Insolvency N Gst Professional
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Consultant In Legal Matters
It Company
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It has been brought to our notice that many companies, hospitals, schools, and other organisations in India are forcing newly appointed employees to sign bonds/non-disclosure agreements with exorbitant amounts as security.

It is important to note that BONDED LABOUR is illegal in India.

It has also been pointed out that many of these organisations also confiscate the original certificates of employees and retain them throughout their tenure or the period of the bond.

These certificates are retained within the premises of the organisation, sometimes insecurely.

In the event of a natural disaster, theft, or fire due to short-circuit, an employee's credentials are likely to be destroyed/damaged and thus he becomes eligible to sue the employer for an unprecedented sum of money.

Many organisations also make false promises with regard to remuneration.

The employee is made to sign the salary register for a higher sum of money, while he is actually paid only a quarter of that sum.

All these are part of unethical business practices and have been banned by the Government of India under the Indian Companies Act.

Thus in the interest of both the employer and the employee, we would like to point out that:

-->Forced Labour is prohibited in India under Article 23 of the Constitution of India.

-->An employee's credentials/certificates cannot be confiscated by the employer whatever be the reason.

-->An employer may collect certificates only for the purpose of verification after which they must be returned to the employee within a few days.

-->An employer is not eligible to ask for a monetary compensation from an employee if he fails to honor the bond, as the bond in itself is illegal by law.

-->An employee is free to leave the employ of an organisation if he/she is dissatisfied with any aspect of the organisation be it for financial or non-financial reasons.

Many employers have been misled by their own lawyers into thinking that these activities are perfectly legal.

Employees too, on the other hand are not aware of Company Law and thus they are easily taken advantage of.

All those employees (including school teachers, freshers, BPO employees, experienced personnel) whose certificates have been confiscated should legally direct their employers to return their original certificates after due verification.

Upon failure to return original certificates, an employee is liable to sue the employer.

If you find your employer misappropriating the Salary A/c, you are supposed to report that to the Income Tax Department.


From India
I am facing this issue in Goregaon, Mumbai.
My employer has confiscated my certificate in Goregaon, Mumbai
Please assist me as to the next steps I can legally take to fight this
Is there any appropriate advocate/ lawyer that can help me?
Please email me: [email protected]

From India, Mumbai
Employer cannot retain original certificates of employee as security.
Upon giving notice to employer to return the same, if the employer refuses to return the certificates then criminal proceedings under section 406 IPC can be launched against him. Thus give a legal notice to the employer to return your certificates forthwith.

From India, New Delhi
Put up a request in writing listing out the certificates retained by them and ask for it back .The certificate is your property and proof of qualifications.
If still they do not comply warn the company that you are going to take legal action,including lodging of FIR.
But action of this nature will have repercussions on your job.
Think and act with care.

From India, Pune
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