Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Abhay Kumar (Software Engineer)     27 February 2013

Service agreement in it firm

Hi,


Curretly I am working in a IT firm. While joining I had to sign a service agreement for 2 years from the date of joining (Feb 20, 2012) worth 2 lacs in case if I break the agreement. There are few reasons for which I want to leave my current job and opt another offer that I got recently. First, I was hired as a Software Engineer but I was forced to work in the customer support for 2 months with one of the my company's client. Secondly, after few months I had to work in another Operations role inspite of my profile as a Software Engineer.

In my offer letter it was mentioned that my training period is for 6 months and 6 month is the probation period. But when I received my appointment letter, my training and probation periods were mentioned Apr-12 to Sep-12 and Oct-12 to Mar-13 respectively. I did not received any kind of training from my company.

I am getting frustrated because my current role as support guy will not help me in my career. So I started looking for oppurtunities and now I have a good offer from a MNC.


I have few concerns which I would like to share:

1) Can I break the bond in these terms? If yes, then whether I will have to pay 2 lac rupees to get my relieving/experience letter?

2) Will I have to face any legal action from my company in this situation?

Need help on this.

 

Regards,

Abhay Kumar

 

 



Learning

 2 Replies

Advocate Rohit (Advocate)     27 February 2013

no issue you may leave the company if you get good opportunity. The company shall serve you legal notice  asking for Rs. 2 lakhs. but don't worry it can be taken care off.

You may call on the below number, if required.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Kumar Doab (FIN)     01 March 2013

You have posted that:

--“I did not received any kind of training from my company.’

Then what is the ground for creating a service agreement of 2 years?

--“First, I was hired as a Software Engineer but I was forced to work in the customer support for 2 months with one of the my company's client. Secondly, after few months I had to work in another Operations role inspite of my profile as a Software Engineer.

In my offer letter it was mentioned that my training period is for 6 months and 6 month is the probation period. But when I received my appointment letter, my training and probation periods were mentioned Apr-12 to Sep-12 and Oct-12 to Mar-13 respectively.‘

Did you ever submit any representation to good offices of your appointing authority for deviating from its committement’s to you: e.g. training period, probation period?

Did you submit any representation for putting in dept/service which for which you did not apply, and for which you are not appointed and conclude that you would like to be in a discipline which is in line with your qualification, experience, future goals, career….?

Company may claim that you have signed the agreement by your free will and you are under contractual obligation and may sit on proper relieving. It may initiate proceedings against you.

However it shall have to prove its contentions in court of law.

As future employers may insist on relieving letter you may have to agitate and approach your lawyer, lawful authority, court of law.

If company is under IESO Act and has extended to your designation/position you may refer to these. If certified standing orders are not framed, model standing orders shall apply.

Some states had granted exemption to IT companies from IESO Act some states had not.Some states have ended this exemption now and IESO Act shall be applicable again e.g. Karnataka.

Model Standing Orders:

13.  Termination of employment

16.  Certificate on termination of service.--Every permanent  workman shall be entitled to a service certificate at the time of his dismissal, discharge or retirement from service.

 

 


[1] Subs by ibid

 

NOTE. - There is a provision under  this  Act for issuing a service certificate at the time of  dismissal, discharge or retirement and every person is entitled to take such certificate.

 

 17.         Liability of 17[employer].--The [1][employer] of the establishment shall personally be held responsible for the proper and faithful observance of the standing orders.

 


[1] Subs by ibid

18.  Exhibition of standing orders.--A copy of these orders in English and in Hindi shall be pasted at [1][*****] and on a notice-board maintained at or near the main entrance to the establishment and shall be kept in a legible condition.

 

SE Act is applicable to IT companies. You may refer to SE Act applicable to your state.  

e.g. SE Act Delhi:

30.  NOTICE OF DISMISSAL

Approach a competent and experienced service lawyer/labor consultant with copies of all docs, give inputs in person, spend quality time and proceed under expert advice of your lawyer. Don’t pay any amounts, until finally advised by your lawyer.

Your lawyer may opine that you fall within the category of workman and ID can be invoked, and agreement is in violation of the standing orders. Designation alone does not decide employee is a workman or not.

The company may yield to legal notice of your lawyer, demand notice by you thru your lawyer, during conciliation proceedings, Notice by Wages Inspector, Inspector under SE act…..or you may have to approach civil court.

You may go thru the attachments and other threads initiated by employees e.g;

https://www.lawyersclubindia.com/forum/Is-service-bond-is-legal-74011.asp#.USt-AkpMe8A

https://www.lawyersclubindia.com/forum/Joining-the-client-organization-75245.asp.

Valuable advice of learned experts/members is sought.

 


Attached File : 79136933 417759075 validity of employment bonds.pdf downloaded: 83 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register