated? is it a bond or contract? Kindly reply 

Kumar Doab (FIN)     16 January 2012

In case of a situation specific appointment letter or bond should be got examined form a competent and experienced service lawyer.

Bond; Service agreement between employee and management and may have restrictive clauses e.g. restricting the candidate to work for a specified period as per retention strategy of the company. Breaching of bond may involve payment of a specified amount as per clauses expressed in bond. Non payment may attract civil action but not a criminal action.

Few companies may prepare an appointment letter with bong agreement like condition e.g. candidate is in bond for ….years and during this period a portion of ………….Rs of his salary shall be kept by management and shall be paid after expiry of bond period.

Bond or service agreement may be given as appointment for a fixed period e.g. 1 year after which employed comes to an end.

 

Appointment letter: an official document of offer of appointment on certain terms and conditions and has a mention of designation, probation period, training period, notice period, retirement age, emoluments, CTC etc and employee has rights in concurrence to various labor/service laws of the land. Appointment letter may have conditions like liquidated damages, non disclosure agreement construed as a bond.

Pankaj (Area Sales Manager)     16 January 2012

kumar sir, r u er for how much time? I would like to show you my appointment letter which having that clause. Its not on Non Judicial Paper. Its on company's letter pad only. Should I send you er after getting scanned copies? 

Pankaj (Area Sales Manager)     16 January 2012

sir,

it will take only 5 min.

Kumar Doab (FIN)     16 January 2012

It shall be better if you start a new thread.You may attch the copies with your post.


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