Is It Legal to Hold Original Documents of Contract Employees? Seeking Guidance from HR Veterans

Hi Seniors, I am a newly appointed HR professional in a growing EPC company in Maharashtra, India. My employers/managers have been collecting original educational and experience documents from employees under contract. These documents are returned only when the contract ends or is terminated. They practice this in order to retain employees.

Question: Is it Legal to Keep Original Documents of Contract Employees?

Also, Is There a Probation Period for Contract Employees?

Seniors, please help me ASAP!!

Regards,
Anwar

Need Assistance on Document Retention and Probation Period for Contract Employees

I managed to find out about the retention of original documents on Cite HR. It's illegal!! [PLEASE CORRECT ME IF I AM WRONG] However, I did not get any strong information I could use to have this practice abolished. I still need assistance on whether there is a probation period for contract employees. Seniors, come on!!

Dear Member,

Retaining the original documents, an experience letter has no legality. Please refer to the "Indian Contract Act-1872" for full details.

Please do not hand over your originals to anybody at any cost.

Thanks and Regards,
jk

Hi JKant!!

I appreciate your response and assistance from the bottom of my heart. Yes!! I did go through that "Indian Contract Act-1872".

Now, can someone please tell me if there is a probation period for employees under a contract?

Dear Mahr,

I thank you for your assistance! I was sure that there is no probationary period for employees under contract but wanted to confirm it with my seniors before I step up against it with my management. Once again, I thank all the Cite HR members for your assistance!

Regards,
Anwar

When a person is on contract, we call him a consultant, temporary employee, or contract employee. There is no probation period for consultants. Once their contract comes to an end, you can either extend their contract for one more year, terminate their contract, or hire them as an employee on your payroll.

Hi Anwar,

I think we can have those just for cross-checking the photocopies provided to us. Otherwise, it doesn't sound legal.

To keep the original certificate is illegal. Even after successful completion of education (having documentary evidence like a mark sheet, etc.), the institute has no right to hold it. The clever employee may raise an FIR against the company for holding his original certificate after leaving. Some organizations keep them as employees are not aware. Yes, you can ask for verification.

Regarding the Probation Period:

- If the employee is casual, there is no need.
- If the employee is in a permanent post as per the HR policy of the contractor, you can confirm from day one or have a six-month probation or a one-year probation, but it should be mentioned in the appointment letter and mutually signed.

Best regards,
Jagranjan Mishra
Plant Head

Can you send me the legal format for collecting the original documents from the employees?

As we are setting up a new company in Gurgaon and want to implement the same in our company. Please help.

A company/employer can keep original certificates of an employee only for verification purposes for a limited time period, say two to three months, not beyond. As per the provisions of the Indian Penal Code, retention of Original Certificates & Mark List by the Employer is a Criminal Offence punishable under Section 403 [DISHONEST MISAPPROPRIATION OF PROPERTY], 406 [CRIMINAL BREACH OF TRUST], & 420 [CHEATING].

Dishonest misappropriation and conversion of movable property to their own use need to be proved under Sec 403. It is the same case with Sec 406 & deception needs to be proved for Sec 420.

It is advisable to talk to the employer regarding the return of the originals, failing which one can give a legal notice. Non-compliance with the legal notice can entitle the employee to get an FIR registered.

Regards,
Gurmeet S. Sethi

Hi,

Collecting original documents by the employer is not legal. The employer does not mention it anywhere in written form. Employees are not given any acknowledgement.

Probation period is applicable only for permanent employees and not for contract employees.

Regards,
Arpita

This is not legal. Only original documents are verified and returned immediately. They keep only copies.

Clarification on Keeping Original Documents of Contract Employees

Whether it's legal or illegal to keep the original documents of a contract employee in the office, it should be clearly mentioned in both oral and written communication (such as the offer letter). If a candidate is selected, they are required to submit all original documents. These documents will be returned only upon termination of employment, contract completion, or upon relieving from the organization. This practice will help avoid potential issues in the future.

Regards,
Sivasankaran A

Mr. Anwar,

When an employee is on contract, there is no probation period. However, in the contract terms and conditions, before signing, there will be a clause to be followed when terminating the contract, which is binding to both parties.

Satish B