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Sasi (NA)     18 August 2012

Two bonds parallely

I am working i an private orgination where i joined as a trainee under a bond of 3 years and 4 lakhs stating that training will be given and after one year confirmation will be provided. after 10 months they were sending US for 10 days and asked me 2 sign another bond which would be effective after returning back from US for a period of 3 years and 5 lakhs which i didnt agree to sign and aske them to close my 1st bond so that i will sign the 2nd one. they didnt agree for that and they some how forced me sign by saying that if i sign the bond they would give me nice hike after completing 1 year during my confirmation, if i didnt sign they said they wouldnt involve in any projects here after, since this is my very starting of my career i was afraid and signed it. after completing my 1 year of service i asked for the confirmation and hike, they stsrted saying that company sales are down so i have to wait for few days. i waited for 7 months before i got my confirmation with very poor hike and they didnt pay any arrears. now they are asking me again to go to US and have to sign another bond which will be a third bond applicabe in parallel. i couldnt understand what to do.... where as on the other hand i am getting very good offers where i can earn double of what they are paying currently. i already has offers in hand and wanted my releaving letter. could any one advice me how to slove my problem..... i have very less time left fot joining the new company......



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 5 Replies

Kumar Doab (FIN)     18 August 2012

Employee should always consult elders in the family, competent and experienced well wishers {lawyer/firm in a situation as mentioned by you to understand legal implications and traps} before signing on the dotted line in haste.

Still the question arises why an employee should get subdued and sign the document which can become catch in the neck and entangle the employee in serious issues which could have been avoided by applying presence of mind and some negotiating skills.

In today’s environment employee must develop rapport, goodwill, and exceptional levels of reasoning, persuasion, persistence, negotiation, skills.

The documents/bonds/agreements are crafted by master craftsmen to suit the interest of employer and the personnel in HR/Line management coerce/force/lure the employee to sign on the document without letting the employee understand and consult anyone.

Still there shall always be lacunae to help the employee.

You may show all the bonds, documents, appointment letter, signed by you and give inputs in person to a competent and experienced service lawyer/labor consultant.

Let us assume that your CTC is ……12 Lacs /annum, and you have been given to understand that you shall have to tender payment of Rs.4+5=9 Lacs if you violate the term so bond. It is not clear the period mentioned in also 3+3=6 years.

You have posted that:

--“ i joined as a trainee under a bond of 3 years and 4 lakhs stating that training will be given and after one year confirmation will be provided.” Apparently no training was provided which could have added your qualification or skill for period of 10 months before you agreed to visit for 10 days. Hence company has not incurred any expenses.

The first document signed by you could be a service agreement.

Company shall have to prove that it incurred expense of Rs. 5 Lacs on you and this amount stretched to 3 or 6 years is justified to fetch returns to company.

You shall need to clarify the exposure given to you in US was actually a training or not?

Did the company enroll you in any institution and provided any certification and breakup of expenses incurred on you?

You should collect all data of performance and revenues generated by you for company. You must look for ways and means to transfer, forward, or obtain printouts of all relevant records. Once you are in conflict company shall not let you have any record.

Your lawyer may be in a position to help you wriggle out of situation. You should evaluate all pros and cons before you sign on third bond. Try and peruse with company to let you take soft copy of the bond with you and consult elders in family {do not mention a lawyer}.

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. Companies burn extra energy to convince employee that he/she is not a workman as many of the enactments favor employee and limit the choice to employer. However designation alone does not decide employee is a workman or not.

You have posted that “i waited for 7 months before i got my confirmation with very poor hike and they didnt pay any arrears.”

If the employer has not paid any arrears it has become unworthy of being employed with.

Have you submitted any representations to good offices of your appointing authority, MD, Chairman, Company Secretary etc. If is felt that you should and narrate and cover all representations including in person, on phone, by email etc and mention date, name of the officials etc and build some record in your favor with a copy to you. Such email can be sent from personal email id and can be forwarded to personal email id or by letter under proper acknowledgement. Let your elders in the family, competent and experienced well wishers lawyer/firm structure and draft your representations to suit you in the long run. The good offices can waive of notice period/bond/service agreement if they wish. You may try.

If your is a IT/ITES company then please note that some states have granted exemption to such companies from provisions of Industrial Employment Standing Orders Act.

At the same state like Karnataka is contemplating to end the exemptions. SE Act is applicable to such companies.

You may find the attachments useful.

 

 


Attached File : 977680802 karnataka shops and commercial establishment act.pdf, 977680802 exemption se act west bengal.pdf, 977680802 karntaka now applicability%20of%20standing%20order%20to%20it%20industries.doc downloaded: 135 times

Kumar Doab (FIN)     18 August 2012

In which state you are working?

You may find the attachments useful.

 

 


Attached File : 977680802 417759075 validity of employment bonds.pdf, 977680802 background paper.pdf downloaded: 104 times

Sasi (NA)     18 August 2012

Dear Kumar Doab thanks for your response....

My CTC was only 4 lacs per annum during my training period and the total bond period is 3 years 10 months, during the 1st 10 months they didnt give me any training, and the 1st document signed by me is a service aggrement and During my visit to US is for 10 days they didnt provide me any training in  actual they hardly spent 2 lacs on my trip.  they did not enroll me in any institution and provided me any certification and breakup of expenses incurred on me.

I am not from It industry... i am working in delhi..

Can you please suggest me a best way to get my releaving letter... so that iw ill start working in that way...

Kumar Doab (FIN)     18 August 2012

--"during the 1st 10 months they didnt give me any training,"

What is the ground and reason for service agreement, in that case?

--"During my visit to US is for 10 days they didnt provide me any training in  actual they hardly spent 2 lacs on my trip."

What were your daily activities in US? Do you any record of daily attendance and activities to establish that no training was provided to you? Were you made to undertake any job work for which company received any payments?

If company sent you on tour to a location that should not be treated as a ground as reason for bond, whatever be the expense of tour.

Try and obtain copy of certified standing orders of the company and confirm if these are applicable to your position. These should be displayed on notice board and can be obtained against nominal fee from company. If certified standing orders are not applicable and your industry is within preview of standing orders model standing orders shall apply.  The practice of service agreement/bond may be against certified standing orders. Obtain copy of HR policy, service rules, employee rule book and these should be circulated to employees and kept in knowledge domain of the employee and may be available at HR/employee page of employee portal. You are within your rights to obtain a copy from concerned official/HR personnel of the company or good offices of the company are under obligation to supply you a copy.

You may show all the bonds, documents, appointment letter, signed by you and give inputs in person to a competent and experienced service lawyer/labor consultant and proceed under expert advice of your lawyer. Your lawyer can evaluate the merits and structure and draft representations to suit you in the long run and can also evaluate you fall within the category of workman or not. In Delhi you can access expert service lawyers/labor consultants. As you have signed the service agreement/bond company may not relieve you easily however if the need be the record and evidence can rescue you.

If suitable you may attach copies of bonds, documents, appointment letter in this thread. You may erase the names etc to maintain the confidentiality.

Delhi Govt. on standing orders, Delhi SE Act is enclosed.

 

 

 


Attached File : 977719114 delhi shops & establishments act, 1954.pdf, 977719114 draft standing orders of m 164.doc downloaded: 129 times

Kumar Doab (FIN)     18 August 2012

As per Industrial Employment Standing Orders Act Certificate of Service is to be provided.


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