Dear colleague,
The scheme ,under the lure of equal contribution by the employer and payment of simple interest after ten years' compulsory service, is nothing but creating bonded labour of sorts. At the end you only live with unwilling and barely contributing employees.
The forfeiture clause is unjust, one sided and illegal. The scheme violates basic right of Indian citizen of freedom to choose the work and can't bind him under such dubious agreements , though he somehow agrees to sign at the time of joining in full awareness.
Such lopsided schemes protecting only employers' interest at the cost of employee's, not only be condemned as bad employment practice, but should be put to test in the court of law.
Instead of chaining employees with such negative initiative, create positive work culture where the employee not only does not think of leaving the organisation but feels committed to work at his best for company's interest.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant