Facing Salary Cuts and Bond Penalties: Can My Fiancée Leave Her Job Without Paying Rs 50,000?

Hi All HR Professionals and Labor Law Experts,

I need your guidance urgently. My fiancée works in an organization where she was asked to sign a service bond of one year during the time of joining. The bond amount was Rs. 50,000/- if she quits the organization within one year. The organization didn’t provide any copy of the agreement letter and just a one-page joining letter stating the total annual salary and some terms and conditions. Also, she was not provided time to study the agreement letter and was asked to sign it immediately. They have also kept her final year graduation mark sheet. Now the organization has asked her to work for a lesser salary because, as per the organization head/owner, her performance is not as per their expectation. She has denied working for less salary. In that case, the organization is asking to end the agreement and to pay the bond amount. It's written in the one-page joining document: “If at any time, in the opinion of the management, you are found guilty of dishonesty, negligence, or indiscipline, or of violation of any terms and conditions, your employment stands terminated without any notice period.”

Salary Reduction During Bond Period

I want to know, during the bond period, can the employer decrease the monthly salary amount and force her to work at a lower salary?

Payment Obligations and Termination

Please let me know whether she needs to pay any amount if she doesn’t want to continue to work at less pay. She has completed 6 months in the organization; does she need to pay the full amount (Rs. 50,000/- total) or a part of it? Also, please let me know if the organization terminates the agreement, will they provide a termination letter or a resignation letter? As per my understanding, a termination letter will spoil her career.

Claiming Salary Slip and Relieving Letter

Also, I want to know whether she can claim a salary slip and relieving letter from the organization or not in case she leaves the organization.

Resignation Grounds and Bond Payment

Also, I want to know whether if she gives resignation on the below grounds, does she need to pay any bond amount? The reasons are:

- The organization doesn’t provide salary on time (after the 10th of every month, and that too in installments like 5000 on the 12th, 6000 on the 20th, and the rest later; dates are just for explanation). Salary is provided in cash.
- Salary slip is not provided by the employer.
- Salary gets deducted if one takes leave for personal/sick reasons.
- No proper visibility of rights at the workplace. The situation is like working as a daily wage laborer. People are asked to work on national holidays and scheduled holidays.
- People are asked to work beyond office hours (10+ hours of job, extending to 11 hours).
- She is asked to work on all Saturdays, while other employees get the 1st and 3rd Saturday off.
- Mentally harassing by pointing out performance every day.
- No proper environment for girls to work there. Both male and female employees use the same washrooms.

There are no HR people in the company. It's a small company with 10-15 people working there. The employer/owner has said that he will provide his final decision on Monday. I personally don’t want her to work there anymore because of the above-stated conditions.

Please help me with your guidance. Can anyone please provide their personal number so that I/my fiancée can contact them to get their valuable guidance?

Regards,

Hi All HR Professionals, Seniors, and Labor Law Experts,

I need your guidance urgently. My fiancée works in an organization where she was asked to sign a service bond of one year during the time of joining. The bond amount was Rs. 50,000/- if she quits the organization within one year. The organization didn’t provide any copy of the agreement letter, just a one-page joining letter stating the total annual salary and some terms and conditions. Also, she was not given time to study the agreement letter and was asked to sign it immediately. They have also kept her final year graduation mark sheet. Now, the organization has asked her to work for a lesser salary because, according to the organization head/owner, her performance is not up to their expectations. She has denied working for less salary. In that case, the organization is asking to end the agreement and pay the bond amount. It's written in the one-page joining document: “If at any time, in the opinion of the management, you are found guilty of dishonesty, negligence, indiscipline, or violation of any terms and conditions, your employment stands terminated without any notice period.”

Query on Salary Reduction During Bond Period

I want to know if, during the bond period, the employer can decrease the monthly salary amount and force her to work for less salary.

Obligations Regarding Bond Payment

Please let me know whether she needs to pay any amount if she doesn’t want to continue to work at less pay. She has completed 6 months in the organization; does she need to pay the full amount (Rs. 50,000/- total) or a part of it? Also, please let me know if the organization terminates the agreement, will they provide a termination letter or a resignation letter? As per my understanding, a termination letter will spoil her career.

Entitlement to Salary Slip and Relieving Letter

I also want to know whether she can claim a salary slip and relieving letter from the organization if she leaves.

Grounds for Resignation Without Bond Payment

Also, I want to know whether, if she gives resignation on the following grounds, she needs to pay any bond amount. The reasons are:

• The organization doesn’t provide salary on time (after the 10th of every month, and that too in installments like 5000 on the 12th, 6000 on the 20th, and the rest later; dates are just for explanation). Salary is provided in cash.
• Salary slip is not provided by the employer.
• Salary gets deducted if one takes leave for personal/sick reasons.
• No proper visibility of rights in the workplace. The situation is like working as a daily wage laborer. People are asked to work on national holidays and scheduled holidays.
• People are asked to work beyond office hours (10+ hours of job, extending to 11 hours).
• She is asked to work on all Saturdays, while other employees get the 1st and 3rd Saturday off.
• Mentally harassing by pointing out performance every day.
• No proper environment for girls to work there. Both male and female employees use the same washrooms.

There are no HR people in the company. It's a small company with 10-15 people working there. The employer/owner has said that he will provide his final decision on Monday. I personally don’t want her to work there anymore because of the above-stated conditions.

Please help me with your guidance. Can anyone please provide their personal number so that I/my fiancée can contact them to get valuable guidance?

Regards.

Employer cannot compel her to work for a lesser salary unless low performance is proven by the employer. As she has completed 10 months, I advise you to let her complete 2 more months peacefully and then change the job. If others are enjoying the 1st and 3rd Saturday off, then why is she being targeted?

Regards

Thanks for the advice. Actually, she has received campus placement. For the first 6 months (17th Jan '13 - 16th Jul '13), she worked as a trainee and was paid 5000 Rs. per month. From Jul '13, she became a full-time employee, and the agreement was signed at that time. Therefore, she needs to work till Jun '13 to complete the service agreement period. In her joining letter, it's written that there will be a review after every six months only if the management wishes for the same.

Please revert. Can I call you personally to discuss the conditions?

Thank you.

Also, please guide on how the bond amount will be settled. She has not received any salary slip for the last six months, despite asking for it weekly.

Regards,

Dear [Employer's Name], Please kindly convince the employer amicably that she wishes to leave the organization peacefully. Also, kindly provide the experience certificate and necessary documents at the time of her exit. I am confident that this approach will be successful. If not, we can always seek assistance from labor authorities.

Bond Settlement Guidance

Regards

I would suggest letting her complete one year, then look for a good job and leave that company. They have her certificate, so don't take any legal action. Just learn the lesson: never sign blindly on any agreement and don't submit your original documents anywhere. Offer to pay them 50,000 as a trainee. That's all. Have a good day!

As everyone has suggested, let her complete a year in that company and leave amicably. As you have rightly mentioned, it is also torture working under such a situation. I would suggest a few things:

a) Let her carry a small diary with her to the office, and whatever mistreatment has been directed towards her, let her maintain logs of it. For example, if today when she goes to the office, her senior comes to her and mentally harasses her about her performance, let her jot it down in her notebook (obviously when no one is around) with the date and all details. Let her continue to do so.

b) Secondly, tell her to take leaves in between under the pretext of being unwell/medical reasons. This way, the number of days she has to face such situations are fewer. Let her keep on complaining that she is unwell and regularly take time off. Then, once her bond period is completed, let her obtain a medical certificate from the doctor stating that she needs to be at home for 2-3 months and can't do any kind of job. She can then resign on those grounds, and on that pretext, she will get her certificates, etc.

c) If possible, let her approach the authorities to obtain a salary cum employment certificate for loan purposes. This will serve as an experience certificate for her in case her current employer refuses to provide one.

d) The most important thing is not to panic and react. Let her be brave. If they keep forcing for a lower salary, ask her to explain her financial problems and request consideration. If they still insist on reducing it, it will be a big burden. If possible, ask them to be kind enough to maintain the same salary. These people need to be emotionally influenced, and if they persist, advise her to continuously express her situation to her senior in a soft manner, emphasizing her great financial difficulties. At times, she may need to persist in such a way that the other person gets fed up.

Tell her to face them bravely. After all, these lessons learned will make her stronger and wiser. All the best.

Alternative Approach to Address Workplace Issues

Suggestions from other members are already available to you. I would like to propose a totally different approach:

• Advise her to prioritize the retrieval of her mark sheet and other original documents promptly. Alternatively, suggest applying for a duplicate mark sheet from her institute, which should be expedited given the recent timeframe.

• Present a written request to the authorities for her salary slips.

• Consider filing a case of Sexual Harassment against the top boss of the organization. This suggestion is based on the biased treatment she has faced from management, particularly being asked to work on Saturdays while others have the day off.

• Once the case is initiated, recommend proposing resignation as part of an out-of-inquiry settlement. Specify a condition that all necessary documents, such as the relieving letter, payments up to the last working day, payslips, and any other required supporting materials for her future use, are handed over to her immediately on the resignation date.

Regards,
Preetam Deshpande

This is pure harassment. I am also an employer, and I can surely tell you that your worries will not be over even after the completion of one year. They will find numerous ways to take this forward.

Though Preetam's solution seems a little unusual, the only way is Tit-for-Tat. But don't threaten and make them alert.

If needed, cooperate in salary reduction without signing any document. If they ask, they should also sign the document in duplicate.

Build your case first by creating proofs for things. Let things get documented. Whatever communication she is doing, let it be over email, even for asking for a salary slip. Use personal email for this, as you may not have access to the company email in the future.

Find out if they are showing you as an employee on their books. You may ask for a professional tax receipt.

You may not even have proof that she is working there. Have they given Form 61 or similar things? Does salary transfer happen through the bank?

And if nothing moves, for a lady, harassment charges are an ultimate weapon.

In all cases, ensure that this matter is well publicized. Her institute and future employers should know about all this. For a company, image does matter.