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R5555555555555 (S)     12 April 2018

Company forcing to sign a bond after resignation

Some days back I had resigned from my post Asst sales manager in Chinese subsidiary company due to non ethical behavior of Indian management. They were forcing me to sign a bond that “I can't do job or business in the same field for at least 2 years”, but I refused to sign any type of bond. Before some days back they called me again and told me that “I can do any job or business but I can’t sell their company brand material”. Sir actually there is lots of trader in the Indian market who is importing and selling the same company brand material and my bosses knows these things very well. But they are not allowing me to do this because they knows very well if I will sell their company brand material by purchase through another trader then they will lose their business. That’s the reason they are forcing me to sign a bond. I want to know there is any rule or law that after resignation I can’t sell the company material by purchasing through other source in the market. I have my appointment letter but they have not mention this type of clause there that I have to sign such type of bond after resignation Sir please help me and suggest me this is compulsory to sign such type of bond after resignation because they are telling me if I will refuse to sign the bond they will not clear my gratuity and PF amount.


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 24 Replies

R.Ramachandran (Advocate)     12 April 2018

Once you have resigned, you have no obligation to the company.  The Company cannot ask you to sign a bond now.  If at all they could have got the bond signed by you while you were working with the Company.

They company cannot do anything to you.  Please do not sign any such bond.

 

Kumar Doab (FIN)     12 April 2018

While posting such queries employee should post basic information!

What is this establishment; GOvt, private, Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

 

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Does the establishment have its appraisal system? Do you have copy of signed appraisal forms, matrix, KRA’s, performance date? How was your performance?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

 

Has employer or IT’ attorney’s in line management/HR/Legal cell/Lawyer/Law firm etc whoever has been forcing you, asked you in writing? Do you have any irrefutable evidence (audio/visual/witnessed/minuted etc ) of any forced demands/coercion/intimidation/threats made to you?

Do you have access to internal portal/shared portal where all private rules/policies of the company ae placed for employee to access thru employee log in?

Do you have the copies of all such rules/policies that are mentioned in appointment letter or later with date/time of IT’s publication/uploading?

 

 

You may revert to relevant points.

Name of company etc is not required so don’t post names etc .

Kumar Doab (FIN)     12 April 2018

 

You (employee) are under NO obligation to sign on any clause/agreement/bond!

You are at liberty to decline to accept.

IT is time to download all private rules/policies and everything that matter and ensure that NO data that is legitimately confidential is downloaded by you.

In case you have some company’s laptop ( admin control) /phone ensure that  passwords are intact and there is NO breach and you have the evidence.

This shall be helpful to thwart allegation of any breach/damages.

PF; It is believed that the PF is under EPFO. The funds in PF are hopefully under control EPFO. The establishment is under obligation to attest the PF forms ( say within 5days of receipt) for withdrawal/transfer. If IT declines IT shall make IT susceptible to legal action under civil/consumer/criminal laws. Submit your PF claim under proper acknowledgment and POD.

Your counsels may opine that you can approach APFC/RPFC/Addl CPFC/CPFC of EPFO, pursue RTO route, Lok Adalat, Consumer Forum, civil courts, police……per facts of your matter.

You may simply maintain irrefutable record.

 

Gratuity: Just write under proper acknowledgment to designated official e.g; HR head/designated HR personnel and if required to good offices of appointing authority, MD, CEO……………..that ‘ Notice of Determination of Gratuity’, payment o Gratuity, requisite forms if any be supplied on LWD……….. or you can also write after LWD or after getting acknowledgment and/or acceptance of resignation, reliving docs etc 

If employer dos not tender payment within 30days from LWD then IT has to tender interest @10%pa.

Avoid committing any act leading (alleged) loss that can be established for forfeiture of Gratuity.

Has established obtained (mandatory) insurance of Gratuity from FI say; LIC?

IT might have communicated that IT has taken Group policy. 

If yes the funds in a/c are with Insurer!

In case of any situation that is intntionally created on flimsy grounds sooutions per facts can be possible.

Kumar Doab (FIN)     12 April 2018

In case you are unable to handle on your own; Approach a very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service matters and having successful track record ….. and worth his/her salt …with all record for a considered opinion…

Check at; LOCAL Labor courts/CGIT/O/o Controlling Authority of Gratuity (usually ALC/DLC of appropriate government)/CAT/Scholl-Education tribunal/Civil Courts/HC/SC…..

The seasoned Employee’s/trade union leaders can also represent you…

Any authorized person can represent you for Gratuity.. ( say; your father). If required chose any seasoned personnel of your choice.

 

Rest you may post poitwise reply to all points for further response..and other point that you feel is relevant ..

If you don’t wish to post on any particular point GO VIST and confide in your LOCAL counsels as already suggested above.

Chose your counsel carefully and avoid IT’s, Entities, posors, impostors with unknown firms being flouted as Law Firms ( Actually LIAR’s firms) and posing as Lawyers (( Actually LIAR’s) that loiter at online portals to stalk/allure/fleece/exploit unsuspecting querists…

 

Kumar Doab (FIN)     12 April 2018

In case you are unable to handle on your own; Approach a very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service matters and having successful track record ….. and worth his/her salt …with all record for a considered opinion…

Check at; LOCAL Labor courts/CGIT/O/o Controlling Authority of Gratuity (usually ALC/DLC of appropriate government)/CAT/Scholl-Education tribunal/Civil Courts/HC/SC…..

The seasoned Employee’s/trade union leaders can also represent you…

Any authorized person can represent you for Gratuity.. ( say; your father). If required chose any seasoned personnel of your choice.

 

Rest you may post poitwise reply to all points for further response..and other point that you feel is relevant ..

If you don’t wish to post on any particular point GO VIST and confide in your LOCAL counsels as already suggested above.

Chose your counsel carefully and avoid IT’s, Entities, posors, impostors with unknown firms being flouted as Law Firms ( Actually LIAR’s firms) and posing as Lawyers (( Actually LIAR’s) that loiter at online portals to stalk/allure/fleece/exploit unsuspecting querists…

 

kunal “#unconventional #Aquari   16 April 2018

If you have already resigned, you are no longer liable to the company. If they refuse to clear your gratuity/PF amounts, you may contemplate approaching the labor court for legal remedy.

You may e-mail me at basu_kunal@hotmail.com for any legal queries you might have.

Regards
Advocate Kaybee

R5555555555555 (S)     09 May 2018

thanks sir

R5555555555555 (S)     09 May 2018

thanks sir

R5555555555555 (S)     09 May 2018

Dear Sirs

I had resigned from company on 31.03.2018, but they still not cleared my gratuity payment. Actually 2 customers is not issuing C Form which deal is done by me during during my working period in company. Now company is telling first submit that pending C Forms after that they will clear my Gratuity payment. Please help me what should i do now.

Kumar Doab (FIN)     09 May 2018

Originally posted by : R5555555555555
Some days back I had resigned from my post Asst sales manager in Chinese subsidiary company due to non ethical behavior of Indian management. They were forcing me to sign a bond that “I can't do job or business in the same field for at least 2 years”, but I refused to sign any type of bond. Before some days back they called me again and told me that “I can do any job or business but I can’t sell their company brand material”. Sir actually there is lots of trader in the Indian market who is importing and selling the same company brand material and my bosses knows these things very well. But they are not allowing me to do this because they knows very well if I will sell their company brand material by purchase through another trader then they will lose their business. That’s the reason they are forcing me to sign a bond. I want to know there is any rule or law that after resignation I can’t sell the company material by purchasing through other source in the market. I have my appointment letter but they have not mention this type of clause there that I have to sign such type of bond after resignation Sir please help me and suggest me this is compulsory to sign such type of bond after resignation because they are telling me if I will refuse to sign the bond they will not clear my gratuity and PF amount.

In your 1st post the reason was Bond.

You have not replied to any point pointwise, raised for you to respond.

You should have responded.

Kumar Doab (FIN)     09 May 2018

In your last st post the reason is C form.

Have you submitted the letter as already suggested under proper acknowledgment?

Is company only saying verbally or has declined to pay in writing?

You may even submit FormI under proper acknowledgment.

Pendency of C-form is at customer end is apparently NO reason to forfeit payment of Gratuity.

Gratuity as per Act cannot be avoided and denied verbally BUT can be forfeited per provisions of the Act and not by whims and fancies of any individual in establishment..

The Act also provides for penalty and punishment with jail term to ‘Whoever’ avoids payment of Gratuity.

Refer Sec;9 that is crystal clear and so are the judgments delivered by courts of law.

Kumar Doab (FIN)     09 May 2018

 

There might be many reasons/misconducts in the list/standing orders/rules valid for award of dismissal from service.  

The dismissal per se alone does not render any employee ineligible for the payment of Gratuity.  

The forfeiture of Gratuity is well defined in the Payment of Gratuity Act 1972: Sec4(6)…………    

And before that EVERYTHING…………………..NATURAL JUSTICE, statutory show cause notice, inquiry, opportunity of proper hearing, speaking order EVERYTHING has to be done…………………

 

GO thru;

Payment of Gratuity Act, 1972

Section:4:Payment of Gratuity:

(6) Notwithstanding anything contained in sub-section (1), - (a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused……………………………….

https://clc.gov.in/clc/sites/default/files/PaymentofGratuityAct.pdf

Kumar Doab (FIN)     09 May 2018

 

 

GO thru many of the highly illustrated threads e.g; https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49

 https://www.lawyersclubindia.com/forum/details.asp?mod_id=28768&offset=1

   https://www.lawyersclubindia.com/experts/Gratuity-679811.asp

 https://www.lawyersclubindia.com/forum/gratuity-not-paid-177657.asp

https://www.lawyersclubindia.com/forum/Gratuity-different-weekly-working-days-in-organisation-177741.asp

https://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp

https://www.lawyersclubindia.com/forum/gratuity-not-paid-177657.asp

 

and mentioned links therein and you will find FormI and relevant information!

You shall find the link to threads in which employees resolved matters with their own skills..

You shall also note that many unscrupulous IT’s and entities loiter at online portals to allure and fleece unsuspecting querists and without knowing anything about applicable laws and enactments and procedures..

Many of such IT’s and entities only loiter to find BAKRA/SHIKAR and allure to send legal notice and take FEES and thereafter won’t do anything and rather cannot do anything…..and hence are nothing more than Legal Notice sender…( सिर्फ  कानूनी नोटिस भेजने वाला वकील) 

 

Or employee can take support guidance and help of seasoned employee’s/trade unions…

 

 

If you are unable to handle on your own approach your own very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service matters and having successful track record ….. and worth his/her salt …and discuss in person and even with seasoned employee’s/trade union leaders/PIP and proceed in best of your interest.. 

Check at LOCAL Labor Court/CGIT, Controlling Authority of Gratuity, School-Educational Tribunal, CAT, Civil Courts, HC,SC……..for such counsels..

Kumar Doab (FIN)     09 May 2018

 

Payment of Gratuity is agitated before Controlling Authority of Gratuity.

Avoid getting mislead by misleading advices.

Before; Controlling Authority of Gratuity (at last location where you were located or jurisdictional) you can represent in person or thru ‘Authorized Representative’ ( as provided for in the Act) ……………..

You can chose such representative from seasoned family members, well wishers, employee’s/trade union leaders…………………or a very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service matters and having successful track record ….. and worth his/her salt …

Before you run or rush endeavor to resolve the matter by applying your skills and submitting the letter and FormI as already suggested, of course under proper acknowledgment.

 


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