Srishreesree
Sr Generalist - Hr
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Harsh Shukla
Ceo And Md Of 3 Uk Based Mnc's
Sreeram70
Manager
Dlghr89
Head Hr - Mahindra Aerospace
+2 Others

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Hi honorable members, Iím working in a leading consulting firm (Manpower Consulting) in Bangalore and was working with them still and from 2010. Recently when I resigned from my company, the management officials told me that I have to pay one lakh rupees then only I will be getting my experience and releaving letter.

Is it legal to trap to employees by asking back the incentives paid for the performance when the employee resigns??

Kindly find the clear details below for which they are asking the 1 lakh rupees from me.

Basically We have worked and hired people abut 11 members approx for a technology software startup company from 2010 till early 2012 and that tech company Is liable to pay 19L approx for the same.

Complaints and mistakes :

1.) The Tech company didnít paid even a single rupee to my company on the 19L approx.

2.) My current company has not received the signed contract copy from the client company

3.) All the candidates we hired during the period are still working at the time, mostly there will be a clause if that hired employee leaves the client in 3 to 6 months the consulting firm has to pay the money back or give a replacement free of cost. In this case all the employees hired are still working and to the worst part they have not paid any single rupee.

4.) The company threaten me If I donít pay the money back (1L which I have received as an incentive for doing the hiring process) I will not be releaved or even If I force them they will not give me exp and releaving letters and to the worst case they can terminate me now by giving an reasons.

5.) I have resign officially two days back and my Manager who has accepted the resignation via email and confirmed to, only then this problem started.

6.) Getting harassed by the management for the same

Dear Members and seniors and experts kindly help me, somehow I feel this is very unethical to trap the employee like this plz give me a solution If you need more information plz ask im ready to give it to you as soon as possible.

Thanks & Regards,

Sarathy
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Dear Sarathy,
Please be a little bit more clear:
1. Is the tech company(client) specified is the lead generated by you? or some one else?
2. How did you company work for your client by with out receiving the signed agreement copy?
If you are not related to above two points, your company cannot ask you to repay the incentives given. You did your job and company paid incentive for your work. The dispute between the two companies should be solved by both respective managements. They should not involve employees in between.
Thanks & Regards,
Srilakshmi Korukonda
Hi Sarathy,

From the information you have given, there are two scenarios at play.

If the tech company had not signed the contract, then why did your company supply candidates?

This is your company's problem and not yours.

Whilst, there may not be a signed contract there is a verbal contract, evidenced by the fact that candidates were supplied.

The only course of action is through the courts and your company must decide if it is economically viable to do so.

The second scenario concerns you. If you have resigned, then you cannot be terminated. If an incentive payment was made to you due to your performance and you delivered, then the payment is yours to keep.

Therefore, i can see two courses of action that you can take:

1) Send the company a legal letter threatening to take them to court, this letter should come from a lawyer. As your company has taken no action against the tech company it is unlikely that they will pursue this through the courts, either and the matter can be concluded.

2) I assume you have all documentary evidence of what you say. In which case you may wish to consider simply walking away from this company and producing the evidence for any new employer, to support the reasons why you do not have the release or experience letters.

I hope the above helps and I am sure other members will give their views.

May I take this opportunity to thank you for your post as it is a reminder to all of the value of a signed contract.

Regards,

Harsh
Hi,
As an employee you have no consequence of the client not making payment to your organization, unless you have signed the contract with client and started the hiring process for them.
As an employee of the recruitment firm you have just carried out the assignments assigned to you by the organization and have been rewarded for the same.
It is not a similar situation related to making sales and getting incentive. You need not have to do any thing to recover the money from the client and it is clearly the responsibility of the person who has taken the decision to start hiring for the so called client.
You may send them a resignation letter once again by a registered post with acknowledgment and ask for proper relieving letter and in case of any pressure tactics by the management seek legal advise.
Kind regards
Dayanand L Guddin
Hello Sarathy,
Harsh has given you very realistic & practical suggestions.
However, even though he suggested TWO options that you have--Either/Or options--I would suggest you implement BOTH of them simultaneously for 2 different reasons.
The First PoA [sending a Lawyer Notice reg the intent to initiate legal proceedings] would ensure your company will be on the back-foot & at least stop their pestering you. If that continues, your lawyer should be able to handle it.
The Second PoA would ensure you DELINK your joining the new company with the action you are contemplating with the present company.
But pl ensure you have WRITTEN proof that they asked for the Incentive back--in whatever form [if you don't already have it, try different ways of making them commit in-writing].
All the Best.
Rgds,
TS
Dear Srilakshmi,

kindly find answers to your questions below

1. Is the tech company(client) specified is the lead generated by you? or some one else?

That was a lead generated by my company and im lead the team to work for the client as an Assistant manager with 3 member team

2. How did you company work for your client by with out receiving the signed agreement copy?

They both agreed for the contract and a legal contract was sent to the Tech company but the person who is in-charge from my company failed to get signed and get it back. and this was came to know to the company itself only when they wanted to take a legal step against the Tech company, so now they are trying to collect as much as possible from the employees, they tried the same with one of the other employee when he tried to leave but since he was a junior he just left and joined a company through a third party and since he didnt had any problem as the third party agreed on the situation but i have 3yrs exp and it will become a problem for my career if i leave just like that.

Kindly let me know your inputs

Thanks

sarathy
Dear Harsh,

Thank you so much for the reply,

for your questions kindly find the answer below

They both agreed for the contract and a legal contract was sent to the Tech company but the person who is in-charge from my company failed to get signed and get it back. and this was came to know to the company itself only when they wanted to take a legal step against the Tech company, so now they are trying to collect as much as possible from the employees,

Also the company is of 20yrs old and they multiple branches across the major cities in India and financially strong



And coming to documents point you mean my resignation mail which i have sent it to them and the reply which i got, if yes i have sent them to my mail id and also for a safer side i have opened the conversation in the system and took a prt src (snap shot) and saved them as a pic and sent to my id just to avoid any future conflicts which these people might try on me.

Also i have answered few other questions plz see them also and kindly let me know your inputs

Thanks

sarathy
Dear Dayanand, Thank you for your valuable reply, i have answered few of the questions here plz go through them and let me know your inputs. Thanks sarathy
Dear Sateesh,
Thank you for your reply,

When they came and told me this, i have asked them few days time to think on this and reply and i have not agreed to pay or commented any thing on that expect asking for time, as i regularly ready the cases here in cite hr i thought i should get some valuable suggestion before taking any steps, and as you have asked i have also thought of asking them for a written mail from the right and concern authority. so once i completely understand the procedures and process, i will talk to my company and ask them the written letter or mail for the same.
Also i have answered few other questions raised by other members for my request plz go through them and let me know your input.
Thanks
sarathy
Hi Sarathy,
Thank you for your answers.
You have received good opinions and suggestions from other members.
I don't think I can add any more substance, except to reiterate:
Do not mix the company's problems with the tech company with your issues.
Regards,
Harsh
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