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Breaking of service bond

Page no : 3

Bhumika Bhardwaj (Engineer-Sales & Support)     06 June 2012

Dear Sir,


I have recently left my company in which I was having 3 years bond failing to complete which I have to pay 2 Lac to the company.

I have signed the bond thinking that the company will see my efforts & will give me good increement, but even after 2 years & working more tha the working hours without any incentive, I did not get good increement.

Finally I got placed in a good reputed company & I told that company about my previous employer bond.

They told that if your previous employer is not ready to give you the relieving letter, you can join us.

Now I have completed 15 days in the present company. But my previous employer keep on sending me mails that If I will not pay bond amount of 2 lac, they will send the legal notice to my surety as well as to my current company.


I am fed up from daily mails of my previous employer.

For your information, I want to make it clear that many of the emplyees in bond period have left the company giving some reasons of medical leave etc..but when I resigned saying that i have got good opportunity, then they started harrasing me for bond amount. Also I want to inform you that I have signed bond with the company which is a joint venture. But that joint venture is now broken & now my previous employer is a single entity.

My previous employer is now ready with the legal notice.

Please find the attached bond agreement signed up between me & my company(previous employer).

Regards,

Kumar Doab (FIN)     07 June 2012

Please intiate a new thread.The bond is not attached.

1 Like

tanushree (.....)     12 June 2012

I am presently working with a co-operative organization as a trainee from the past 8 months. The appointment that I have signed says that the candidate has to serve the organization for a minimum period of 3 years and has to produce a service bond of Rs. 1 Lakh. The organization hasnt made me sign a bond till date and now that I have got an opportunity to go for higher studies from a reputed institute I am planning to leave the job. On having a word with the admin regarding this they said that producing the bond was the candidate's responsibility and if I left the job they'll recover the bond amount. No bond till date has been signed by me, only the appointment letter is signed. Wat can be the possible consequences of resigning in such case?? Can they sue me on this?

raj singhal (officer)     23 July 2012

Dear Sir,

Need you guidance over below mentioned situation.

1.Presently serving in Govt PSU Insurance as an Officer and under Probation(has executed a bond to serve for 4yrs).

2. applied for Staff Selection Commission Combined Graduate level examination before joining the PSU but at the time of interview informed the company about the interview and got the NOC that they have no objection in him appearing for the interview.

3. Now finally got the offer of appointment in Bureau of police Research & Development, Ministry of Home Affairs, Govt of India (Cental Govt Job).

4. applying for remaining service bond transfer.

5. Should  BPRD, ministry of Home Affairs accept the bond if the present employer is ready to transfer the bond? If yes on what grounds as they are unaware of any such situtation of accepting/honouring such bonds. What Circular should we produce before them to convince for this purpose?

6. ready to give a notorized 100 Rs./- Stamp paper Undertaking that will be serving the Cental Govt Organization for the remaining service bond period.

7. difficulty in convincing the Bureau of Police Research & Development for honouring the said undertaking/bond. How to convince them for giving this that ther are ready to accept the bond / honor the said bond?

8. Is DPE guidelines as per link given below have some relevance over this?

Enforcement/transfer of bond in respect of employees of Public Enterprises who leave the services of one Undertaking to join another Undertaking/ Government. (DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004)

your precious guidance is required on urgent basis.

 

 

Thanks & Regards

Raj Singhal


(Guest)

The Indian Contract Act, 1872, stipulates that an agreement, which restrains anyone from carrying on a lawful profession, or trade , is void to that extent vide Section 27. Agreement in restraint of trade or profession is defined as the one in which a party agrees with any other party to restrict his liberty in the present or the future to carry on a specified trade or profession with other persons not parties to the contract without the express permission of the latter party in such a manner as he chooses. Providing for restraint on employment in the employment contracts is therefore contrary to the above provisions of the Act.No employee can be forcefully employed against his will,  merely because he has signed a contract with the employer.

Sakthivel (unemployed)     30 August 2012

Dear Sir,

   Simillar in my case. I signed a Agreement for 3 years with a private UPS company for " Testing Engineer" post. I knew its a very much of hardwares kind of a job. I worked for 6 months and due to several problems i quit the company without any prior notice. Now, They sent me a letter with a subject "Warning letter" and asked me submit my original certificates and appear to job in 48 hours. I replied them through a letter saying im sick and i need 3 months bed rest and i cant come now. Now, I got another letter saying "Final Warning Letter". what shall i de?

1. Risk of Electric shock in the workplace and got several times.

2.I joined as a Asst.Testing Engineer and my senior forwarded all the work to me which he wasnt able to do alone.

3.I am the only one doing all testing works and if i finish my works then i have start others work like packing ..so on..

4.They pressured me to work, Mentally torturing, and if i get electric shock or something no doctors there..i have to wind up band aid and everything myself.

5.I feared to work der and i just quit. They mentioned in offer to provide original certificates and i joined on 6th Feb 2012 and i quit on 30th july , i got my first warning letter on 10th aug 2012 and i replied in 2 days.I got  the 2nd letter on 28th aug.

I dont know what to do :-( Plz help.. I dont have the bond copy cz i had to sign it in the office itself.. 

Kumar Doab (FIN)     30 August 2012

Sakthivel:

It is felt that you are making a mistake by replying to the letters of your company on your own. Looking into the details posted by you let a competent and experienced labor consultant/service lawyer draft and structure your reply to suit you in the long run.

What is the descripttion of job in advertisement, offer letter and appointment letter?

What are the safety standards, measures ensured by the company for the safety of employee? Has the company a safety policy in place? If yes is it circulated and supplied to you? Have you been adhering to the policy to avoid accident and loss?

Have you ever reported the shocks and accidents, including life threatening ones and no onsite medical care to your line management/HR/promoters/appointing authority etc and is it on record? If yes what was the response of the company?  

Have you ever placed your gentle dissent to passing on of all work by the superiors to you mentioning that you were to assist and not to perform those tasks alone?

 

You have posted that:”:

--- They sent me a letter with a subject "Warning letter" and asked me submit my original certificates and appear to job in 48 hours.”

By which right and for what purpose, company has demanded for original certificates to be deposited? Did the company demand to show originals for OSV before issuing appointment letter and did you provide attested copies? If yes why the originals have to be deposited? Has the company demanded the originals to be deposited earlier also? If yes does the company mean to keep the originals in its custody? If yes it is unethical.

The work conditions created by employer are deplorable however have you ever protested on record?

--- I am the only one doing all testing works and if i finish my works then i have start others work like packing ..so on..

Is packing your job? Did you ever placed your gentle dissent on record that you are asked to do mean jobs ?

Did you submit copy of bed rest advice by your doctor and more importantly do you have it along with any diagnostic report like X ray, lab report etc?

Did you quit in writing i.e. by submitting resignation? Did you mention the word notice and reason of resignation in resignation letter?

You are liable to tender notice pay.

It is felt that you should approach a competent and experienced labor consultant/service lawyer, give inputs in person and let your lawyer draft your reply which you should submit under acknowledgment.

You may confirm by applying your resources whether Industrial Employment standing orders are applicable to your industry and does the company have certified standing orders in place and ahs the company extended its standing orders to your designation?

 

In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court. Designation alone does not decide employee is a workman or not.

Employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm before acting in haste.

Valuable advice of learned experts/members is sought.

 

1 Like

Sakthivel (unemployed)     31 August 2012

Dear Mr.Kumar,

     Thanks first of all.

Descripttion of Job: Testing Engineer, High energy division, Manufacturing.

Training Period: Almost 45 days of training, that is completely irrelevent to my job. I never saw a high energy machine(as said above) in my training period. All i  was doing is sitting in a dumped AC room and some low  energy   machine training.

Safety policy    : As per my knowledge, The safety policy is only in paper and one first aid box. with cotton , bandaid, pain spray and dettol.

Superiors : I have had only one Senior testing engineer and he requested for a assistant and there i joined. But since i joined just work procedure was taught to me and nothing about the machines. I saw those machines first when i went there to join after my training. He started to relax , all work were on my shoulders and i couldnt bare it. I have got 3 times malaria and i had told him i cant work harder and he didnt bother. He forced me to work, indirectly black mailing, saying " you come here to work not to rest" ..

Other works: When i finish my works i was forced to do Finishing ( Installing doors, final touching, installing displays, Packing, Sealing, Pusing and pulling mahcines, Connecting and disconnecting batteries in lot..and the place i work has no proper ventilation and always i sweat.

Original Certiicates : Since i attended interview , they were insisting me to provide original certificates and 3 years of service agreement ( for all engineers same formalities). I havent provide any of my certificates and now in "warning letter" they said """ *Warning Letter*, *Poduce your original and attested certificates Degree, 10th, 12th*,*The com-pany keeps certificates in their custody*, *your absence has burdened other employees*, Appear to job and provide reasone for absence in written manner* ,* Or severe legal action will be taken against you*. 

No I knew the work conditions were deplorable and people were arrogant. but never protested against and i felt my superiors had the strong hand and i couldnt make a issue over it.

Is packing my job : The worst part. I told senior many times , I myself have lots of works and i finish it on time or early let me take some break. Never i do have. If packing guys take leave or if orders are in queue or i finish my work quickly i must jump in. Office ends at 5.30 and if i leave to Restroom at 5.15 to clean up myself and catch office van, my senior says " this 15 min you should have finished this work ? "" ..I told him many times that this is not my work ang reply was "if people are not there you are suppose to do this" and he was never polite to me.

Health Records: I  was not well , to be frank that was not the reason i quit. i quit because of the reasons above. I have my blood test records that was taken durin my employment  when i got malaria couple of times. and i am going to that plant monday and talk to them to end this issue. is it good to go on ? I just absconded. I have not given any resignation or health records to them. but i think i have to get health records , bed rest certificates to them..I ll pay the notice pay.

Its great talking to you. Thank you very much. 

Sakthivel.C

sakthishock@gmail.com 

Kumar Doab (FIN)     01 September 2012

--*Poduce your original and attested certificates Degree, 10th, 12th*,*The com-pany keeps certificates in their custody*.

You can decline to leave originals in custody and agree to provide attested copies and show originals and take them back then and there, on the spot.

If you have been absent without any advance information and approved leave you owe an explanation.

--- *your absence has burdened other employees*

If you have been sick you could have applied for sick leave. Company has to have arrangement in case an employee is sick.

You have posted that in your company there is a culture that bosses leave everything including their own work to subordinates.  

siddharth (Executive Dierctor)     24 February 2013

I joined one of the engineering college (self-financed, run by trust, affiliated to Govt university and approved by AICTE) on 3rd of Oct 2001 as an ad-hoc lecturer, and got permanent post on 1st of Feb. 2003. On September 2003.

 I went for further study on the basis of study leave approved by institute for the two years for my master of engineering. I have been compelled to sign bond for the same and the bond period was 5 years and some penalty amount. At that time I opposed to sign it but as Master course is compulsory for me and hence I had to sign the bond, which was changed drastically with my case only in comparison to my seniors who did masters on the same condition.

After coming back from the master course I joined the institute and worked for another 3 and half years with full involvement. During this time again to progress further I joined external basis Ph.D with NOC from institute. Suddenly after six month again the management of the institute gave me in writing to give another bond of 7 years for Ph.D course. I denied as already with their approval only I started Ph.D. They started to threaten me and hence I left institute by giving three months notice time resignation.  Albeit they have not given me salary of this period and when I asked for the same they said it is taken against the bond. Now after that they have filed a case against me in civil court claiming the bond amount ( salary of 2 years + interest+ 5 lakhs penalty).

Few facts are

1.       As per the University rules for study leave ( ordinance and statutes) maximum time period of bond is three years so can my management take bod higher than that? Can they are having power to change the rules of service matter?

2.       They have also not given service book of any employee and when we demanded they denied. So whom to complain about this?

3.       What will be my next step as per your guidelines?

4.       My advocate is not having this much knowledge of service mater so is it possible to meet you to discuss further?

5.       What about my salary for the three months which was not given to me and shown in my Form-16. I am having proof that salary not deposited in my account.

Kumar Doab (FIN)     25 February 2013

Kindly always start a new thread.

You have posted that:

--“As per the University rules for study leave ( ordinance and statutes) maximum time period of bond is three years so can my management take bod higher than that?”

Do you have the certified copies of such rules and has any individual commanding authority on rules has opined that theses rules are applicable in your case.

Your lawyer may opine that the bond was in violation to the guidelines/rules/statue and hence void to that extent.

Did the management sponsored the course fee/stay etc and thus did it ever justify the additional 2 years in bond?

--“During this time again to progress further I joined external basis Ph.D with NOC from institute.”

Suddenly after six month again the management of the institute gave me in writing to give another bond of 7 years for Ph.D course.

I denied as already with their approval only I started Ph.D. They started to threaten me and hence I left institute by giving three months notice time resignation.

Your lawyer may opine that you were left with no alternative but to give up your employment and source of livelihood.

Both he courses shall not just add to your qualifications, but shall be to the benefit of institution which shall claim it has highly qualified faculty to attract business, revenue, profits, and to student to whom you shall be able to impart better knowledge and education.

--“ I denied as already with their approval only I started Ph.D.”

“They started to threaten me”

“Albeit they have not given me salary of this period”

“ and when I asked for the same they said it is taken against the bond.”

Have you submitted any representation in writing to this effect under acknowledgment?

Has the management stated in appointment letter signed by you that it can deduct bond amount from your wages? Have you signed any private agreement with management allowing them to deduct amounts other than statutory deductions from your wages?

Has the management stated the reasons in writing?

--“ I left institute by giving three months notice time resignation.”

Has the management supplied you the acceptance of your resignation, handing over of the charge, company property, FNF statement showing recovery?

Has the management supplied any demand, notice, legal notice before accepting your resignation?

--“Can they are having power to change the rules of service matter?”

Service conditions are stated in standing orders/service rules/appointment letter.

Obtain certified copy of standing orders/service rules, and relate with appointment letter and contention of the management.

Service condition stated in standing orders/service rules can not be negated to employee in appointment letter.

Employer is duty bound to comply with the applicable service rules, statue, and enactments.

 

--“ Now after that they have filed a case against me in civil court claiming the bond amount ( salary of 2 years + interest+ 5 lakhs penalty).”

One option is that you can negotiate with management as suitable to you and management can with draw the case.

If the case is contested the court shall finally decide the quantum of amounts if any.

You may approach a competent and experienced labor consultant/service lawyer specializing in such matters and well versed with univ. rules, with all records, documents collected/obtained/possessed by you, give inputs in person and spend some quality time with your lawyer, understand the merits, and proceed under expert advice of your lawyer.

Your lawyer may opine that he shall demand the service rules, univ. rules, and statues, to be produced by management in court. However you are under stress and hence you should strive to collect the docs which can fetch you relief.

Your lawyer shall decide the citations etc to be quoted. If your lawyer advices to settle the matter out of court with management you may proceed as deemed fit.

--“ They have also not given service book of any employee and when we demanded they denied.’

They are at fault and answerable.

--“ What about my salary for the three months which was not given to me and shown in my Form-16.” “I am having proof that salary not deposited in my account.”

Has the company supplied you Form-16?

Has the company supplied the salary slip of all 3 months pf notice and previous months of service to you?

Payment of Wages Act Sec 13A the salary slip should be signed by employee (confirming correctness of wages paid) and kept in record by employer for 3 years.

If this salary is collected/ deducted as deduction/penalty it should be reflected under head deduction/penalty and amounts earned by you under Salary should be reduced by this amount, and Form 16 should state the correct amount paid to you ( post deduction).

If company has shown this amount as payment of salary in Form16 without effecting the payment to you it is wrong.

You can lodge a complaint with jurisdictional CIT-TDS where company files return and where you file return.

Kindly obtain opinion from your CA/Income Tax Advocate and proceed under their expert counsel and as deemed fit.

If acceptable you may attach the copies of bond, appointment letter, notices, and court case etc, University rules for study leave.. in this thread. Kindly erase the names etc to maintain confidentiality.

Di d you try by meeting the Vice Chancellor on this matter and some one who commands exceptional level on univ. rules, matters e.g. Union Leader, personnel in admin, personnel dept etc…

Did you peruse thru RTI to obtain docs, rules which can prove that management is flouting the norms? You can achieve some handle on management with your efforts and this shall add to your defense as well.

Let your lawyer’s opinion be the final opinion on points discussed above.

--You may also go thru SE act applicable to your state e.g; SE Act Delhi:

(5)  “commercial establishment” means………. educational or other institutions run for private gain,

2. Definitions:

(7)  “employee” means a person wholly or principally employed, whether directly or

otherwise, and whether for wages (payable on permanent, periodical, contract, piece-rate or commission basis)

(The SE Act act does not indiscriminate between workman or executive and the employee may not be necessarily be a workman to claim relief.)

(8)     “employer” means the owner…………….means the manager, agent or representative of such owner in the said business;

20.  DEDUCTIONS WHICH MAY BE MADE FROM WAGES.

21.  CLAIMS RELATING TO WAGES30.    NOTICE OF DISMISSAL:

COMMENTS

(a)     Applicability of section 30:

In the absence of any standing orders or any contract between the employer and the contesting respondent containing any particular terms or conditions, the conditions of service of the employee relating to his employment in an establishment at Delhi are covered by section 30(1) of Delhi Shops and Establishments Act, 1954

(b) Notice or wages in lieu thereof under section 30—When to be given?

A plain reading of section 30 of the Act would make it clear that whereas the notice of one month under sub-section (1) is for the benefit of the employee, the notice under sub- section (2) is for the benefit of the employer.

(Implying if employer is keeping long notice period and if notice is initiated by employee it is deemed to be in the interest/benefit/favorable to employer and not employee, and thus employee can cite it.)

(Any clause which is in violation of the SE act may be claimed as void to that extent.)

33.RECORDS.

(d) Can an Inspector require an employer to produce the  record in his office for inspection?

33.    INSPECTION OF REGISTERS AND CALLING FOR INFORMATION

41.    WILFULLY MAKING FALSE ENTRIES

42.    DETERMINATION OF EMPLOYER FOR THE PURPOSE OF THIS ACT.

-- THE PAYMENT OF WAGES ACT, 1936

13A. Maintenance of registers and records.

5*[13A. Maintenance of registers and records.-(1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed.

15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

Some employees by way of their proximity to employer/promoters/owners, sensitive info, position, access to influential and reputed personalities achieve some kind of handle on company. If you have a handle on company you may apply it and obtain payment of your dues.

--In the meantime kindly go thru the attachments.

Valuable advice of learned experts/members is sought.


Attached File : 297655514 delhi shops & establishments act, 1954.pdf, 297655514 417759075 validity of employment bonds.pdf, 297655514 background paper.pdf downloaded: 296 times

Kumar Doab (FIN)     25 February 2013

Attached:


Attached File : 297655514 payment of wages act 1936.pdf downloaded: 168 times

Kumar Doab (FIN)     26 February 2013

You are at which location.

If you wish to avail the services of LCI lawyer you can conduct search at:

https://www.lawyersclubindia.com/lawyers_search/#.USxD4EpMe8A

Your near and dear ones can also guide to you a competent and experienced labor consultant/service lawyer.

kuldeep singh (engineer)     10 September 2013

Dear sir,

i signed a service bond in a private company for three years and INR 2 lacs.

company has promiss to me we will provide to you the training in abroad. so that we bonding with you.

but company has not given any training or other expension on me. because when i joined that comapny i was more then 5 years experiance. 

i leave that company after 15 months.

as per trem i paid 3 months notic period amount. but company suit a caseon me on behave on broken the service bond.

i tried to withdrawal to my EPF but company is not want,

after taken the notice period amount company is not giving me my brake-up of notice period deduction.

i am frastated.

sir, please suggest me.

m kya kru?

Thanks

kuldeep singh

8882825675

Kumar Doab (FIN)     10 September 2013

@Kuldeep Singh,

Kindly always start a new thread.

You may find the attachments and information posted in this thread useful.

You have posted that:

-------“but company has not given any training or other expension on me. “

Thus company has not given anything in lieu of which it has expected you to sign the bond.

Therefore company may not succeed.

-------“ as per trem i paid 3 months notic period amount.”

Do you have the proof and receipt?

Has the company stated the receipt of notice pay from you in FNF statement and reduced the FNF amounts?

 

-------“ but company suit a caseon me on behave on broken the service bond.’

Approach a competent and experienced labor consultant/service lawyer with copies of all of your docs.

You should be represented by a lawyer specializing in such cases, in court for the suit……………..

 

--------“ i tried to withdrawal to my EPF but company is not want,”

Amounts held in PF a/c of the member are not with company and are managed by EPFO. This amount can not be attached even by decree of court.

Whom you have submitted the PF withdrawal forms? Do you have proof of dispatch and proof of delivery?

If company has declined to attest the PF forms it is offence.

Company can not decline to attest even if it has files some suit against you.

The concerned personnel in HR should submit the PF forms to concerned office of EPFO in 5 days and should supply the acknowledgment issued by EPFO for member ( you) to member (you) by effective modes of communication.

You may visit the nearest office of RPFC, lodge a compliant by letter with copies of proof of dispatch and proof of delivery of PF forms and copy/narration of any other communication/representation you have made to the company, and ask the RPFC to depute the PF Inspector to get the forms attested and penalize and punish the HR person and MD of the company.

 

 

 

It shall be appropriate to approach your lawyer. The lawyer that has seen all of your docs can advice you the best. 


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