Is It Legal for My New Job to Demand a Month's Salary Cheque Upfront? What Should I Do?

I've recently joined a company, but they are asking me to submit a cheque equivalent to a month's salary in advance. They mention that if I quit the organization within a year, they will redeem the amount through a cheque. Is this practice illegal? What should I do now?

It reflects the standards of the company you are employed by. I don't know whether it is legal or not, but definitely, it is not an ethical company.

Pon

It is an illegal practice. It shows bad HR practices as well. It is better not to accept such offers because companies engaging in such practices are not good places to work.

Regards,
Madhu.T.K

Since you have already joined the company, you should inform them that this condition is not applicable because you were not informed about it when the appointment order was issued. Start looking for other opportunities. It's evident that you have joined a company with petty-minded and unethical practices.

I fully agree with Mr. Madhu T K's version. The practice adopted by the company is against the provisions of labor laws and the principles of natural justice.

Regards,
R B Rao

It may not be ethical, but it is not illegal. A lot of companies are following this practice as the percentage of employees jumping the bonds has increased. You have a choice of either joining the company or quitting the same as they are asking for the cheque.

I have come across many companies, good companies, who follow this practice. Therefore, it would be too premature to judge the organization only on the basis of one aspect. The move is only to safeguard the interest of the company.

This practice is unethical. It is legal only if it is mentioned in the appointment order which the employee receives and accepts prior to joining the company. Organizations cannot conduct their operations as per their whims and fancies with utter disregard for good practices and legal provisions. Just because a host of companies indulge in illegal practices, it does not become legal.

It is both unethical and illegal. You should not see the matter from the company's perspective alone. The company needs human power, and you cannot say that the labor is just hungry for employment. It is common that people leave without following the normal practices, but just think, why should people leave if the organization is good? I have not seen high attrition in good places to work, but at the same time, attrition is very high where the system itself is wrong or faulty. Only organizations that feel that people will not be happy to be with them will collect undated cheques.

Regards,
Madhu.T.K

It is both unethical and illegal. You should not see the matter from the company's perspective alone. The company needs human power, and you cannot say that the labor force is just eager for employment. It is common for people to leave without following the normal practices, but just consider why people would leave if the organization is good? I have not seen high attrition in good places to work. At the same time, attrition is very high where the system itself is wrong or faulty. Only organizations that feel people will not be happy to be with them will collect undated cheques.

Is there anything I could do to make them learn? Is there any government body that looks after such issues? I just don't want it to happen with any candidate. Nowadays, employees are compelled to accept such offers as the condition of the job market is poor.

Regards,
Madhu.T.K

Thank you all for your replies. But I am curious to know what I could do against such a firm. If we can't do anything except abhor the organization, then what's the use of sharing experiences here? Just so you all know, I didn't join that company. Though I do have a few remedies, I would like you all to share your opinions first.

Your original question states that you have joined the company. Then you state you have not joined the company. You seek inputs on what can be done and if nothing can be done, then what's the use of sharing the experience here. You seek a response to this statement despite having received inputs.

Gentleman, firstly, be clear as to whether you have joined the company or not, since your statements are contradictory. Secondly, please read through the inputs given here. This is a public forum on Human Resources and not on legal matters. All members coming on board here share their knowledge on the Human Resource function. Some are experts, some are specialists, and some are even novices and learners. They will provide their inputs at their pleasure and convenience and what they feel is right according to them. It's up to you to take it or leave it.

What further advice are you seeking? Are you seeking inputs on destroying the organization in some manner or another? Expecting a response in a manner you desire and like is not the correct expectation in a public forum like this. It is also not advisable to seek advice on such serious matters in a public forum like this and act upon it, since the consequences of such actions are faced by you and not the member who gave it.