Devendra (Software enigineer) 05 October 2013

Security amount return refused by organisation

I joined an organisation as a fresher Software engineer in the year Aug, 2011. I was asked to pay 50,000 Rs as security money at the time of joining, and I was provided a letter stating that this amount will be returned as “Retention Bonus” after successfully completing 18 months with the organisation. But there was a clause in the letter that this amount will be returned - only if my performance continuously meets their expectations and completing 18 months with the organisation.

I joined despite of these clauses and after 18 months I got to hear that this will not paid to me as they have not found my performance as per their expectations. Now I have left that organisation and joined new organisation. Now I am seeking opinions on this situation.

Now, there arise many questions:

1. Can an organisation keep their employees money for 18 months, and not pay back keeping performance clauses. How legal is it.

On the other hand, unfortunately, I do not have enough finance to fight case against these massive organisations which are obviously paying huge compensation to their lawyers.

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Kumar Doab (FIN) 05 October 2013

>> The question arises “Why should an apply pay advance or security to an employer or submit original certificates” for getting a job………………….???

>> Another question arises that “Why the employees do not consult elders in the family, competent and experienced well wishers, lawyer/law firm, trade union leaders………………….” before signing on the dotted line.

Everyone understands that it is better to consult in advance than to repent later.

>> Another question arises that why the employees do not unite and become member of trade unions whereas everyone knows that if employees are united employers won’t succeed to step on the toes of employees.

>> Another question arises that why an employee should hesitate to approach lawyer/law firm, lawful authority, court of law even if employer is surrounded by his battery of fancy lawyers…………………………

Everyone knows that a lawyer is not lawful authority or court.

The lawyer engaged by employer would render legal advise to employer on matters placed before him……………….

The writ that runs in our republic is of law and court of law and not of employer or his lawyer.

If something is illegal or unlawful it shall remain illegal and unlawful even if employer is surrounded by a thousand lawyers.

As per limited understanding from your post on the face of it the action of the company seems to be bad.

The HO/redg. office of the company and you are located in which state?

What was your designation and nature of duties?

Were you appointed as ‘Trainee’ under some training programme vide standing orders of the management? If yes management is ought to have its standing orders which should have been extended to your designation and should have been displayed at a conspicuous place/notice board and a certified copy should be supplied against a nominal charge say Rs.10/-

Or you may obtain a copy from certifying officer (DLC) in o/o Labor Commissioner at location of Redg office/HO of the company against a set fee.

The Standing Order Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies. Section 2 (e) (iv)…………..

The collection of the amounts may be violative of the standing orders applicable to the company.

Or you were appointed as an ‘Apprentice’ under Apprenticeship Act?

If the performance was dissatisfactory company could have terminated the contract/employment.

Did you cause any loss to company that company has declined to refund and has squared off the amount as liquidated damages?

Did you sign acceptance of FNF statement and have you received service certificate, relieving letter?

Did the company ever issue stinkers, letters, emails, notice, show cause notice on performance?

You may show the job advertisement, job application, interview call letter, selection letter, offer letter, standing orders applicable to the company (certified or model) appointment letter, service agreement, letter issued by company asking to deposit security of Rs.50000/ and receipt issued by company for it, letter declining to refund the amount citing performance issues, performance appraisal showing performance,

Target Vs Performance criteria and actual performance, any contract signed by you with company, and any other record………… etc to your labor consultant/service lawyer……………….and proceed under the expert advise of your lawyer.

The lawyer that has seen your entire docs and has analyzed your inputs can advise you the best.

If you are confidant that you can resolve by applying goodwill, rapport, exceptional levels of persuasion, persistence, negotiation, reasoning, flexibility, adaptive skills……………..you may give it a try. However transact in writing and build record. Based on the reply of the company you may proceed further.

Employee can approach:

>> Lawyer/Law firm: The legal notice from lawyer can drill sense into the heads.

>> Trade Unions, employee’s group/union/IC/Guild…………………..

>> O/o Labor Commissioner: labor Inspector………..

>> Inspector under Shops and Commercial Establishments Act of the State…………

>> Inspector under Payment of Wages Act ( Applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm)

2. Definitions………3*[(vi) "wages" means………………..(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

There are employees groups and unions of employees in IT/ITeS/BPO sector. These groups have succeeded in many matters. They may help you and your collective efforts may fetch you some relief.

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