Is It Legal for Employers to Request a Signed Blank Cheque Before Hiring? Let's Discuss Employee Rights and Incentives

Hello, could anyone please tell me if an employer can ask for a signed blank equivalent to the salary cheque from any employee before recruitment?

If an employee has worked for 2 years or more and produced business worth 1.7 Crores at a mere cost of around 20 lacs including all expenses, should he/she not claim the same from the company if no incentive is paid? Or is it illegal?

First part is that the company is asking for a security deposit, which is not a good practice.

Second part is that it all depends on the incentive policy of the company.

Hello,

In a unique situation, an employer demanded a blank cheque. To determine the relationship between employer and employee, what documents are you carrying that are important to provide fair advice?

Regards,
Gajendra Verma

May I ask why you have raised this query if you have spent 2 years in the company? Seeking a cheque for any amount may prompt questions regarding its necessity. Keeping such documents, including personal ones, is a violation of the Bonded Labour System (Abolition) Act, 1976.

Any activity that restrains a worker or employee from withdrawing themselves from work at their own discretion lacks statutory support. This constitutes a breach of fundamental rights. In the unorganized sector, it is common practice to retain personal documents and security cheques under the guise of preventing fraud, absconding, or breaching rules. While these conditions may be part of a code of conduct or employment contract, retaining another person's assets is unacceptable.

If your employer attempts to encash your cheque, they are legally required to document the transaction in the accounting system, specifying the nature of the exchange. However, if no goods or services are provided in return, this process cannot be completed.

Your question regarding incentives pertains to company policy, which may not have legal backing. Your employment terms and conditions should be clearly outlined in your appointment letter. Without a written communication detailing any incentive policy or structure, it lacks legal validity.