Illegal practice of Notice Period - asking to submit a cheque equivalent to a month's salary in advance - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
R B Yadav
Advocate & Management Consultant On Labour
Pon1965
Construction
Psmoholkar
Labour Laws
+2 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
I've recently joined a company but they are asking to submit a cheque equivalent to a month's salary in advance. So that if I quit the organization within a year they shall redeem amount through cheque. Isn't it an illegal practice? What should I do now?
It speaks the standard of the company you are employed. I don’t whether it is legal or not but definitely it is not a ethical company. Pon
It is an illegal practice. It shows bad HR practice also. better don’t accept such offers because such companies are not good places to work. Madhu.T.K
Since you have already joined the company, you have to tell them that this condition is not applicable because you were not told about it while issuing the appointment order. Start looking out. It's obvious that you have joined a petty minded unethical company.
Dear Member I am 100% agree with Mr Madhu T K version, the practice adopted by the company is against the provisions of Labour laws and against the principal of natural justice. Regards R B Rao
It may not be ethical but it is not illegal. A lot of companies are following this practice as the % of the employees jumping the bonds have increased.
You have a choice of either joining the company or quitting the same as they are asking for the cheque.
I have come across many companies, good companies who follow this practice and therefore it would be too premature to judge the organization only on the basis of one aspect.
The move is only to safeguard the interest of the Company.

This practice is unethical. It is legal only if it is mentioned in the appointment order which the employee receives and accepts prior to his joining the Co. Organisations cannot do their operations as per their whims and fancies with utter disregard to good pracctices and legal provisions. Just because a host of co.s indulge in illegal practices it doesnot become legal.
It is both unethical and illegal. You should not see the matter from the company perspective alone. The company needs human power and you can not say that the labour is just hungry of employment. It is common that people leave without following the normal practices but just think why should people leave if the organisation is good? I have not seen high attrition in good places to work but at the same time attrition is very high where the system itself is wrong or faulty. Only organisations who feel themselves that people will not be happy to be with them will collect undated cheques.
Madhu.T.K

Is there anything I could do to make them learn? Is there any gov. body who looks after such issues? I just don't want it to happen with any candidate. Nowadays, employees are compelled to accept such offers as the condition of job market is poor.
Thank you all for your replies. But I am curious to know what could I do against such a firm? If we can't do anything except abhoring the organisation then what's use of sharing experience here. Just as you all know, I didn't join that company. Though I do have few remedies yet I would like you all to share your opinion first.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™