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aaaaaaaaaaa (student)     17 April 2013

Contract termination

Sir , I have signed a two year contract with a Company applicable from 18th march 2013. It is clearly written in the appointment letter that our contract period will start after completion of three months training period which will be from June 18.But the company has kept all the original certificates with them. I can see that I am unable to perform as I expected. so Can I leave the job within this training period??? there is one more clause mentioned in the appointment letter - "The agreement is renewable on mutual basis after one year." so can I leave the job after one year if I want???and if i don't leave the job , if they terminate me , is it possible to get another job after this?? please answer me , i am seriously worried. 



 3 Replies

Kumar Doab (FIN)     17 April 2013

 

Employee should consult elders in the family, competent and experienced well wishers, lawyer/ law firm before signing on the dotted line.

It is better to consult in advance than to repent later.

What is this company; a commercial or Industrial Establishment e.g IT/ITES company ……

You are in which state, and HO/redg. office of this company is in which state?

You have posted that:

----“But the company has kept all the original certificates with them. ‘

Why should you join such a company which in addition to getting a one sided contract , sureties, collect original testimonials as collateral?

Has this company provided any acknowledgment of original certificates collected from you?

If NO, you will have to find your own ways and means to collect the receipt/acknowledgment and certificates, and arrange witness.

----“I have signed a two year contract with a Company applicable from 18th march 2013. It is clearly written in the appointment letter that our contract period will start after completion of three months training period which will be from June 18.”

You may count two years after expiry of training period and may have to add notice period also if it is stated in the contract.

The contract is part of appointment letter or it is drafted on stamp paper? Has the company provided you certified copy of the contract?

The training being provided to you is some specialized training which shall provide you some extraordinary skills and would it award you with some certification and qualification or it is some training to familiarize with   products and processes of the company for the benefit of the company?

Are you attending classes only or are you doing same work which a regular employees are doing?

Has the company charged you for this training? What is your designation?

Are you employed by Training Programme under standing orders of the management/apprenticeship Act?

What is being paid to you during training; regular salary or stipend and is the company issuing salary slip, PF number, Group Insurance, Mediclaim, ESIC etc…….

Has the company asked you to fill forms for the registration of the contract by “Apprenticeship Advisor?”

 

----“ I can see that I am unable to perform as I expected. “

Company can terminate you during training itself.

However you should obtain copy of daily attendance record, tasks assigned and done by you, comments appraisal by your officials.

-----“Can I leave the job within this training period???”

Look into the exit clause and penalties described in contract/appointment letter?

 

You may show job advertisement, interview call letter, offer letter, selection letter, appointment letter, contract, receipt of original certificates, training schedule/programme/agenda/attendance/assignments etc  and give inputs in person along with elders in the family and sureties/guarantors who have signed on contract, to a competent and experienced labor consultant/service lawyer, understand the merits and proceed under expert advice of your lawyer.

Companies are known to include clauses in contract that damages are to be paid even if company terminates the service. Company may resort to issuing notice, legal notice and may claim that it has suffered legal injury due to violation of contract, even if it has spent a penny on training………

However company may not succeed, even this contract is crafted just to enslave the employee and coerce and force to prostrate to tantrums of the management and have a salutary effect.

Let the opinion of your lawyer be final on all points discussed in this thread.

In the meantime you may go thru the attachments.

Valuable advice of learned experts/members is sought.

aaaaaaaaaaa (student)     18 April 2013

Sir my company is a IT company. It is a hyderbad based MNC . It has a huge base in middle east. I am in Delhi. Head office hyderbad. International H.O. Dubai. Yes they have provided acknowledgement of taking certificates that these will be given back after two years. And the bond of two years will start after three months training. Contract is a part of appointment letter and no stamp paper used. They have give the contract as part of offer letter in The Company Letter head. And yes they have given copy of the contract paper. I am not attending any such classes. I was made to sit with some product presentations and no extraordinary skill is gained by me by this except some knowledge on product. No the company has not charged me. They are giving me stipend of Rs 14000 fro which 900 rupees is deducted as a part of ESI. No the company has not told me to fill any form for the registration of contract. As of training is concerned I am sitting in office itself and just read through products for first 15 days. And on 1st april we are given a target of 5 lakhs for this quarter. And the contract will be applicable after three months and it will be for 2 yrs. The lines which are used "You have been employed on the terms of TWO years contract which will start once you finish the training period and will be recruited with probation period on regular employment. The agreement is renewable on yearly basis on mutual consent. During this contract period the company with holds the right to terminate the employee with a notice period of one week in probation period and with a notice period of one month after employment confirmation."

 

So my question is Can I leave the job after one year of employment??? or can i have a mutual understanding with them that I will serve for three more months and then they will have to allow me to leave the company??? is it possible???

Kumar Doab (FIN)     18 April 2013

 

You may show the original job advertisement, interview call letter, selection letter (and confirm did the company declare that employee has to sign a lawyer ……

You may check and confirm that if this is FTC (Fixed Term Contract) for 2 years or contract), offer letter, appointment letter, training schedule, contract etc, to a competent and experienced labor consultant/service regular employment?

You have posted that:

----“I am not attending any such classes. I was made to sit with some product presentations and no extraordinary skill is gained by me by this except some knowledge on product.”   “As of training is concerned I am sitting in office itself and just read through products for first 15 days. “

 

The company is not providing any training, thru any Instt. or professional experts. Hence there is no reason and any ground for … keeping original certificates as collateral etc…..

You need to collect and build proof that no training was ever provided and 3 months training period was eye wash. Only s statement by you that no training was ever provided may not become evidence/proof.

If company has not provided any day wise calendar of training to you, you may submit date wise for each day, daily reports mentioning you did self study with product literature, on computer etc………

----“And on 1st april we are given a target of 5 lakhs for this quarter. “

Although the training period is mentioned as 3 months after 15 days self study you are assigned target for this quarter (implying for whole of 3 months which is otherwise for training) like a regular employee and you will be working on your won/assisting the company and seniors for achievement of targets, and fetching revenue and profits for the company.

You are working as a regular employee, and not as trainee.

It is the duty and obligation of company to provide training on products processes to employee without any cost to employee.

Obtain a written proof that company has assigned target to you.

-----“ They are giving me stipend of Rs 14000 fro which 900 rupees is deducted as a part of ESI.’

They are showing remuneration as stipend.

Thus company is befooling the PF authorities, employees, by showing employee as trainee, denying statutory benefits like PF, Gratuity, whereas employees are working as regular employee.

ESIC is applicable to Trainee. Employee’s share is 1.75% (245) Employer’s share is 4.75% (665).

Company seems to be deducting both (900) from your stipend and probably is not adding its share.

----“ my company is a IT company. “

Some states had granted blanket exemption to IT/ITES companies from provisions of Industrial Employment Standing Orders Act, e.g. Karnataka, Maharashtra,

Probably AP and Delhi have not granted it. You may check from Dept. of Labor, DLC in o/o Labor commissioner.

You may go thru Model Standing Orders/Certified standing orders of the company, Shops and Commercial Establishments Act of AP and Delhi.

If your trade/industry is full of such employers then you may understand these, and your rights.

-----Ask for returning the original certificates………

If your engagement is contractual and renewable on mutually agreement then what is the notice period/pay/penalty to be born by you?

Employee can quit employment. Resignation does not require notice or permission.

In a contract one party which breaks the contract has to compensate the other party.

If you can leave with mutual understanding by getting acceptance of resignation, relieving letter, work experience/service certificate, FNF statement, pay slip, NOC etc nothing like it.

Employee should develop rapport, goodwill and apply exceptional levels of persuasion, persistence, negotiation, reasoning skills, build favorable record in writing and retain copies and evidence, and resolve the situation in his/her favor while in employment.

 

 

 


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