Aniket 30 November 2017

service agreement as consultant on Rs. 100 stamp paper

Is services agreement on Rs. 100 stamp paper legal and binding? I recently joined a company and signed services agreement on a stamp paper of Rs. 100 where I have been referred to as a CONSULTANT and NOT AS AN EMPLOYEE OF COMPANY. But the points of the agreement are all in favor of the employer. The MINIMUM lock in period is of 5 years!! In case I am terminated by the company on disciplinary or performance ground or if I resign before the lock in period, I have to pay the salary of six months (Rs. Six Lakhs!!). The notice period is also of six months if I want to resign and if the notice period is before compelting lock in period, then again six months salary, in addition to any other losses incurred by the company, is payable to company by the employee. I am currently performing duties at the company and doing work which is actually the full time work of two employees with separate expertise. But in bond the common expertise of two fields is mentioned as my duty!! I do not find any point in the agreement which is in favor of the employee except payment and policy for increments. In addition, I am prohibited, as per the agreement, to undertake any paid or otherwise assignments during the period of the agreement and if I want then written permission from management has to be taken. I was also made to submit an undated cheque worth six months salary as security deposit or token of trust with a clause of encashment in case of breach of service agreement. I have given stop payment order for the cheque to bank. Can it be covered under negotiable instruments act if stop payment is made? Please guide if such agreements are legal and valid in India. In addition, I signed agreement in one city and the other party might have signed it in other city. The space for signatures of the witnesses (two witnesses) was there on the agreement but only I signed the agreement and it was later sent to Mumbai for further signatures of the MD of the company. Please help. I am under tremendous pressure. I also do not have copy of the agreement. No training of any type is provided by company. I am being extremely exhausted at the end of day of 8 hours work......... I never experienced this earlier. This is my first time signing the SERVICE AGREEMENT. Please guide....... please.

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 30 November 2017

See these in your service agreement.

Billing Structure, Late payment, Interim charge caps, Special work allowed etc. terms must be clearly in your service agreement.

Kumar Doab (FIN) 30 November 2017

Generically speaking; by signing the said agreement employee/consultant has given the employer/establishment to claim as per narration in the said agreement…………i.e. (6+6 month notice pay) + losses as claimed by establishment etc etc and also seek recourse thru criminal liability of cheque bounce cases…

Kumar Doab (FIN) 30 November 2017

The employee has erred by not consulting elders of the family/competent and experienced well wishers/seasoned employee’s-trade union leaders/a very able senior counsel of unshakable repute and integrity specializing in such/service matters and having successful track record having before signing on dotted line.

The employee has erred by not asking the other party to sign the very moment employee signed.

The employee has erred by not asking to supply the copy signed by others involved, from establishment.

The employee has erred by not keeping the copy of the document signed by employee.

The said service agreement/bond was crafted in lieu of what extra ordinary benefit to employee at the cost of employer e.g; some certified course/training that would add some qualification/extra ordinary skill to employee?

What is such involvement of employee that would cost loss to employer?

Has any situation that would lead to loss or actual loss been explained by employer/establishment?

Kumar Doab (FIN) 30 November 2017

The term ‘Consultant’ might have been used for employee.

A person designated as consultant might be employee.

The limited narration posted by you hint to employer-employee relationship.

Has the employee actually resigned and communicated to employer before and after instructing the bank for stop payment?

If NO training or some extra ordinary benefit was provided by employer/establishment to employee/consultant then the said agreement/bond might be unconscionable/unreasonable/unenforceable/void……..

Either the employee may resolve the matter amicably in his favor with employer/establishment with his skills…… and put it on permanent shut up mode..

Or with help of elders of the family/competent and experienced well wishers/seasoned employee’s-trade union leaders/a very able senior counsel of unshakable repute and integrity specializing in such/service matters and having successful track record…………. and put it on permanent shut up mode..

Or with help of senior officials say of dept. of Labor

Or thru court of law….

The employee may build some irrefutable written record to approach appropriate forum if the need be at appropriate time……….