anand (appl) 22 April 2013

Job contract -employee rights

Hello Seniors,
I received terms and conditions of a job contract as following:

Some of the important points you must keep in mind while applying for an opportunity are given below. If accepted:
1. You will be engaged on an independent contract with a minimum contract period of service of 2 years
2. A security deposit equal to 1 month's payment shall be recovered and retained for due performance of the contract by you, to be released only on completion of the contracted period.
3. Depending on the responsibilities and roles assigned, an additional bond sum may be sought from you for due performance under the contract. In this case, the bond sum shall be payable from you on demand, should you fail to fulfill your obligations under the contract.
4. Your remuneration will always be dependent and linked to your performance and suitable metrics for measurement of the same will be laid down. Periodic reviews of your progress and performance will be undertaken and informed to you.
5. Your monthly payment under the contract shall be lump-sum and all inclusive. TDS shall be deducted as applicable.
6. You will be required to obtain / produce your own medical and accident insurance cover and maintain the same at all times.

Kindly suggest if such type of contracts are legal or not? And if I accept this what legal action can I seek in future?

Thanks

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2 Replies

Kumar Doab (FIN) 23 April 2013

The company has notified you on the brief T&C of the contract if the offing.

The detailed descripttion of the clauses posted by you may be even worse.

This is detrimental to the interest of the employee. Employee should prefer to forego such offers and should not term such offers as “OPPORTUNITIES”.

The offer is contractual for 2 years and you shall need to be there for TWO YEARS or company may claim losses caused by you in addition to notice period/pay, bond money.

It is not clear for the bond money you have to pledge some FD or what are the documents and Sureties Company shall want from you.

It is not clear what else company shall be incorporating in the bond it shall craft for you; e.g. Liquidated damages, Non Compete, Non solicitation, Non Discloser,……….

Protection of Confidential Information under Indian IPR laws………….

The question arises would the company agree to insert clauses on similar clauses or covenants if it violates the agreement, becomes unreasonable, and unworthy of being employed with, or agree to pay salary for period it want for non compete etc……

If you are not desperate, avoid such agreements.

Some employees are made to face criminal complaints.

You may go thru another thread initiated by an employee at;

https://www.lawyersclubindia.com/forum/Breach-of-contract-79411.asp#.UXZ5K6KAqWM

Rest is up to you.

Kindly show the copy of the T&C of the job contract posted by you, and final agreement/bond to be signed by you to elders in the family, competent and experienced well wishers, consultant in labor law/service matters specializing in such cases, understand the merits, before you sign the bond.

If you find the merits and you are convinced you can handle such agreements, still you may give it a second thought.

Rest is up to you.

Valuable advice of learned experts/members is sought.