Saswatabanerjee
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Kamalkantps
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Sunita Meena
Hr Professional
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Nashbramhall
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Raj Kumar Hansdah
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Ankita1001
Sr. Hr Executive @ Polymerupdate
Anita P Panicker
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Ravi.k457
Various Type Of Settlements
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Thread Started by #imrqur

Dear seniors,
Need your advice ..i have an offer from an executive search firm but then the clause is that I have give a one year commitment to the firm before joining by submitting 4 post dated cheques each amouting to 3 times my monthly salary offered here.Iam not a fresher and have about 3 years experience...I am very keen on accepting this offer and also have no issues sticking on to this job for the next one year.However, this clause of 4 post dated cheques sounds illegal to me...pls advise on how do I take this ahead ?
23rd December 2012 From India, Mumbai
The cheque is only a measure, to ensure you don't leave the firm, causing any business loss. Notice period is often, not served by the employees.
However, since you have a doubt, please connect with any ex-employee and investigate more about the culture of the firm. If an ex-employee didn't face any problem during exit, you will have fewer reasons to worry about !
Wish you all the best !
24th December 2012 From India, Mumbai
I for one would be cagey about joining a company that requires to give then cheques that amount to one year of my salary. If misused, it could leaf to very serious legal trouble including criminal cases against you. It seems that e culture of the firm is such that people do not stock around long enough.
Once you are under their control, their behaviour can be any thing, rude, obnoxious or unethical, you will just have to obey what they say.
On the other hand, if you really wish to join, go ahead and give them 4 cheques.
Then give stop payment order to your bank so that the cheques can never be presented
One person I know has even put an invalid signature on the cheque to ensure it is not encashable.
But again, I have very serious doubts against such a company. I am sure there will be better opportunities available.
24th December 2012 From India, Mumbai
Dear Mr. Imrqur,
I'm in a sturdy opinion that no employer would'nt misuse any cheque given by any employee as a matter of fact that they ensure proper work methods to be followed. Nevertheless, the suggestions insinuated by our above eligible members are rightly thought. On the contrary, I've faced this at an earlier time where my employer wanted me deposit a cheque as a security deposit without amount written on it -- What to do, I enquired the status of the company and its opus towards employees and found satisfactory (giving blank cheque is riky). Therefore, I have malformed my signature. Mine is a scenario where I had to offer my cheque from personal account and did not tally my signature.
In your case if you think to take up this job, check with the account, if that is from their company's account cheque book rather you can impede by reasoning cheque loss. All you need to do as a prior step is to investigate.
24th December 2012 From India, Visakhapatnam
I think you meant "no employer would misuse" ?
In a large company that is usually true
But in smaller companies, you are at the mercy of the owners or even trusted managers.
There is no forum for appeal either.
There are cases where the owners / employers have acted in an unethical manner on percieved insult or fault where none existed in reality. It's not a risk I would advice anyone to take, specially where there is a possible criminal liability for bounced cheques (who keeps 3 months salary in a saving account ?)
I have just seen a case where a consultant to a well known info tech public listed company is being Harassed and his payment for 3 months work held back. Forget natural justice of being heard, he has not been able to even get through to the divisional head (VP) to complain about his outstanding dues.

24th December 2012 From India, Mumbai
Dear Imrqur,

There is a basic principal of Law, which is quoted below

" The thing which cannot be done directly cannot be done indirectly"

This means you can do nothing to bypass any provision of law. In your case it is totally illegal and to keep post dated cheques from employees so as to force them to stay with the company for 1 year. This is totally illegal as this may be termed as bonded labour system which is illegal in India. As you said that you want to work with the company and ready to serve for 1 year, please weigh your options before you go forward. It is illegal for sure and I guarantee you that they wont be able to recover a single penny from you, even if you leave without serving for 1 year with them. As suggested by by Sharmila above please inquire about the company's reputation first as it is too risky to give signed cheques to somebody. It may cost you financially. One more thing I am failed to understand why three cheques? That too totaling to you 9 months salary. Please beware before accepting any such illegal offer.
24th December 2012 From India, New Delhi
Checking the past history of the employer/company is not an easy game since you are a new employee & will definitely hesitate to ask with any of the old employees of the company about the background of the company. May be you will get a courage to do so but are you sure that the other employees will give you the complete or right information? May be not because if the background of the employer/company is not good then the existing employees too will hesitate to discuss the same with a new employee, thinking that the new employee can complain the same to the employer..(I know you will not do this but how can they trust upon you?)

Giving blank cheques are no doubt risky..even after doing stop payment or false signatures. Becoz now a days cheque bounce case is a serious crime. If your employer deposit the cheques in the bank & it will bounce due to whatever reason (stop payment, insufficient funds or signature not matched, account closed etc etc.) it will be treated as you have done it intentionally. I am not telling you all this to give you more tension but to escape you to do any wrong thing at present, which can put you in trouble in future. You can also discuss about this from any lawyer if you can..

So, just talk to your HR directly whether they are ready to give you in written that these cheques will not be misused in any case whether you will resign or terminate by them due to any reason. You can also do one thing more, just hold this matter for few days saying that you are expecting new cheque book from your bank & till then observe the work culture here & try to be freindly with the existing employees so that they can give you the clear picture of the company/employer.

If none of the above option suit you then its better to look for any other opportunity.
24th December 2012 From India, New Delhi
I personally believe you should not be opting this. Reasons stated below:
As all are aware service bond is illegal in india and those are signed only to recover the training amount incured by the company. if its a bigger firm, we are assured that they would not misuse the amount. But when it's a smaller firm, who would give you a guarantee?
2nd they're making you sign a contract of 1 year, they can include a clause of paying a said amount if contract is broken. However that is possible only if they're gng to provide any training. From your post, i understand the firm is a recruitment consultancy/agency. Usually there is no formal training provided for which they should be charging you anything, esp wen you're experienced.
Pls do not fall for it...
24th December 2012 From India, Mumbai
I am surprised to know this. I had heard of companies with-holding a part of salary as 'retention'. Service Bonds have been in vogue. But its entirely illegal to ask an employee to deposit un-dated/post-dated cheque equivalent to their salaries !!
Some has given opinion that "if its a big firm, one is assured it won't be misused...". As a matter of fact, no big company worth their salt, would ever indulge in such practice !!!
I request all members, who are with blue-chip companies to give information where they faced such a situation at the time of joining ??
Such practices, if they exist, should be discouraged and opposed.
Warm regards.
24th December 2012 From India, Delhi
I have read trhis thread with interest. In my working life of 40 years+ (in the UK) I was never asked to give neither a bond nor post-dated/undated or blank cheques. It's illegal in the UK, even now. If all candiates refuse to provide such cheques, the compnies will stop such practices.
24th December 2012 From United Kingdom
#Anonymous
Hi
i am agree with saswata banerjee . me too signed agreement for a year but here enviroment is not good always seniors directors are talk rude .
just do investigation well about the company then only join .
25th December 2012 From India, Mumbai
I do agree with Banerjee. If you insist,either join that company with submitting the cheques or will wait for good opportunity. Regards Ravi
25th December 2012 From India, Mumbai
#Anonymous
Hi,

If a cheque is dishonoured for insufficiency of fund,it will attract criminal liability under sec 138 of N.I.Act.However under section 139 of the N.I.Act,it is the presumption of law that the cheque has been issued for discharge of debt in part or full or any other liability.Many courts in India has ruled that the debt is a present obligation and not a future contigency.If you can prove that the cheque has not been issued for discharge of any debt or liabilty,it will not attract criminal liability under section 138 of the N.I.Act.Before depositing the cheque you can submit a memrandum of deposit stating that the cheque has not been issued for discharge of any debt or liability in order to get protection from section 138 of the N.I.Act.Many cmpanies are asking for securities of this kind which can not be considered as illegal as cheque is a unconditional order and the drawer of the cheque can not escape his liability in case dishonour of a cheque.

With regards

S.G.Bhattacharjee

Guwahati
25th December 2012 From India, Guwahati
A post dated cheque, is a cheque in which a future date is entered. This means that the cheque cannot be cashed until that day. Such cheques are perfectly legal unless they interfere with a contract or an agreement.
One should refuse to give cheque as it is taken by the company for security and for Retaining Employees and to ensure the stability of the employees.
Few employees are leaving the organisation without serving notice period and abscond after taking salary so this may be the reason why company are retaining some amount and asked for post dated cheques.
26th December 2012 From India, Indore
Hi,
I had come across similar kind of discussion in the Legal site, please go through it, it will help you to take a decision.
Can employer ask for undated cheque? - Legal Documents Forum - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers
Regards
Anita
21st March 2013 From India, Mumbai
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