Stuck in a Service Bond: How Can I Recover My Unpaid Dues After Resigning?

Service Bond and Salary Discrepancies

I have entered into a service bond with the company, and the bond was on a Rs. 100 NON-JUDICIAL stamp paper. The condition is to serve the company for 2 years; otherwise, a Rs. 2.00 Lac penalty will be imposed. When I was appointed, the company did not give me a salary increase, stating that it cannot be adjusted within the branch salary structure. Despite this, I joined the company with faith. Additionally, the company did not provide me with any technical training. Furthermore, employees who joined after me in other divisions within the same branch received almost a 30% salary hike compared to mine. These new employees were less experienced and less educated than me.

After 13 months of service, I resigned. I completed the notice period and safely returned all company property. However, the company is withholding all my dues and demanding payment for the bond amount. Despite following up with top management at the company, HR issued me a relieving letter, but my dues remain unpaid. This situation has been ongoing for 6 months.

Seeking Advice on Recovering Dues

What steps should I take to recover my dues from the company? The appointment letter does not mention a single word about the bond. Please advise.

Employment Bond and Full and Final Settlement

Employment bonds are illegal, and the company cannot enforce them. Concerning the full and final settlement, it is unclear from the post what amounts, besides the last month's salary, are pending from the company. If the amount owed is minimal, you may consider not pursuing it since you have already received your certificate and relieving order.

For the settlement of PF accumulations, you do not need to contact the company HR; you can claim it independently. However, if the amount is substantial and cannot be easily dismissed, you can continue to request it, stating that you have been formally relieved, and the matter of the bond is irrelevant.

Regards,
Madhu.T.K

Thank you very much. The company has not paid my last month's salary, bonus, leave encashment, and tour expenses. The total amount is Rs. 52,000/-. Will continuous requests help in getting my dues, or shall I have to take the matter up to the CMD level?

Regards,
Sunil

Dear Sir/Madam,

Can anybody advise me? I am Kenny, and I was working in a company for 3 months. I had taken leave for 2 to 3 days for some personal reasons. One of my trainers called me and said that there is a replacement for me. From the next day, I didn't go to the office, inform any of my managers, or receive their calls. I even signed a company document stating that I would work for 6 months. After a year, I received some alert letters stating that I need to provide a proper explanation. I didn't reply to those either. Now, I have received a letter stating that I need to pay 75,000 for my training expenses incurred.

My Questions

1) Do I need to pay that amount?
2) I am registered under NSR. Will I be able to get a job in any other company that is registered under NSR? I made a mistake by not replying the next day, but later I was scared and didn't reply.

Regards,
Kenny

Dear Sir/Madam, I am new to this site and came here in search of one question related to this topic. Please help me out.

Signing a Bond After Recruitment

Can any company ask the employee to sign a bond a few months after his recruitment when this was not informed during recruitment? What can be the maximum limit that the employee has to pay if he breaks the bond? Can this amount be above his annual salary?

Non-Compete Contracts

Can any company ask the employee to sign a contract that he/she will not join any of his competitors or companies in the same product line when he/she leaves the company? Is it feasible? For example, if a person is specialized as a Trainer in a BPO process, then obviously he/she will join any other BPO as a trainer only and cannot go into any other sector or field.

Thank you.

Sunil, please maintain continuous communication with the Chiefs until your payment is settled.

Illegal Bonds and Employment Conditions

Noopur, as already stated, when a bond itself is illegal, there is no question of when it is signed. If there is a condition of service, the maximum amount recoverable from the employee is the training costs incurred by the employer in respect of that employee. Just like a bond, an agreement preventing the employee from joining a competitor is also illegal. Everyone has the right to work with any employer of their choice.

Regards,
Madhu.T.K

Thank you very much, Mr. Madhu. You really boosted my confidence. I will keep posting the development in recovering my dues. I will start from tomorrow. Thanks again.

Thank you, Madhu ji. I have studied this but just wanted to confirm with a senior like you before speaking about this in front of the company's managers.

Yes, that's right. The contract that speaks about confidentiality and conflict of interest is fine. However, the contract that states you cannot join competitors or companies in the same process line, such as headhunting, will have no meaning.

I guess everyone here would have more experience than me, so I used the word "Seniors" :-)

I hope this helps!

Thank you very much, Mr. Madhu. You really boosted my confidence. I will keep posting the developments in recovering my dues. I will start from tomorrow. Thanks again.

Latest Update (12.06.11):

Sent a letter to the company HR by registered A.D. with a copy to the ED, giving a period of 15 days for payment. HR is silent, and there is no reply from the ED as well. Then sent a speed post letter to CMD with copies to ED & HR. Eight days have passed, and still, everybody is silent except me. I will wait until the end of next week. Should I mention legal action in my next letter?