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Krishnakumar KA (Manager)     28 June 2012

Is job contract or bond illegal?

Hi, I want to know the legal status of Job contract and Job bond. I am working a company where all employees are working in Job contract where we have to submit our Original academic certificates as a security for two years. If anyone wants to resign that emplyee has to give 2 months salary then only company will relieve and give the original certificates back. Pathetic fact management start torturing the employees after joining, signing the job contract aginst the sweet words what they told in interview. More over in the contract its written that its up to the management to relieve or not during the contract period. I want to know the above mention Job contract is legal or not in India. Somebody told me that bonds are against labour laws hence that is illegal. Kindly let me know about this. Thanks in advance.



Learning

 8 Replies

pervez (adviser)     28 June 2012

Dear, Job contracts are valid in India. Howvere, it depends on what terms have been incorporated. If the terms of the bond is balancing meaning thereby it protects the interest of both employer and employee, it is valid. An unreasonable condition in the bond makes that condition illegal. 

The problem you have posed / explained in unique.. I have not heard of keeping the original certificates with the employer as security.. This is certainly against the principles of equity and justice..... Every human being has right to uplift his status according to his capabilities.. If he wants to rise.. no body can stop... But every thing depends on the necessity... if the job is good and adequate compensation is paid.. no body would like to quit...  In private a organisation these are the common problems ... The big Q is that who will bell the cat.... There are several decisions on this subject i.e. legality / illegality of a service bond and u can find in this website also making search....

regards 

pervez (adviser)     28 June 2012

Dear, Job contracts are valid in India. Howvere, it depends on what terms have been incorporated. If the terms of the bond is balancing meaning thereby it protects the interest of both employer and employee, it is valid. An unreasonable condition in the bond makes that condition illegal. 

The problem you have posed / explained in unique.. I have not heard of keeping the original certificates with the employer as security.. This is certainly against the principles of equity and justice..... Every human being has right to uplift his status according to his capabilities.. If he wants to rise.. no body can stop... But every thing depends on the necessity... if the job is good and adequate compensation is paid.. no body would like to quit...  In private a organisation these are the common problems ... The big Q is that who will bell the cat.... There are several decisions on this subject i.e. legality / illegality of a service bond and u can find in this website also making search....

regards 

Kumar Doab (FIN)     28 June 2012

Has the company demanded original certificates by a letter and mentioned the period during which it shall examine the certificates and return these to employee?

Has the company mentioned in the job contract/bond that original certificates shall be retained for whole period of the job contract/bond and shall be returned only after the completion of bond period...........? Company can ask to provide the copies of testimonials and employee can opt to provide the photocopies, attested copies, notarized copies and show originals. Company can mark OSV on the copies.

Has the employee signed and accepted the conditions by free will? If the employee has not signed and has not left original documents by free will and company has not issued acknowledgment then company has stepped on the toes of employees and its conduct is bad. Employee should stay away from such unscrupulous employers. Employee should consult elders in the family, competent and experienced  well wishers, lawyer/law firm before signing on the dotted line.

Notice pay (2 month's salary as mentioned by you) is applicable if the employee has opted to not to serve the notice period and tender notice pay for shortfall in notice period.

Does the company pay notice pay if an employee is terminated?

Has the company circulated supplied employee rule book, standing orders?

If the company has invested in training that adds to qualification and skill of the employee company can ask for a service agreement/bond. Bond should promote equality and natural justice and should be applicable to both the parties. If company provides training to better the performance of the employee e.g. product training etc company should not indulge in imposing bond.

All of the affected employees may join hands, unite and be witness to each other, and approach a competent and experienced service lawyer and show all documents and give inputs in person. Your lawyer can give precise inputs and guide you to appropriate forum which can be O/o Labor Commissioner, Civil Court.

 

1 Like

Krishnakumar KA (Manager)     05 November 2013

Thanks Kumar and Pervez for the replies. Recently I came to know that they are keeping 20 kg of certificates of ex-employees. Usually what employees to after resignation is sending request to Universities for duplicate certificates.

@Kumar Daob, Every employee needs to submit the Original certificates for two years. Two years is contract period. After two year if the employee wants to continue again s/he has to sign another two years contract. There is an employee working there for more than 10 years in renewed contracts. She is the only employee working for long period. After joining in one week things the behavior of management change from diplomatic to authoritative. That is the main reason employees are leaving before contract period.

In my case I had appointed as Business Development Manager with 25% of travelling. But after joining travelling became 75%. Sometimes continuously in a stretch Kerala to Karnataka to Andhra. They asked me to direct visit houses for sales. Prior to that I was working as Karnataka Regional Head for a College. BDM appointment with this company was also as Regional Head for Kerala segment (base Bangalore). During my Kerala visit I fall down and hospitalized for 10 days. This 10 days gap they assumed that as I am going to resign. Instead of supporting my treatment, they blocked my salary. I had to get close to 15,000 from the reimbursement and 6,000 from incentives. Since these two amounts and one month salary put together would be two months salary, I resigned expecting that they will return certificates. But now they are not giving back certificates asking me to bring business from Kerala! Just want to know these are allowed in India? Karnataka government officials usually known for falling in bribe. So going to labor office may not be a solution.

Kumar Doab (FIN)     06 November 2013

 

Your latest post in this thread is after 1 year. A lot must have transpired in this 1 year.

 

 

 

 

The company has to reimburse the medical treatment for the injuries suffered while on job.

The companies usually provide group/medical insurance that should cover all expenses.

 

Did you inform the company for the accident/injury suffered by you immediately followed by leave application with doctor’s bed rest advice and treatment record?

If yes that should suffice.

 

The company does not and can not have any lien on original educational certificates of the employees.

 

 

The original educational certificates are result of many years of education, are personal property of the employee and employer can not have any lien on it.

 

There are court judgments declaring such tactics of the employer as illegal, unlawful………….e.g;

Dr.S.Rajesh vs The State Of Tamil Nadu

indiankanoon.org/doc/1028571

 

 

You need to have some evidence of the original certificates being held by the company.

If you have willfully submitted the certificates then you need to demand these back in writing under proper acknowledgment. If company does not return the certificates then it gives you a ground to proceed further.

 

The Inspector under Shops and Commercial Establishments Act can enter premises of the company and can check all files, records, forms, formats, registers and can even call these in his/Chief Inspector’s office.

 

If you have reservation about their integrity and prevalent corrupt practices due to bribe you can approach vigilance section, trade unions, labor Commissioner in person, police, lawyer/law firm, court of law………………………

 

In another thread an employee has collected his originals with the help of a police constable, SI………………….

 

https://www.lawyersclubindia.com/forum/Orginal-certificates-submiteed-in-office-88472.asp#.UnngKPuo1oo

 

 

There are many threads with similar queries which you may find relevant e.g;

 

https://www.lawyersclubindia.com/forum/Advice-on-resignation-90642.asp#.Unnhufuo1oo

 

https://www.lawyersclubindia.com/forum/Advice-on-termination-90640.asp#.Unnh1Puo1op

 

 

https://www.lawyersclubindia.com/forum/Settlement-after-resgination-90992.asp#.Unng4Puo1oo

 

 

Navin Khushlani (Audit officer)     31 March 2014

 I am working at Ujjivan Financial services  as audit officer  and company is  related to  Micro finance   i thought before joining there is audit work of accounts audit or offical audit and i am doing CA final bt after join Ujjivan i realized that there is diffrent  audit  work  it's a proess audit  and  work is verfiying to customer that they are our legal customer or not but   i am not inrested  to  do this type of work bt signed the bond on normal A4 size there is decleration that if i left the company before  2 yr they will charge training expensess which are not described. I join this company on 3 feb 2014

                                             Dear sir /Mam  please help that  it are valid or not can i left this job or not without paying any money to company 

Kumar Doab (FIN)     31 March 2014

 

You may show the job advt, job application, interview call letter, selection letter, offer letter, appointment letter (these may show descripttion of job functions, KRA’s etc), bond etc……………………..to a competent and experienced labor consultant/service lawyer well versed with Contract Act and such matters and give inputs in person and proceed after understanding the merits under expert advise of your lawyer.

When was the BOND signed; after issuance of appointment letter and what was the date on it and what date was affixed by you below your signature on BOND?

If the employer has not placed you for the job for which you had applied, negotiated during interview or if you are not interested to be into the function then you can take up with good offices of appointing authority, MD preferably in writing under proper acknowledgment with a copy to you.

If the good offices are unwilling to grant any desired relief then you can proceed further, of course under expert guidance of your lawyer.

The BOND is created by employer in lieu of what extra ordinary favor or expense to be incurred or training to be provided to you?

 

IN the meantime you may find the attachments useful. 


Attached File : 146402298 417759075 validity of employment bonds.pdf, 146402298 background paper.pdf downloaded: 206 times

Krishnakumar KA (Manager)     10 January 2015

Thank you everyone for reply. I am sure the replies will help many employees.


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