Kamalkantps
Advocate
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
+1 Other

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one employee who joined in June 2012 at chennai as Associate Mentor and hq at hyderabad and

worked for four months, while joining he signed 100rs non judicial stamp paper agreement

for 2 years and he had given a undated cheque given for two months salary if he leaves

within the agreement period of two months basic salary.

he left the company on october and without any notice period nor informing the head of his

department. when hr department sent a notice to rejoin and sent a message through his mobile

that due to family and health conditions he is not do the job and consider it as resignation



even though we sent another warning letter to rejoin or surrender the company property

now we had deposited the cheque and it was dishounered for UNSUFFICIENT FUNDS and we

sent him legal notice

as the agreement clause

That in the event of the Employee leaving the services of the Company before the Expiry

of the period of the Contract, as also in the event of the Employee making it obligatory

or necessary or expedient on the part of the Company to terminate his/her services for any

reason of whatsoever nature and for all things, the employee shall be liable to pay and

shall pay to the Company a sum equivalent to Two Calendar Months (present salary) by way

of agreed liquidated damages and the Employee agrees to pay the same without any proof of

actual damages suffered by the Company being required to be produced.

2.That the employee has to submit an undated cheque equivalent to two calendar month

present salary (mentioned in point no. 6) at the time of signing the agreement.

as i want to know how to proceed in legal course

as the agreement clause

That in the event of the Employee leaving the services of the Company before the Expiry

of the period of the Contract, as also in the event of the Employee making it obligatory

or necessary or expedient on the part of the Company to terminate his/her services for any

reason of whatsoever nature and for all things, the employee shall be liable to pay and

shall pay to the Company a sum equivalent to Two Calendar Months (present salary) by way

of agreed liquidated damages and the Employee agrees to pay the same without any proof of

actual damages suffered by the Company being required to be produced.

2.That the employee has to submit an undated cheque equivalent to two calendar month

present salary (mentioned in point no. 6) at the time of signing the agreement.

as i want to know how to proceed in legal course
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Dear Idea1,

Firstly, let me highlight a point, Bonds are illegal in India but by reason of certain amount of investment on the employee (training, if any provided) can be liable. Get a thorough enquiry against the employee before filing any sort of charge sheet. An enquiry person should be appointed at your end to serve the investigation process. In this sift, you need to ensure sending a registered post with the query conducting the reason for not attending duty scenario & by asking him to submit the belongings/ office property at compulsion to his last know address intimating that he shal be liable for legal action if he doesn't report to duty (stipulate the period) and has to serve a resignation letter with notice period as per his offer/appointment. If the post is not acknowledged or any case of refusal it can be marked a "for" point, an legal notice can be sent rreiterating. Ensure this has to be worth doing process only when there is any loss to your company (any means)/ extreme that the employee is obligatory to the site preferred his position is at stake to the company.
thanks senior

1. he sent a mobile resignation to his Head of the Department

2, when our HR Department sent a notice through email to rejoin or communicate him through personal for not rejoining the duties from his end there is no reply

3. our legal department deposited the cheque and after returning for insufficient funds, the legal department sent a legal notice but it was returned saying without instructions you have sent the notice

MY QUESTION IS TAKING BOND SERVICE IS NOT VALID BUT WHEN HE SUFFERED ONE YEAR WITHOUT JOB OUR ORGANISATION HAS GIVEN HIM A CHANCE TO WORK WITHOUT ANY RESPONSIBILITY HE LEFT WITHOUT PROPER COMMUNICATION AND THIS MAY FOLLOW WITH OTHERS SO OUR HR DEPARTMENT WANTS TO TAKE THIS STEP AS A SERIOUS

PREVIOUS ALSO OTHER EMPLOYEES WHO WERE ON BOND ALSO LEFT AND THEY A REQUEST FOR RESIGNATION OR TOLD THAT THEY GOT ANOTHER JOB AND LEFT WITH GOOD TERMS neither we had accepted any value training expenses or we made any conditions to leave and 1 or 2 employees left without notice period also they left

this practice of leaving midway when we assigned him a project after giving him training and for company this may take some time to train other person and place him on that job but if the project is not completed in time then the credibility of the company in the market will be effected and company is on such projects employed and what about other employees who are sincere to the company if any thing goes wrong for only one person in this competitive world

please advice
Hello Idea1,

Like Sharmila Das mentioned, Bonds are NOT legal in India UNLESS the company has spent on his/her training--which is VERIFIABLE.

Also, like she mentioned, pl check-out whether your efforts would be worthwhile--sometimes companies end-up spending heavily for a result of peanuts--hope you get the point.

Reg the remarks/comments you mentioned:

1] 'he sent a mobile resignation to his Head of the Department'

--such modes of communication aren't still NOT acceptable in India for Resignation. So, legally, he is still on rolls of the company--UNLESS you have agreed to accept his mobile resignation.

2] 'the legal department sent a legal notice'

--to the extent I know of, Bounced cheque cases fall under the Criminal code [CrPC]--so you can file a Police Complaint right away. BUT, before doing it, better check-out if the employee can take a stand that he was coerced into giving the cheque. If he does it, then you could another problem, instead of solving the current one.

3] 'WHEN HE SUFFERED ONE YEAR WITHOUT JOB OUR ORGANISATION HAS GIVEN HIM A CHANCE TO WORK'

--suggest don't take such hiring decisions based on emotional grounds. While it is OK & good to be compassionate, pl also remind yourself that you wouldn't have hired him if his services were not useful to the company and, in all probability, you must have got him 'cheaper' than others. So you did it in 'Self-interest' & it only was in-sync with his situation. If what you say was indeed the case, then why did you take the Bond? Hope you get the point.

Coming to the options open to you @ this point of time, pl make a cost-benefit exercise before going legal AND suggest tighten your HR processes. Taking a Surety during the Bond process could be one aspect.

Also, if you find that the attrition is way beyond normal, it could also be a pointer to some lacunae within the Company Policies/Practices/Environment--which are contributing to so many people leaving during the Bond period.

All the Best.

Rgds,

TS
Dear Idea1,
I think you have not understood what Ms. Sharmila has stated. Dear this type of bond is illegal in India. If you would have given any kind of training to him, you were entitled to get the bond money. Which is not the case i suppose with you. On the top of it you kept a undated and signed cheque from him, which is again comes under forced Labour, other illegal labour practice.
If i were you, i would have not taken any action against him to enforce the bond or for recovery of cheque amount as the same would have been illegal on my part. Only possible action you can take against him legally, would be to recover the notice pay in lieu of short notice served if mentioned in his appointment letter.
The bond is only legal in India when you provide any training against it, otherwise it comes under unfair labour practices and punishable under Law.
we had given him training for 15 days and he is from other state Chennai so we provided him hotel stay and total day expenses for all 15 days
if we calculate this 20 days training more then his notice period pay
I certainly understand the factor of dissapointment to the co-workers with the aftermath effect which is staggering and obdurate.
"What best can be done to avoid this hard-boiling feeling within the colleauges and especially the management"? --
"Don't let them see they are getting to you." I agree and encourage you to take it another step further: don't let them get to you. Make sure you designate duty to a supporter who can help check people gossiping on this matter and disturbing. Frequently, this happens as some people enjoy hearsay. Therefore, any more could happen take a session to councel the project members & explain them that they should focus on work & shortly there is another eligible member joining shortly.
You have to reinforce the isolation of the negative contemplation from the past and ensure stability to the fellow members.
In such case i need to see your Bond to see if you have mentioned in the bond that the same is signed as a result of training provided to him. If you have done so please go and enforce the bond you will surely get success. I also condemn such an act from any employee.
sir already i had disclosed the two paras which include about the damages does this is not enough
"by way of agreed liquidated damages and the Employee agrees to pay the same without any proof of actual damages suffered by the Company"
and no other paras are included against amount for training
and the actual training is for 15 days not 20 days
I second Mr. Kamal Kant on his above mentioned point. If you’ve provided training "liquidated damages" in which clause has been entrusted in the bond; what more should you worry about?
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