shasa01
Hi All,
I am in a troubled situation and i need some help. I cleared IBPS po-Iv and got allotted Bank Of India. Currently I am working in Infosys and have mentioned the same in the form. I have this bond service of one year as well i am in the probation period. The bond money may amount to ₹1.6 lakhs. My financial condition doesn't allow me to pay the sum and leave the company. Also i wont be able to abscond as i need relieving letter or service certificate to show the bank while joining. Is it possible to get a relieving letter or service certificate without paying the bond money? Incase its not possible, will termination certificate help me during my joining the bank. I mean will the bank accept the termination certificate? Or is it possible to get relieving / service certi along with termination letter? I know its confusing, even i am confused and don't know what to do, kindly help me out. Thank you.

From India, Chennai
sushilkluthra@gmail.com
221

Firstly it may be made clear that under section 74 of the Contract Act, only the reasonable expenses incurred by employer upon imparting training etc upon employee can be recovered and not the amount specified in the bond. The period of service rendered is also considered in quantifying damages to employer. If possible discuss with your employer to settle the amount. If nothing matures then legally speaking, it can be argued that under section 34 of the TN Shops and establishment Act by which you seem to be governed or say in other State Acts, also the employer can make deduction out of wages only those deductions which are authorized under the Act. Recovery of bond money is not authorized under section 34 of the said Act. You give notice of resignation and serve notice period as per the Act depending upon the period you worked under the employer or make payment of notice period in lieu of serving the notice period. Having done that send a copy of notice of resignation to the inspector under the said Act and to the labour commissioner to get you the relieving letter in accordance with the Act provisions. You cannot be treated as a bonded labour because even after having paid the notice in lieu money, you cannot be detained. But one thing is there you cannot be dismissed for non payment of bond money. Since you appear to be working as a software engineer at ground level, you will be treated as a workman as defined under Industrial Disputes Act and thus execution of bond with workman may arguably be treated to be illegal as under the Act the employer is required to give only one month's notice to workman and similarly on parity the workman has also to give same notice without discrimination. Any term and condition contrary to the ID Act may be in the form of bond period, is illegal. If you have courage to fight then only take this recourse otherwise follow the first settlement method.

Thanks

Sushil

From India, New Delhi
shasa01
Thanks Sushil for the reply. Can you clear my other doubt. Does bank(here bank of India) accept termination letter during joining? Will they create hindrance while joining? I am mentioning termination letter because, incase I dont get relieving letter from Infosys Limited I will get myself terminated.
From India, Chennai
shasa01
Thanks Sushil for the reply. Can you clear my other doubt. Does bank(here bank of India) accept termination letter during joining? Will they create hindrance while joining? I am mentioning termination letter because, incase I dont get relieving letter from Infosys Limited I will get myself terminated.
From India, Chennai
sushilkluthra@gmail.com
221

You are contemplating that you intend to have issued termination letter which is something like discharge simplicitor during probation because of non suitability. But your present employer is not going to terminate simplicitor. Nor your terms of bond are clear whether despite termination, employer may not insist for bond money. However, look at section 41 (1) of the Tamil Nadu Shops and Establishment Act. It says that no employer shall dispense with the services of a person employed continuously for a period of not less than 6 months, except for a reasonable cause and without giving such person at least 1 months notice or wages in lieu of such notice. Having got signed bond, they are not going to give you one month’s salary to dispense your services.

In the proviso such notice shall not be necessary where the services of such person are dispensed with on a charge of misconduct supported by satisfactory evidence recorded at an enquiry held for the purpose. Thus your termination can be for misconduct only. Once it is for misconduct, it will be stigmatic termination because of which Bank may not allow you to join. It may be hinderance in joining the Bank.

Moreover, in your curriculum the termination by an employer will not be a positive feature for future. So it is not going to be a cakewalk without clearing their dues.

Extract of the Tamil Nadu Shops and Establishment Act

"41. Notice of dismissal

1) No employer shall dispense with the services of a person employed continuously for a period of not less than 6 months, except for a reasonable cause and without giving such person at least 1 months notice or wages in lieu of such notice ,provided however, that such notice shall not be necessary where the services of such person are dispensed with on a charge of misconduct supported by satisfactory evidence recorded at an enquiry held for the purpose."

Thanks

Sushil

From India, New Delhi
kumar.ganeshv@gmail.com
When you took up the employment with Infosys, you were happy and accepted and signed the employment letter to stay for a year, alternatively pay bond amount. Now that you have got another employment offer the same is pinching you. Many people like you, have done similar act of abandoning the services, and hence most company have gone on record creating additional legal documents to protect themselves. The point is about reliving and experience letter will not be issued to you unless you satisfy the exit conditions of the organizations. While you may find many suggestions, the person who will be affect the most is you, since Infosys is known to take such people all the way to court. The legal matter may or may not settle in your favor, but the impending opportunity which you have could be lost. So (1) either pay the amount or negotiate with the company (2) stay with Infosys. Most important before you sign read, understand take opinions, because the court will certainly ask, when you agreed and signed the employment letter, then you better follow what you signed, while the content of the bond/employment letter could be debated to death, primarily you will be affected.

If you have been terminated – all the more chances are that you will never be accepted in any company.

Company can terminate you during your probation period, but you need to read the clause of bond – whether its applicable to be paid even if terminated.

From India, Bangalore
sushilkluthra@gmail.com
221

It is a fair dealing discourse that when you signed the agreement consciously you honor that commitment. But while signing such bonds etc a person is signing like layman who does not know the validity of such documents in the eyes of law. It is like either you sign or leave the offer. The bargaining power of big gaint MNCs is so high that a poor employee cannot say no while signing. The implications of section 74 of Contract Act may even be not known to many experts giving their opinions. In many decided cases even though liquidated damages in bond agreement is running into Rs 3 lakhs but before judicial courts the employer had to be satisfied with meagre amounts assessed to be including the training expenditure and flight charges etc.which comes to in thousands only. Is it not bond has made you bonded labour. At this time if a youngster is able to secure a better job opening, whether it is worth to prick his conscience falsely. Rather employer should introspect as to how much really he incurred expenses on training and he should transparently lay down slabs as how much reasonable amount a bonded employee should shell out according to served period.Besides the legal validity of such bonds qua workman should be got ascertained through legal experts then only they should enforce signing bonds.So in today's era before directing employee to sign bonds or asking to serve enlarged notice period than is permissible under Shops and establishment Act or ID Act, employer should see its validity.

Thanks

Sushil

From India, New Delhi
nathrao
3131

Blade cuts both ways.
I know of employees managing to get costly training abroad at company expense and then wanting to jump the ship.
No wonder companies insist on bond to cut losses.
Both employees and employers need to show equitable behaviour.

From India, Pune
sushilkluthra@gmail.com
221

True Mr.NathRao. But when dispute arises law of land prevails. You must have heard of Bank agents who chase after debtors and grab car and vehicles using muscles. But that was held illegal by the apex court.
Thanks
Sushil

From India, New Delhi
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