Feeling Trapped by a Bond: How Can I Retrieve My Certificates and PF Money?

My Situation:

I'm an engineering graduate who worked in a BPO company for 2 years (signed a bond). In the same company, I did IT-related work for 6 months.

With that experience, I joined this current IT company with a lower salary because it is well-known in my city. They had me sign a bond for 2 years and took all my original certificates. The bond stated a "consolidated salary of Rs.X" per month. However, HR convinced me that an additional Rs.2000 would go towards ESI+PF. Only in my first month's salary did I realize that my actual salary is only Rs.X, and the ESI+PF amount is deducted from it. I was unaware at that time.

I have been working here for more than 6 months, earning a meager salary even after receiving a performance appraisal increment. Recently, I discovered online and by inquiring at the EPF office that I only have an establishment code, and the company did not submit the application I filled out when I joined. When I asked HR, he initially mentioned an issue with the PF office but later claimed he had all my forms for security reasons. He stated that all PF dealings can be done online and that I need to be patient. Other senior colleagues received their PF amounts only after 2 years to prevent people from leaving the company abruptly. I suspect my PF money is still with the company.

I was hired as a "Trainee." A mentor was assigned to me, but no time was allocated for training. I have been self-learning and working hard, handling as much work as senior employees.

I am fed up with all this situation. I have decided to leave the company, even if it means fighting tooth and nail.

Note:

1. The bond is not on stamp paper, just printed and signed on ordinary paper.

2. There is no compensation mentioned in case of breaking the bond, except for the sentence: "You are required to stay with *company* for a minimum of 24 months so that you can ensure that your tenure is mutually beneficial and growth-oriented."

3. Previous female employees have left the company by citing marriage as a reason, and one male employee brought his police relative to retrieve his certificates successfully. I have no such leverage and must handle this situation alone.

My Questions Are:

1. How should I handle it if they refuse to return my certificates even after politely requesting them?

2. How can I retrieve my PF amount? Can I claim my PF amount, and if so, do I need attestation from my current employer?

3. How can I receive payment for the days worked in the month if I leave before the salary date?

4. What is blacklisting, and how does it work?

Thanks a lot in advance for patiently reading and for your suggestions!

There is loads of information on this subject on citehr. Hope you searched through the research tab. Anyways, please note it is illegal for any organization to take the original documents from the employee, and you are certainly in a strong position to fight to get your originals back. You can file a police complaint also in case your company refuses to return your original documents. Meanwhile, hope you have some acknowledgment or proof that you had submitted your original documents to the company.

Regards,
Gia

Thank you for the reference link, Arti Shah. It was helpful. He is at an advantage as the bond never stated anything about compensation in case of breaking the bond or about retaining original certificates. However, I have signed this bond (which isn't on a stamp paper) that states the company will retain the certificates for 24 months!

Oops, sorry if this is in the wrong segment. I posted here because I saw a few discussions, and even the link provided by Arti Shah was in the "Labor & Employee Relations" segment. May I know which is the right segment for this discussion?

Thank you for your opinion, Gia! Yes, I'm searching for similar discussions on citeHR. I have the photocopy of the bond and also a photocopy of the acknowledgment of all certificates I submitted to them. So, now I think with these proofs, I can get my certificates. I also worry about being blacklisted and about obtaining the PF amount, which are asked in Questions 2, 3 & 4.

Regards,

Only after I secure a job in another company and consider all your suggestions and ideas, I'll take the step of quitting my current job. I'll then request my certificates and PF amount from the company. [I'm a bit cautious nowadays :)]

I think if a polite request doesn't work, as a last resort, I'll act as the worst employee so that I'll naturally get terminated.

If the PF is deducted (appears on your payslip too) and the company has still not deposited it into your PF account, then it is a non-compliance issue on the company's part as well. They get audited for this as well, and they will not be able to simply get away with deducting your PF and not depositing it. Since you mentioned it is a well-known organization, I am sure they are taking care of meeting all the statutory compliances.

Options for PF After Quitting

Coming to your query regarding getting the PF amount after quitting, well, you will have the option either to transfer the PF to your new company or withdraw it. The process time varies while withdrawing or transferring, and the company doesn't have much control over it, of course, provided the company completes all their set of formalities.

Hope the above info is useful.

Regards,
Gia

Fine here, it goes. First, I'll highlight how it works and then provide suggestions:

1. Regarding your employment, I'm sorry you have to compromise on the salary part. It may be for any reason, but it's your choice that you went for that opportunity with a bond and salary, whichever they offered. So, you have to play it cool to get out of this mess. It's quite natural to make a bad career choice, but eventually, we will learn to rectify it.

2. As for a company asking for a bond, it may be a common practice, but getting the original documents and retaining them for a prolonged duration, as in your case 24 months, is strictly illegal and not acceptable by Indian law. Any company can ask for the original documents and keep them only for a limited period for verification purposes, not to trap the employee from leaving the company. As for the bond in India, even if you sign a bond with your employer on stamp paper regarding employment, it's not valid. There are many articles on this; please search for them to get more ideas.

3. Regarding your PF settlement, companies may follow different processes for handling them, but holding it back and not processing it is illegal.

4. If the company has not invested in you in any form, which means you are not liable to your company in any manner, so there will not be any settlements required. But if the company claims they have invested, make sure you get the right documents and countermeasures if it's a lie to retain you.

Suggestions:

1. It's not right to get terminated from a company as it can affect your future employability. Even if you explain why you had issues with your previous employer, it might raise questions about your future behavior. So, avoid it at all costs.

2. As for your documents, for the time being, your company is a good place to keep them. If needed, ask for them back. If they refuse, consider legal action through a lawyer or labor court.

3. When leaving a company, it's better to do so after the salary date to avoid issues. Some companies may try to trap you illegally; be aware of your rights.

4. Once you resolve your problems, your company is obligated to settle your dues, including your full and final settlement.

5. Be patient, maintain a record of all communication, and always stay professional, even in legal battles.

That's all I can say. I hope other senior members here can provide more insights.

Thanks.

Sorry, I missed your question about blacklisting. I assume you mean the company blacklisting you. If that's the case, don't worry; there is nothing called blacklisting. Perhaps they will do the so-called blacklisting in your current company only, which I think you would no longer be interested in working for. So, don't worry about that.

Yes, this is a non-compliance issue. The company is ISO certified, yet somehow indulges in such immoral activities. Other senior colleagues also didn't get their PF amounts remitted to their accounts until two years later. They remained silent all those years in fear of management. It seems I'm the first person to ask management about PF.

Till now, I've been playing the nice guy. I'm only stressing HR a little bit to get my PF amount. I'm relieved to know that "blacklisting" is just a word used to scare employees. I Googled and found that only NASSCOM does that, and even its actions are questionable. Your suggestions are shrewd and helpful, anonymous.  So wise of you guys! You have increased my hope of getting out of this mess. Thank you very much!