Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Devendra (Software enigineer)     03 March 2013

Service bond problem

I signed a service agreement for 2 years, which says if I leave the company before completion of 2 years I will have to pay 2 Lacs. But my Manager stopped my promotion projecting false performance report to HR to stop my Bonus and Salary Increments, but My Team Lead who is my direct supervisor do not support this false performance report. Now, I wish to get rid of this bond so that I can look out for better oppotunities. Is there any way ?. because this is being worst than slavery.

 

In some of the blogs I have read that these bonds are One-sided & illegal.now how can I know about this ?



Learning

 1 Replies

Kumar Doab (FIN)     03 March 2013

You are in which state and what is your company: a commercial or industrial establishment? In such situations employee should consult elders in the family, competent and experienced well wishers, lawyer/law firm and proceed under guidance and expert advice.

Employment is not marriage. Employers do not marry employees. Hence separation should cause no emotional burden. But employee should watch his steps carefully.

In such situations employee should not burden and stress him and should focus on firming up next venture and separating without any adverse affect.

Be smart.

You have posted that:

--“But my Manager stopped my promotion projecting false performance report to HR to stop my Bonus and Salary Increments”

Has the HR supplied you any communication and confirmation on it?

‘but My Team Lead who is my direct supervisor do not support this false performance report.”

The appraisal/performance report is prepared jointly by the employee, reporting authority, final appraisal authority.

Do you have the copy? First of all obtain the copy and performance matrix, and performance data.

Since your team lead is not inclined to budge obtain copy forwarded by him and demand copy which is finally received by HR from Manager.

If HR does not supply the copy escalate to good offices of appointing authority, MD, Chairman, Company Secretary, in writing and let the good offices supply it to you.

Majority of the companies are methodical and keep policies on all procedures in circulation and knowledge domain of the employee: e.g. HR portal, employee portal, HR policies, performance appraisal policy……….Obtain these and relate the points and remarks given to you with the policy and then escalate.

Since the Manager is vindictive  ignore and avoid routing through him.

Check the registration certificate of the company displayed at notice board/reception/entrance and find out if this manager is declared as “manager” or “occupier”?

Check your appointment letter and see if it is written that you shall be getting annual increments/performance bonus as per performance appraisal.

Check the policy on Bonus and Salary Increments, download and keep a copy. Take help of your TL.

If you give up your rights you shall continue to keep on giving up.

Therefore you may approach good offices in writing under acknowledgment with a copy to you. Thus you may be able to use it at appropriate time in appropriate forum.

Running away from situation shall be no solution.

Courts/law of land/enactments also acknowledges that money and earnings of the employee are fruit of his hard labor and employer earn profits because employee toils for the employer.

If HR has communicated that no bonus/salary increments shall be payable to you then you have a reason/right to demand copy of your appraisal.

Service conditions are regulated by standing orders of the company, appointment letter, statue…..

Standing orders are applicable to IT companies in many states. If standing orders are not framed and certified, model standing orders shall apply. Standing orders should be displayed on notice board, and certified copy should be supplied to employee on demand of employee against a nominal payment of say Rs.10/

Apply to good offices for supplying you a certified copy of standing orders.

--“Now, I wish to get rid of this bond so that I can look out for better oppotunities.”

“I signed a service agreement for 2 years, which says if I leave the company before completion of 2 years I will have to pay 2 Lacs.”

Has the company provided any specialized training which would grant you highly extraordinary skills and your qualification?

What is the ground for creating bond?

It would be better to show the bond to a competent and experienced labor consultant/service lawyer specializing in such cases, and proceed under expert advice of your lawyer.

You may attach the copies of bond, appointment letter, in this thread. However you may erase the names etc to maintain confidentiality.

--“Is there any way ?. because this is being worst than slavery.

In some of the blogs I have read that these bonds are One-sided & illegal. now how can I know about this ?

Try and understand why the unscrupulous employers craft such bond that employees feel enslaved? The answer seems to be as simple as that as already expressed by you: to enslave the employee. This would check attrition. Employee shall be working hard and won’t complain on anything, won’t agitate say for OT…

There are publications to suggest that companies won’t mind increasing the period of bond….

A employee under bond is drilled to believe that he is bonded to employer and in case he tries to separate he shall be troubled: adverse comments in relieving letter/reference check, blockades in FNF settlement, FNF dues, performance pay, variable pay, attestation of PF forms, disbursement of gratuity, legal notice shall be issued, court case shall be filed, stinkers shall be sent by email etc to next employer…..

You would know more as you are in the Industry.  

The question arises why and how long an employee would continue to be such ordeal and torment. The answer seems to be as already expressed by you: as long as employee wants.

 

First of all strike an opportunity with good company with good HR practices offering you a better position and remuneration (take home: guaranteed amounts not variables). Narrate to them in writing even if by email that the current employer may not issue acceptance of resignation/service certificate/relieving letter/FNF statement-settlement/last salary slip and you can not provide these until current employer supplies it to you and you can provide only the copy of notice of resignation, proof of dispatch by redg. post, POD ( obtain from PO), and if company is willing you can join.

Submit notice of resignation in writing under acknowledgment, to current employer with notice period/effective date of resignation/last day in office clearly written in it, serve notice period, handover the charge/company property and obtain proper acknowledgment. This should not be difficult as you seem to be in good terms with your TL.

Submit reminders for supplying you to supply you the acknowledgment of notice of resignation, acceptance of notice (not resignation), work experience/service certificate/relieving letter, correct FNF statement, payment of FNF dues by bank DD only, Form 16 as per correct FNF statement, attested copies of PF forms for transfer of PF etc…..by your last day in office.

On last day submit final resignation quoting reference of notice of resignation and subsequent reminders and demand acceptance and other docs to be supplied by redg. post only.

Your next employer should support you.

You may find the attachments useful.

Valuable advice of learned experts/members is sought.


Attached File : 293096059 model%20standing%20orders.doc, 293096059 417759075 validity of employment bonds.pdf downloaded: 194 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register