LIVE Online Course on NDPS by Riva Pocha and Adv. Taraq Sayed. Starting from 24th May. Register Now!!
LAW Courses

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Aashish Vishwakarma (ET)     21 May 2012

Breaking service bond, psu

Hello Sir,

I have recently joined BHEL- PSWR. It's only been 2 and a half months.
Upon joining the company I was told to sign a service bond of 2 lack rupees for the duration of 3 years after the successful completion of 1 year training period.

Soon after joining, I was put in a project site as commissioning engineer.
I realized that work life here is very hectic. Not only I find that work environment is pretty unsafe, I need to work 12-16 years hours daily, and even on Sundays sometimes. No compensation is given for that.

I have recently got an offer for Mtech in IISc, and so I wish to quit my job now.

My question is that, It's only been 2 and half months, and I do not have 2 lack rupees to pay the bond.
I have not been provided any special training on company's expense yet. So, I think that bond should be considered null. Am I correct?

I talked with my HR. He told me that I have to pay the bond amount. Also in my resignation letter I have mentioned that I am leaving for higher studies. So, he told me to mail him scanned copy of offer letter. I have not applied for NOC for applying for IISC. So, should I send them the offer letter? 

This is one golden opportunity. And I do not want to lose it. Please help.

Also my father is a retired person. I do not have any savings.  Please help me out. :(

 

I have attached the bond. 



Learning

 30 Replies

Kumar Doab (FIN)     21 May 2012

 

You have posted tha”tI find that work environment is pretty unsafe, I need to work 12-16 years hours daily, and even on Sundays sometimes. No compensation is given for that.

You should put the above in writing under acknowledgment to good offices of your appointing authority along with evidence may be video recording of the unsafe conditions at workplace, and agitate on the 12-16 hours duty hours along with evidences and orders to perform duty or duties performed on Sunday. The evidences/proofs are to be generated by you. You may need to cajole your superiors to send you email, SMS to work on Sunday/holiday/off days and later put the matter in writing and demand wages/compensatory off. You need to highlight that you are virtually enslaved and establish that employer is unworthy of being employed with..

Attention is drawn to following points in bond:

 

7. That the Trainee shall not participate in labour or political activities or become a member of any

Labour or Political Organisation.

It is difficult to digest that an employee can be restrained to be member of any trade union, employee council, and employee committee. You need to touch this.

8. The expenditure incurred by the Company on account of and in connection with the training of the Trainee shall include the emoluments etc., paid during the training period, the cost of supervision and other items. The decision of the Executive Director/General Manager of the Company or the officer nominated by him shall be final as to the total amount of expenditure incurred by the Company on account of training of the Trainee. However, the total amount recoverable shall not exceed Rupees Two Lakhs.

The stipend paid to you cannot be training expense. No one including trainee/apprentice is employed without wages. Salary of supervisor or in other words supervision should not be levied on trainee. The decision of the competent authority should be at the most proportionate expense if there are actually expenses incurred by the company. And company should in a position to itemise the expense with proof.

13. That if the trainee leaves the services of the Company before the expiry of the stipulated period

of three years after completion of training, he/she shall be liable to pay the expenses incurred by

the Company in connection with his/her training. He/she shall also give three months notice or

pay for the sum equivalent to three months salary in lieu of such notice.

It is felt that there should not be any notice period applicable to trainee.

The above is heartfelt opinion. You may preferably approach a competent and experienced service lawyer with all records and give inputs in person. Your lawyer can structure your representations to build record in your favour and thus benefit you in the long run.

It seems for sure company shall not let you go without fight. However an employee must build rapport , goodwill and apply exceptional levels of persuasion, persistence, negotiation, reasoning skills and resolve the matter in his favour without being  entangled in litigation. If you prepare well you may be able to resolve the matter in your favour without any heartburn on either side.

Valuable advice of learned experts/members is sought.

Aashish Vishwakarma (ET)     21 May 2012

@ Kumar Daob,

 

Thank you sir for your valuable reply.

Do you think that my chances of winning in the legal fight is good?

Also you mentioned I should consult an experienced service lawyer. I have never been involved in any court matters before. I am afraid of the procedure.
Also What would be the fees of lawyer? And what would be the duration of the judgement? 

As I mentioned I am going to pursue Mtech in Bangalore. And I can't afford my studies to get disturbed on regular basis.

Please suggest.

 

Thank you,

Kumar Doab (FIN)     21 May 2012

Kindly consult elders in the family, competent and experienced well wishers, trained legal brain, lawyer/law firm. You may find a competent and experienced service lawyer within your acquintance also or as referred to you by your well wishers.If you and your family is convinced with the merits of your case pointed by your lawyer after looking into your records and inputs, you may firm up the fee etc.Your lawyer may confirm that you need not be present on each date.

The easiest way to avoid discussion, debate, arguement, communication,conflict, litigation is pay the bond amount,and separate.

The other option is build favorable record and keep the record in your personal file,and explore the possibilities of obtaining agreement from competent authority to relieve you by accepting reasonable and proportionate amount acceptable to both the parties.

Whichever way you  separate you must do so by  getting work experience/service certificate, releiving letter etc.

You may explore all options and proceed as deemed fit.

Aashish Vishwakarma (ET)     21 May 2012

"It seems for sure company shall not let you go without fight. However an employee must build rapport , goodwill and apply exceptional levels of persuasion, persistence, negotiation, reasoning skills and resolve the matter in his favour without being  entangled in litigation. If you prepare well you may be able to resolve the matter in your favour without any heartburn on either side."

 

This is very thoughtful advice. I heartily thank you for that. 

My family is not very rich. And I think I should fight for my right. 

 

Currenly I had mentioned request of waiving off the bond in my resignation letter. My HR said that resignation letter cannot be considered valid. 

So I shall be sending unconditional resignation letter tomorrow. And when he gives me notice about bond amount. I shall request him to give itemised list of expenses. 

Before proceeding any further, I shall try requesting higher authorities. 

If that doesn't work out , what do I need to do? File a case against them? 

 

 

My family isn't very rich. My father is afraid of legal activities, so he wants to pay the bond and get over with it. 
 

And I do not know any lawyer. That's why kindly enlighten me that what should be the appropriate fees in case I hire a lawyer. Thank you. 

Kumar Doab (FIN)     21 May 2012

Your father is also right.

You can do lawyer search at this website also.Related lawyers list is given on the bottom of this web page.You can click on the link to the lawyer, enter their profile, and contact them.

Regret do not know any lawyer at your location or fee of the lawyer.You and your lawyer should settle the fee. You can express yourself and your limitations.

It is felt that you may not amend your resignation until or unless adviced by your lawyer.Your lawyer may suggest you the draft if deemed fit.

An employee is within his rights to request the good offices to waive off the notice period/pay.If you have the acnolwedgment and POD of notice of resignation submitted by you, you have served the notice.

But obvious that your HR has communicated verbally to edit yout notice of resignation and supply again.Employee should record such transactions( audio/visual) for use at appropriate time in appropriate forum.

Kindly submit all communications under acknowledgment.Be smart.

Apply your skills to bring the cost down to a proportionate amount acceptable to you.

e.g. if bond amount is 2 Lac spread over a tenure of 4 years i.e. 48 months then for 2.5 months the mathematical cost is Rs. 10417/-

If there is no training ask for some discount pay it as a parting gift.Ask for adjustment in FNF amount only

 

Aashish Vishwakarma (ET)     21 May 2012

I hope to resolve this case without getting into court matters.

My HR has emailed me that such conditional resignation cannot be accepted. 

Should I alter the resignation in such case. 

Once my resignation gets accepted and they issue notice of paying the bond amount, I wish to request senior HR personnel again to waive off or to provide discount in the bond amount. 

Is this a right move?

Aashish Vishwakarma (ET)     22 May 2012

Plus kindly inform me whether it is safe to let company know that I have been selected in IISc for Mtech?

As I haven't taken NOC for applying there from company, neither I have informed in IISc about my present employment. 

Kindly Suggest. 

Kumar Doab (FIN)     22 May 2012

You have already mentioned in your resignation that you are terminating the employment to peruse higher studies.That should suffice, and more details may not be required. Moreover your employer has not demanded details. Regret that can not comment on the issue of NOC. You are not seeking employment elsewhere, and you are expected to adhere to the conditions of contract to separate or as per the waiver granted by your employer. You may obtain copy of certified standing orders, employee rules of your company and rules pertaining to your specific query of seeking NOC if employee has to leave for perusing higher studies. If you leave on terms settled with your employer, there should not be any reason that employer should chase you in your future endeavors. You have posted that: - "My HR has emailed me that such conditional resignation cannot be accepted. " You may explain that you have not submitted conditional resignation, and HR has not pointed out the line which is presumed as condition by them.( You have appealed for waiver and have not added any condition.) -"I wish to request senior HR personnel again to waive off or to provide discount in the bond amount."You may refrain from using the words like discount. This is precisely a legally trained mind can step in and polish your plaint and weave a case to benefit you. You should rather declare in your very first communication that no training has been provided and you have performed tasks like any confirmed employee and have generated revenue for the company. NO supervisor was guiding or coaching you whole day.You were working on your own. Start recording the evidences. Only evidences shall add weight to your claim. Verbal statement may not matter much.

Anjuru Chandra Sekhar (Advocate )     22 May 2012

Dear Ashish,

 

Read the article enclosed.


Attached File : 417759075 validity of employment bonds.pdf downloaded: 557 times

Aashish Vishwakarma (ET)     23 May 2012

@ Kumar Sir,

 

It seems I have made a mistake. Just yesterday, I have issued a revised resignation letter in which I have not mentioned any request or fact that no training has been provided to me.
Now should I immediately send another requesting email to Head-HR, or should I first wait for the notice of the bond amount to be paid. 

I thank you again for your thoughtful answer. But again, my HR has asked about my IISc offer letter over phone call. I think they are suspecting that I am leaving for another job. (I had applied for NOC for appearing in ISRO exam.)
Now my question is should I send copy of my offer letter if they demand it via electronic mail?

At the time of filling the application form for IISc, I had not declared any information about my present employment ( as i hadn't applied for NOC for the same.)
So can the company do any damage to my career by contacting IISc if I send them copy of offer letter? 

@chandrashekhar Sir, thanks for the info. 
 

k packiarajan (Sr. Consultant)     24 May 2012

Dear Sir,

Any specification regarding notice period (for e-g - 30 days) in workmen's appointment as per law?

Aashish Vishwakarma (ET)     24 May 2012

Dear Kumar Sir,

Please have look at the followinf request letter I am going to submit. Kindly suggest any changes or improvement. 

 

 

To Executive Director,

BHEL PSWR,

Sri Mohini Complex,

Kingsway, Nagpur.

 

Date: 24/05/2012

 

Subject: Request for waiver of Bond Amount

 

Dear Sir,

 

With a great reluctance I am informing you that I have submitted my resignation from BHEL PSWR as ET on 22nd May, 2012 in order to purse higher studies.

 

Upon my resignation, I was informed that I will have to submit 2 lakh rupees as bond amount. I am writing this letter to request you to waive of this bond amount because of following reasons.

 

·         I am going for higher studies and not for other job or any other monetary interest.

·         It has only been 3 months of my service, and I do not possess enough savings to pay the bond amount.

·         I come from a middle class family. My father is a retired person and there is no other source of income in my family.

·         I have not undergone though Common Induction Training or any other training.

·         I have performed tasks like any confirmed employee and have generated revenue for the company.

 

Due to above mentioned reasons I request you to kindly waive off the bond amount.

 

I hope my request will be considered sympathetically.

 

Sincerely,

 

 

Aashish Vishwakarma

 

 

Aashish Vishwakarma (ET)     24 May 2012

Dear Sir, Kindly answer... my HR has asked about my IISc offer letter over phone call. I think they are suspecting that I am leaving for another job. (I had applied for NOC for appearing in ISRO exam.) Now my question is should I send copy of my offer letter if they demand it via electronic mail? At the time of filling the application form for IISc, I had not declared any information about my present employment ( as i hadn't applied for NOC for the same.) So can the company do any damage to my career by contacting IISc if I send them copy of offer letter?

Kumar Doab (FIN)     24 May 2012

It is felt that the transaction on phone should be reverted by reply by phone than in writing.

You should add that no supervision for whole day of each work day was provided to you. This is with limited understanding of the matter posted by you. Let your lawyer draft and structure your representations.

You must not haste if your company is calling you on phone. Take your time. better delay by a few days than haste and repent later.

It is reiterated that you should approach a competent and experienced service lawyer with all records and describe yourself in person. You may need more than one sitting. You must not feel that  on line discussion can replace the wisdom and access of lawyer in person. In todays context lawyer is as imp as say a doctor. You would need legal advice now and then.An advice in time can protect you from damage. Please don't confuse visiting a lawyer means filing a court case. In majority of the events it shall be to prevent to be trapped in court case.

The matter being posted by you concerns your future and can entangle you or relieve you from legal traps.

You know your HR,good offices better than anyone. They may be good human beings.They have a rule book to follow and a job to justify. Rule demands you should pay the bond amount. They have to defend the interest of the comapny.

You have to use and apply your judgement.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Recent Topics


View More

Related Threads


Loading
Start a New Discussion Unreplied Threads



Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query