Preeti Wadhawan (CS & Legal Manager) 13 August 2009
Dear friends,
Can a company put penal interest clauses like a conveyance policy states that a company will provide bonus for employees communting on their own and not using company transport but this is subject to a condition that they will not leave the organisation for 2 years. If they do so, the amount will be paid back by the employee alongwith interest @12%. Can the company legally claim the amount alongwith interest.
Regards,
Preeti
aruntrivedi (lawyer) 13 August 2009
YES, Company can give vehicle loan under terms and conditions with which each beneficiary is abide and Company can impose penalty on any breach of terms and conditions.
Sridharan Iyengar (Labour Law consultant) 15 August 2009
Two basic principles we have to look in to in this aspect.
ONE- If we call ' Bonus' there should be no other criteria other than the criteria mentioned in the Bonus Act.
TWO - If we recover any fine / penalty from employees, it should be deposited to the concern state's Employees Welfare Fund.
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