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aisha ahmed sharfi (advocate)     23 May 2011

lawyers advice wanted

PLEASE GIVE YOUR OPINION REGARDING THIS-

A, A PESON WAS IN THE SERVICES OF COAL INDIA LIMITED, AS A WAGE BOUNG EMPLOYEE. HE HAD TAKEN A HOME LOAN FOR WHICH HIS HOUSE WAS MORTAGED. HE WANTED A RELEASE ORDER AS HE WANTED TO JOIN SOMEWHERE ELSE. BUT HE WAS NOT RELEASED WITHIN THE JOINING DATE. NOW AS HIS HOUSE WAS ALREADY MORTAGED LET US SUPPOSE HE DIED DURING THE SERVICE PERIOD, THE COMPANY WOULD HAVE RECOVERED IT FROM THE HOUSE BY AUCTION. NOTHING AS SUCH WAS MENTIONED IN THE TERMS OF EMPLOYMENT. IT WAS JUST MENTIONED THAT HE HAD TO GIVE THREE MONTHS NOTICE OR SALRY ON LEAVING THE SERVICES OF THE COMPANY. WHAT IS THE APPROPRIATE REMEDY.



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 6 Replies

Suchitra. S (Advocate)     23 May 2011

I think he had to give three months notice before he left the Company as per terms. The Comapany cannot recover the compensation from the mortgaged house of the worker. It may file a suit against him for breach of contract and ask for compensation due from him.

Hirdayanath M Kamble (Service)     23 May 2011

Hi

 i persume that on account of professional conduct he should have given a notice period as stipulated in the terms of agreement  of employment or compensated for the notice period. regarding the house it will be another matter for the recovery as stipulated in the agreement,

aisha ahmed sharfi (advocate)     23 May 2011

the fact is the company did not release him citing his dues. it said that it is ready to release him if the new company which he is joining is ready to give an undertaking that it will act as guarantor and pay the amount, that too after the joining date was over. this is a ciause of action

Suchitra. S (Advocate)     23 May 2011

Aisha ji, tell me if the worker has taken loan from the Company he was working for? If yes, then the Company's stand is correct. 

aisha ahmed sharfi (advocate)     26 May 2011

the thing is he had taken a loan when he had asked for release. as per his terms of office he had to give 3 months notice or salary in lieu of it. nothing in the contract was mentioned as to detaining him for the rest of the period over which the loan remained unpaid. supposing that even if coal india has a policy that it will not release u if you have a loan pending until you pay your debts it did not come up with any such statement as to pay this amount if you want to be released. in fact it was ready to release the person if the company which he was going to was ready to sign an undertaking as to his dues but this was done after the joining date was over.

please provide a remedy

aisha ahmed sharfi (advocate)     26 May 2011

he did give a notice but was still not released


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