I recently joined in a private company and i have been to recruit new employees from a collage. i have gone through the documents which suppose to be signed by new employees. Th e issue is i noticed that new employees must hand over all their educational certificates and 3 years agreement signed by them. this is very unethical to me so i withdrawn my post and said other reason not continuing that. my question is the companies have rights to hold their employees educational certificates. I was once heard that this is offence in India and whether really management approved such a malpractice. I do not know how to escalate this to management . required advise from experts.
From India, Chennai
Dear Mr. Sankar,

Not many companies, practising this as an unfair business practices familarizing to unethical concerns. There are only a few raising alarm to such discriminatary practices which is more of a serious concern. Documents, Certifcates (in orginal) of an individual cant be beseeched by any employer as the employee can protest for such an act on unfair procedure.

Despite the fact that Agreement/ Contract/ Bond is illegal - To my surprise, in what way your company or the management has decided to enter a 3 year bond with the candidate -- "A gag" probably, is your company a huge IT firm? or any other industry? or what candidates do you recruit (professionals with immense experience or with a higher compensation pay? IF not I sure that your company provides a 3-6 month training for which cost the agreement has to been sited. pls. clarify.

Not any of the above; certainly then it might be just a muck to retain employees once hired. Unethical acts have a profound effect on employee morale and you been a responsible employee may speak to the concerned courteously and see what they have to say on this. Accordingly, you may understand the basics of their instincts on the same.

From India, Visakhapatnam
Hi das,
this is basically auto ancillary part manufacturer, making CI parts to OEM. who recently recruited are freshers about 6 of them 9K CTC per month. still i am working on it on how to escalate to management about seriousness of this issue. if you had good ideas or any legal statement quote reference, please post me i'll use as reference to start.

From India, Chennai

Partner - Risk Management
I am not sure if you did the right thing in resigning from your post, specially by giving the wrong reasons.

Instead you should have taken the matter up,with your management and appraised them of how wrong and unethical it is, perhaps telling them that you can not do it and will be forced to resign

There is no legal provision preventing an employer from taking the original certificates.

However, it's a bad practice

How do you keep the certificate safe ?

What happens if the same is lost or damaged ?

What happens if the employee files an FIR with the police alleging oppression and bonded labour or harassment ?

If there is a complain to the court about not returning the certificates, the effect will be severe.

There are court decisions stating the a bond to work for a certain period in absence of expenditure on training or in excess of the value of training is illegal.

Explain also to your management that one wrong act by a manager or HR in denying the return of certificate, or an illegal act, coercion or arrogant behaviour on the strength of having original certificates could lead to arrest of the directors

From India, Mumbai
Hi Saswata,

The practice is bad, but most of the IT companies hire freshers on Bond. Even Private Banks or some public Banks have similar policies. Even now a days Govt. is doing same. in many states doctors have to work in rural area for a period of 2 years at least. Any company when hires a freshers provides some sort of training which is cost to the company, what if the employee leaves the company in 6 months time after learning the skills. that company will be in loss if they don't have any proper agreement with the candidate. Lets take example of this company only, they hired 6 people, now after 6 months all the three or may be all trainees leave, than the company will be in loss. they will never hire freshers.

In a bond there has to be some specific amount to be mentioned, which the person has to pay to the company if he/she leaves before the bond period.

Dear Sankar, you should have discussed with the management regarding this. Its the management decision than what they want to do. Think from the companies perspective. being in HR, you have to think for company as well as for the employee too. your resignation didn't helped those people who were hired or will be hired.

Sankar, is your company doing yearly or half yearly salary reviews for all employee including the people on bond. if they dont than its wrong and is purely bonded labor, but if they do than it does not matter.

From India, Mumbai

Partner - Risk Management
Hi Neeraj

As far as i know, few companies follow this practice.

Probably I am wrong, since I am not going looking for jobs (and have not been a fresher for a long time). Personally, if someone asked me to give over my original certificates, i would tell him to F*&@^&*. But I am also aware that freshers often do not have any leverage or negotiating power, specially if their families are not from strong economic background.

People leave a company if they do not get what they want.

Be it training, satisfaction, or salary.

True, you will pay less to an untrained fresher. But after he is trained, he must be given fair wages. Else, he will go off somewhere he is going to get his proper salary. You cant go on paying him the salary of untrained fresher for 3 years.

In the end, this is a controversial topic, for which each company and candidate has to take his own call. There are dangers to the company, specially if some of the certificates get lost or damaged. Or in someone uses it as leverage to exploit an employee.

From India, Mumbai
IT Recruiter @ Spire Technologies
Hi seniors,
What Mr.Neeraj told is practised in many companies.. Mostly they do so is to retain the employees..
Could you please suggest some ideas on how we can convince the employers(Management) so that we can retain the employees without holding their certificates or any other unethical stuffs.

From India, Bangalore
I think most hospitals in India hold original certificates under their custody so that they can retain the staff with force even not giving them eligible increments, especially to nurses. We witnessed many agitations and protests of nurses in the recent times. The management acts like a mafia in most cases in India.
From Saudi Arabia, Riyadh

Human Resource Professional
Good discussion going on ,
i was working before 6 month which co was following same practice basically we have strong documention process there and we had a special almerah for that and only admin/HR can access that one.
and for bond yes they are following 1 year bond but they are spending around 6 to 7 lac per month on every employee for training. and you think yourself you can not get such a training without co help and why co will pay if you going to leave 3 to 6 month ...

From India, Gurgaon

Partner - Risk Management
What training is it that costs the company 7 lacs per employee per month ? I wold like to know the details
From India, Mumbai

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