Employment Agreement [Thread 521512]

Can any private company ask the employee to deposit the original educational documents or money in lieu as security that the employee is required to serve the company for 2-3 years. Please guide

This is infringement on personal rights and pose company in bad light. Though there is no specific law which says it is wrong, but as per general principle this is not right thing to do. Instead company should focus on retention culture by way of how employees are being treated at workplace.

This is retaining employee by force.
But blade cuts both ways.
There are many employees who run away to another company for even slight hike in pay leaving original company in sudden difficulty.
It is not an illegal practise if as per voluntary agreement employee gives his original certificates to company.
But my personal take is that such acts violate section 23 of Contract act.

Well Said Dhyan Chauhan
Its true. Employees will lose their trust and faith and they will have a negative psychological feeling in their mind about the organization.
Regards
Nitesh Jain

The employer cannot take Orginal Certificates from the employees.It comes under Bonded Labour and violation of Article 19 under constitution of India. you can make service agreement to the employees up to the level of Trainees which it will substantiate legally as the company has invested the amount in the course of Training.
Thanks & Regards,
V R RAO PULIPAKA

I agree with Rao Pulipaka, below is just an extract of the statement Bonded labour which is abolished by Indian Constitution long ago, but still illegally practised in india and even well educated are not aware of the facts when signing contracts with the new company.

Bonded labor, which is characterized by a long-term relationship between employer and employee, is usually solidified through a loan, and is embedded intricately in India’s socio-economic culture—a culture that is a product of class relations, a colonial history, and persistent poverty among many citizens. Also known as debt bondage, bonded labor is a specific form of forced labor in which compulsion into servitude is derived from debt. Categorized and examined in the scholarly literature as a type of forced labor, bonded labor entails constraints on the conditions and duration of work by an individual. but most forced labor practice are bonded labor. Contracts deny an indivi[/dual the basic right to choose his or her employer, or to negotiate the terms of his or her contract.

let me tell you CONTRACT is nothing but BONDED.

Yes, private companies mostly ask for original educational documents but just for verification purpose. These days mostly private companies doing this for security reason. They can deposit few amount from salaries but cannot keep the original educational documents with them.

But that is unlawful and shows the company's inability to retain their employees in good terms.
This is absolutely blackmailing and luring employees that they provide employment. That itself proves the company is not doing well and thus forcefully retaining the employees shows itself incompetent in the market.
The management needs proper training in retaining employees. If they cannot neither take care of the operations nor retain employees on good terms nor willing to learn, then they DON'T deserve the position they are holding and should take a walk & should find a job for themselves in another company where they are also dealt similarly, at-least to understand how a employee feels.

What can a employee do in such situations where the employers demands money inlieu to return your certificates. can any one guide me Please.
Sincere thanks in advance for your valuable advice.