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rahul (accountant)     23 September 2012

Service bond breaking

 

THIS IS THE BOND AGREEMENT SIGNED by me
IN PROBATION NOW. IS THIS VALID.Can only the training expenses be paid?Is interest @18% against law?please reply as i want to resign.working for 1 and half years now
 
            


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 1 Replies

Kumar Doab (FIN)     23 September 2012

You may appreciate that company shall claim that you have signed the document by your free will. Company as a master can exempt, waive the condition in your case or deny.

If you can get the waiver it shall be the quickest and easiest solution.

From various posts it is felt that many employees are granted waiver/are terminated in case of medical reasons, unavoidable reasons e.g. sickness of family member etc….

You need to build your defense.

Did the company mention in its job advertisement, offer letter, that employee shall have to sign a bond as mentioned by you?

Or the bond was put up before you to sign before the appointment letter was supplied to you after you had left your previous venture and joined this employer? Did any one state that if you sign the bond appointment letter shall be issued?

Or the bond was signed while you were in the mid of your employment?

If dispute is dragged to court of law, courts shall decide as per law of the land.

All companies provide training. However if the training is to enable the employee perform his job without adding any special skill or qualification it may be difficult to succeed with the claim.

In your case your company has raised a ground that you shall be given training at Training Centre and you are being absorbed as junior accounts officer. Did the company train you with a curriculum to enable you to become a CA in 5 years?

If you feel that you are willing to pay actual expenses incurred on you, or bond amount on a prorated basis and company may agree, you may give it a try. You may apply goodwill, rapport you have built and exceptional levels of reasoning, negotiation, persuasion, persistence skills.

Companies usually do not agree as it may become a precedence.

 

It shall be appropriate to approach  a competent and exeprienced labor consultant/service lawyer, well versed with such matters, show all documents and give inputs in person, and let your lawyer evaluate the merits, and suggest appropriate forum if the need be.

In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court. Designation alone does not decide employee is a workman or not.

Confirm if standing orders were applicable to your industry and company and did the company extend these to your designation. If standing orders were applicable and were not formed by your company model standing orders shall apply. The situation expressed by you and bond may be in violation of standing orders of the company.

The standing orders are to be displayed at notice board and should be supplied to employees at nominal charges. You can peruse the RTI route and request the PIO at concerned o/o Labor Commissioner {location: redg office or Corporate Office of the company} to supply you the certified copy of the certified standing orders of the company. Model Standing orders may be posted at Dept. of Labor website of your state.

You may find the attachments useful.

 


Attached File : 924636068 417759075 validity of employment bonds.pdf, 924636068 background paper.pdf downloaded: 144 times

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