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To All HR Professionals,

This is a story of worst HR practises practised by one of the company. I dont think proper to disclose the name but still I want to share this, as one of my friend was working & had left the organisation within 5 months.

My friend joined the company in Jan, 2007 on Officer level. While joining the company he made only one mistake that he signed & accepted the offer letter without making much enquiry about the practises that are prevailed in the company.

The offer letter consist one condition of keeping of Employment Deposit of Rs. 10,000/- with the company for 2years & it will be repaid him on his contineous service of company for 2years. Though he was aware of this condition, he was not aware that employees are mentally harrased and are compelled to leave the service of the company within 2years. But soon he realised while working with the company as after his appointment, two employee absconded on the spot without any warning or anything. Ofcourse, the employees who were absconded were paid their employement deposit but i.e. also after one-three months within that period employee may get frustrated specially who are freshers. And the employees who are enough tough, or not found guilty anywhere are harrased mentally by withdrawing the minimum property to deliver the services like systems, software applications from system or not providing enough infrastructure, so that employee will be induced to leave the company before 2years. Also, management attitude shows that they dont need the manpower at all and they have favoured the society by providing the employment. This is not the opinion of my friend but the conclusion made after discussing with his co-workers who are facing the same experience.

Now with same problem my friend has left the job with proper deliver of resignation mentioning the reasons for his leaving the company. First all infrastructure withdrawn from his system saying these software are not allowed to use. The software was installed by the company only. Then entire system was withdrawn from him and shifted for other person to use. Telephone use was already made restricted saying company can control on unnecessary phone call to customers, candidates and outsiders. Only one number was in use for local calls for five departments and two number was for std calls.

Now, my friend left and wants his Employement Deposit but the company is refusing saying his accusation is wrong and he should not left the company before 2years. Also, company not only takes such deposit from Executives, Officers and white coller employees but also, from the Drivers, Swippers etc. The only difference is the amount of deposit collected is less.

I am waiting for the your opinion for this.

Thanks & Regards,


From India, Mumbai
Dear Yashswa,
Under no cirmustances can a Company take money from an employee(unless the Employee has taken money from the Company and he has to repay) and keep it without paying interest at the local market rate.
It is not only illegal but the nature of offence is criminal in nature and can be treated as illegal amassing of wealth to conduct business.
Tell you friend to consult a lawyer.

From India, Thane
Dear Mr. Swastik,
Thanks for your advice. I wanted to confirm whether such money can be claimed legally or not b'coz my friend had accepted the offer letter while joining the company where this condition was included therein and kept the Employment Deposit with company while joining the company. Thanks once again.
With Regards

From India, Mumbai
Dear Yashswa, No, keeping interest free deposit per se is illegal. So, unless the Company has a solid legal reason for keeping it, you can proceed under criminal law. Regards, SC
From India, Thane
swastik is right.....

my advice would be to lodge a case with Economic Offences Wing, this is mopre on the lines of a scam...

write to newspapers too, bad publicity hurts everyone..

remember the media coverage last year wherein Headhunters were charging exhorbitant sums to get freshers placed in companies....

i have some across a simliar case, there the company was keeping a deposit and getting candidates to sign on dubious documents. hwoever the catchline was, the company was providing them mobile phone n laptop which needed to be covered up...

this company was hiring only desperate freshers who were not able to get a break anywhere...

i was approached by one of the candidates for advice, i spoke with a manager and told them that the company need not charge 50k as security, siince i was his local guardian of sorts, i would help the company in buying a business insurance policy to cover all risks.

The poor fellow got angry n perplexed at the same time, thanks to my exposure to business insurance regulations in UK....

result was they didnt hire him


From India, Delhi
hi, ask ur pal to get outta dis asap, ask him to get help from peers, get things right and start fresh and double check from nxt time. Good luck! regards lily

I would also suggest making the name of the company public. This would help saving, at least a few, if not all, from being deceived into employment in the future.
From United States, San Diego
make the name public....you will save others.
report this scam to news channel without disclosig your detail or better after getting a job elsewhere.
Its always better to do a ref check of the company and if possible of the reporting boss before joining an organisation.

From India
Hi to all,

Reporting such scam is not problem. But as you all may aware that the serviceman always thinks twise before going for such things. Because, this is not faced by 1 person but all those who have worked with the company. So, this should be a collective action by all. The worst thing is nobody are interested to claim their 10,000/- by spending 50,000/- on reporting, filing case and all. And the MD of the company is much of aware of this thing.

Still I think it is essential to make aware to other so that one should not suffer. I will not disclose the name, however the company is from healthcare industry, it conduct mainly the thyroid testing. Now, the company has started giving interest on Employment deposit at good amount of interest rate. But in offer to my friend no such interest was offered to him in his offer letter. Therefore, I would request to all of you that, anybody from you or your any friend, relative is joining such company he should make an enquiry and understand clearly the purpose of taking such deposits.

Thanks & Regards,


From India, Mumbai
What a nonsense practice. No doubts, the persons are dealing on behalf of company are HR Professional. I would request such people from the profession, to discourge such practices at their level best bcoz oneday they will have also face the same situation in life. Dont look only your interest, keep in mind all society. Hope, we shall take care at our levels.
Ramzan Sheikh

From Pakistan, Karachi

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