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nehakhale
4

Hello Everyone!!!
I am wrking in an IT comp. as an HR executive. We have a serivce agreement for the freshers joined recently. They are done witht their probation. now one of our employee wants to break the agreement with a genuine reason that her spouse is getting transfered to US and she has to go with her.
We on such condition has to allow her to break the bond but we cannot leave it without any penalising otherwise it could create trouble to handle other ppl under agreement.
Please suggest wat could be done so that it wont sound harsh on her as well as it should be fine on Mgmt part as well.
Hope For some replies
Regards,
Neha Khale

From India, Bhopal
chitra.sharma
24

Hi! Neha
Since that employee has a very genuine reason i dont think this should create any kind of problem to any of the employees. The best you can do is take a written statment that y she is leaving the company along with the proofs i.e copy of her VISA & Tickets.
In that case the other employees would not mind and even anyone won't use the same reason for wrong purpose.
Chitra

From India, Mumbai
mkprasad2004
55

Hi Neha,
Frankly speaking you can not do so if She has informed regarding going abrod with her husband.
Signing of service agreement is just a psychological fear created in the minds of Employee.You have to follow long Legal procedure and without doing this you can not ask for any harsh treatment.
The best way is you need to creat Multi skill staff in your organisation to take care of urgent needs for organisation.
In some cases who knows she is really going abroad with husband or going to join some other company. In this case new employers have paid the penalties and taken away the staff.
The best is let her go and there is nothing that you can do about this. It is very long process and time consuming.
Regards
mahesh k prasad
9820775178

From India, Mumbai
nehakhale
4

Thanks Guys,
Though she has a genuine reason, but it counts on the whole recruitment and training process. and being a SME it matters a lot.....she has a geniune reason...may be the other students will make sm other and will look for other job....this could be a problem for us in futher.....is thr could be any mid way to settle this thing without being harsh on the employee????
Regards,
Neha Khale

From India, Bhopal
Madhu.T.K
4193

If you permit one to break the bond, others will also expect a similar waiver. The matter may be genuine. You cannot have two policies within the organisation. But at the same time, what is the significance of an employment bond? Suppose an employee proves that by training him for a year or two the company had incurred nothing as cost but instead the organisation had gained a lot by way of him, the bond is not going to stand. And you will be constrained to relieve him without any penal charges because right to work any where as he likes is a fundamental right conferred on him and you cannot hold him. Normally, employment bond is just to avoid unnecessary attrition and it is justified in such cases where the training involves huge expenditure on the part of employer. Therefore, if you feel that the reason for leaving is genuine, releive her without giving much publicity amoung the other employees that no penalty has been recovered.
Regards,
Madhu.T.K

From India, Kannur
mkprasad2004
55

Hi Neha,
Answer for your new question is Make Multi Skill/ Multi tasking Employee by training. This is the need of the hours keeping in mind Attrition rate are very high in IT.
More than this Service agreement really do not serve any purpose ,it is just a Psycological fear and much depends upon what is mentioned in his appointment letter.
Regards
mahesh k prasad

From India, Mumbai
jkumarjk
28

Hi Neha
Even i have come across similar situtation. In these situations, we have collected the proof of docs. of her travel, and collected the amt. that we have spent on the candidate's training. We have seen the person getting relieved transfers the knowledge to team mates and proper handover takeover is done
Just to be safe, in one case, we have taken a agreement from the person getting relieved that he/she leaving the organization would not take up similar job with any competitor for the next 2 years in India and we have put a penalty clause in the agreement in case of breach of conttract
Hope the above gives you a solution

From India, Hyderabad
Madhu.T.K
4193

Making an agreement to the effect that the person releived will not take up an employment of similar nature with a competitor will sound as 'unfair labour practice' and will not stand in law as such agreements are voidable. It is a fundamental right of a person to chose a job he likes and he only can decide where or with whom should he work. Therefore, it is always desirable to keep away from such agreements/ contracts.
Regards,
Madhu.T.K

From India, Kannur
nehakhale
4

Thanks everyone, And special thanks to jkumarjk. i guess this could be the absolutly fine solution i waslooking for.. thanks a lot once again. Regards, Neha Khale
From India, Bhopal
D P S Chauhan
Dear NahaKhale,
Very simple. Say her that since breaking of service is from her part, it is the sole responsibility of her to accept the conditions mentioned in the service agreement. In company these types of genuine reasons can come again and again. so please do not make it a issue and solve it as per laid down condition of the service agreement.
dps chauhan

From India, Delhi
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