Resignation During One Year Bond - CiteHR
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Dear Nisha,
On other things we both are on the same page but i just commented on the portion wherein you stated that the bond system is perse illegal in India. All i wanted was to correct you on that point only. Otherwise please go through my first post in the thread, you will find my answer are in your line itself. Only difference is that i didn't assumed the absence or presence of any training given to the employee. Let the querier weigh the situation.

Dear Mr. Kamal Kant/Ms. Nisha,
Presumpstions and Assumptions always mull over each other. I mean to say it so, every one has their own view to understand the situation. Its just we all are here to help each other and foresee a better Cite for our future HRians.
Well Done all.. Thanks for contributing your ideas to each posts we see daily and perform the level of outset.
Dear Ms. Manju - Kindly respond to your thread and let us know as to how far the post was helpful.

As per the issue described above, Probation period includes that any party either employee or employer can drop from the agreement with or with out notice. So in your case she was given notice period even. And one thing is like bonds will be acted as a fear agents to employees in probation period, we cannot take any action on this.
Even if the service-bond is executed to recover training cost from the employee, in case there is a breach of the contract, the employer cannot recover anything more than the actual resonable expenses incurred by them to provide the said training.Moreover , the remarks sometimes made by some of the experts that Bond is legal also not fully correct.Generally , such Bond is illegal as it is against section 27 of the Contract act as well as it violates Article 19 of our Constitution.The said Article guarantees freedom to all citizens to do any occupation, trade or business or to practice any profession.However, it is valid, if it is executed for any reasonable restraint e.g.to recover training cost or to protect intellectual property rights .Any Bond to restrict employment is absolutely void and illegal as it is bad in law.Andhra Pradesh High Court in Bakelite Hylam v/s S.J. Hasan (1985 I LLJ 438).It is public policy to oppose all restraints upon liberty of individual

action which are injurious to the interests of the State.Moreover,the employee may challenge the contract on the ground that it was one-sided and not entered into voluntarily.The Supreme Court of India in Niranjan Shankar Golikari v/s The Century Spinning and Manufacturing Company Ltd. (1967 I LLJ 740) observed that

restraints or negative covenants in the appointment or contract may be valid if they are reasonable.

Manju

Thanks to all the members for their guidance and views from various aspects of resignation process of an employee leaving job in natural process and agree with you.

I have two to three points to express my views , based on the query of Manju,

1. As small company, it is dificult to have formed fully formed HR policies and adopted procedures of HR process. In absence of the same , you can releive her with consent of MD, as he has agreed based on her resignation. Releiving a person is based on Job responsiblities, role played in the organisation, time taken to get replacement and KT. The time taken to do the all the above process is normally considered as Notice Period. It is not intended to recover money from out going employee in the name Notice pay. Only to find a replacement either internally or externally. It is at discretion of company to releive a person.



2. Please introduce a practice of creating PAY SLIP in excel and give to employees. Now a days , the payments have to made directly in the employee banks which has become mandatory above certain salary limit include chq no also.

3. when your MD has accepted her resignation, he has understood about the bond and notice period, then took decision to relieve by giving a date as last working day. he is the ultimate authority. There is no hard fast rule that all employees executed bond, and at time of relieving should definetly pay and get out , is against law. service bond works as support to business and to be executed judiciously.

By this you have might gained good amount knowledge on the subject and benefited for future and helped other readers too. Please understand my suggestion, if it works out good

Lakshmi,
Thanks for your valuable points.
But her last date is now on 31st Oct 2012. Still now she has not yet submitted the Appraisal
letter am following her in the mail but no response from her side.
My boss informed me not to give her a Payslips & Relieving letter on the last date still submitting her letter. she was making changes in the attendance record my boss had noticed that lots of leave and permission in between this notice period.
i have prepared a payslips not in a Excel format please let me know need any changes in there because no deductions are there
Salary Certificate
This is to certify that Ms. ************** designated as “Web Designer” has been paid as salary the following amount from ***********
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00

Yours Sincerely
************
Managing Director

Dear All,
Thanks for all your valuable feedback.....
Finally i have discussed with my MD and changed our Appointment letter there is no bond and i have prepared a payslips also can you please give your suggestions on this
This is to certify that Ms. ********* designated as “Web Designer” has been paid as Consolidated salary for the period June’2012.
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00
Yours Sincerely
************
Managing Director


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