Hello Seniors, I'm presently working with a small web developing company as an HR Admin for 2.5 months. When I joined, my employer took my original documents for verification and had me sign an agreement stating that I must serve them for at least a year. If I leave before that, I'll have to pay them a stipend equal to six months' salary. Initially, the company claimed to have over 50 employees, but I later discovered this was false. They explained that many employees had left due to the company's small size, urging me to increase the workforce. However, the company lacks contacts with consultants or subscriptions to platforms like Naukri Resdex. Despite a promised salary of 8000 basic + 5000 performance-based (totaling 13000), I have only received 8000 for the past two months.

All employees, including myself, have submitted their original documents and are struggling to retrieve them. Management claims that returning the documents would lead to staff not showing up at the office. Additionally, my employer has erratic office hours, often arriving after 4 pm or not at all. Communication with the employer is challenging, as he rarely responds to calls and shifts blame onto employees for lack of work, often requiring weekend shifts despite the policy stating 2nd & 4th Saturdays and Sundays as holidays.

I seek your advice on this situation. Is there any action we employees can take to reclaim our certificates and leave this challenging environment? Notably, there are no established policies regarding salaries, incentives, bonuses, or leaves for employees.

Kindly advise on how to proceed.

From India, Chandigarh
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Understanding Employment Agreements and Certificates

I am surprised to hear this. How did you sign the agreement without reading it? If it is written for only one year, then you can ask them to return your original certificates as you have already completed the said period. Also, I just want to let you know that no organization in India can bind an employee with an agreement/bond that is void. It is only meant to scare fresh graduates so that they stop job hopping and learn things.

Always remember to do thorough research before joining any firm. Every organization follows certain policies, procedures, and principles that dictate the organization's functionality. Some follow them while some just claim to. You don't have to be scared. This is not the time for you to worry about all of this, as you have already worked for 2.5 years in that firm.

Steps to Retrieve Your Certificates

First, decide with an open mind whether you still want to continue with the firm or leave. If your decision is to leave, then go and tell the employer to return the certificates. If they agree and give them back, then fine; otherwise, tell them you will proceed legally. You can definitely get back your certificates with ease without getting into any hassles. As mentioned earlier, in India, no organization can bind an employee with bond terms. It is not valid in the court of law.

Hope this is clear.

Regards,
Prashanth


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Thank you for your valuable suggestion, Prashanth, but I would like to correct you that it's not 2.5 years that I have been working with this organization, it's only 2.5 months. My major concern is regarding the fact that I'm a fresher. Before this, I had worked with a recruiting agency for 3 months, but that was just to get the feel of working before actually joining any organization after my MBA. I don't have any type of learning being provided by this organization, and moreover, there seems to be no growth perspectives. I'm really concerned about my future now.

Please suggest what I should do...

From India, Chandigarh
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Dear Sonia,

Few organizations provide training, and few don't. Since you are an MBA graduate, you should be capable enough to identify your job roles. There is plenty of information available on the internet.

Firstly, you should decide whether you want to continue with the present organization or not. If you think you can, then think positively and continue. If not, then move on. Speak to the present employer and tell them the reason why you want to quit. You can even provide medical reasons as well. Request them to release you soon.

If they listen to you, great; otherwise, inform them that you may need to proceed legally by filing a case in the Labor court or through other means. Usually, this doesn't happen, but if they are reluctant, be firm.

As I said, first and foremost, are you really interested in the job? If yes, then go ahead. If not, then leave it and look for something else.

Regards,
Prashanth


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I may sound a little down, but your first priority is to get your documents back. The agreement that you signed couldn't have mentioned anything about your documents. Make your best approach and ensure you get your documents back.

You have signed a bond, so you may not be able to change your job anytime soon. Since you are a fresher, working in a firm might add to your credibility. Initially, every role in HR requires hard work. More importantly, do you have an offer in your hand? The market is volatile. The offers for freshers are mostly from recruitment consultants. Companies are hiring experienced HR professionals. It may take some time for you to find a suitable role. Until then, continue in this organization.

I am sure you will do your own research before joining your next firm. Please stay away from handing over your documents ever in your life.

From India, Mumbai
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If the organizational culture is so poor, perhaps you won't be able to continue for long, so it's better to look for a fresh start. Is there any written document that can further prove that they are keeping your documents for some period? If not, then you may ask by stating that your family member needs a loan and you need to provide the documents for verification or find some other way to retrieve the documents. In the future, beware!

Thank you.

From India, Delhi
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Thank you all for your valuable suggestions. What I have decided is that I'll get my documents back first anyhow, and then I'll quit this job because there's no actual HR work here, and no growth or learning that I could get. I had started positively, thinking of framing some policies in this organization, but every time my plans are in vain because my employers never feel satisfied with the actual concepts. They always have different philosophies that suit their interests only, giving the reason that they are the boss and the business is not being run on any charity fund. I have realized it is useless to work with this firm anymore now.

Last month, I was given the task of framing a bonus policy for the organization. I spent day and night creating a good policy that would be linked to the salary as usual and even provided other alternatives if they wanted it to be performance-based entirely. However, it was all in vain. They finally decided to nominally hold some cash as a bonus which will be calculated every 3 months and paid in the 4th month if they feel the employee's performance was good, without an accurate framework on how it would be linked or calculated. They even don't discuss my salary calculation, and I am constantly being paid only 8000, which was decided to be 8000 + 5000 per month. It is really something very unethical.

I have planned to tell them that I have to move back to my hometown because my mother has not been well for some time, and being the only daughter, I should be with her at this time to help her.

From India, Chandigarh
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And they hadn’t mentioned any thing regarding documents in the offer that they had made to me.
From India, Chandigarh
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Dear Sonia, Your documents should be at the top of your priority list. Deal with this very sensitively. Remain stable and show no concern towards the job. However, you may require your documents for other legal purposes and reasons deemed fit to your situation. You are the best judge of your situation. Set your priorities right. No matter how bleak it may seem, find the best learning from your existing role. Remember, it's the reason why you would find your next job. Jump the boat, along with the incentives from the current environment. Too often, we get involved in activities and responsibilities that may not make any sense when we do them, but appear different at a later point in time.

Managing ambiguity and difficult leaders takes years to excel. You are lucky to have found this in your first job. Even when you may stand to feel lost, take my words, you will still have significant learning only if you keep an open mind.

Discussions on Managing a Career Through Challenging Situations

Here are two discussions on managing a career through challenging situations. Every situation is unique, yet there are many learnings that we may take from each other.

- Please advise on the career graph: https://www.citehr.com/310306-please...eer-graph.html
- How to streamline messy functions: https://www.citehr.com (Link updated to site home) (Search On Cite | Search On Google)

The bottom line remains on how much you can maximize this situation. Give yourself a stopwatch and start counting your takeaways before you move out. This will help you stay focused.

Regards,

From India, Mumbai
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Original certificates are considered property. You had entrusted this property to the employer. He can retain them for verification purposes only and then must return them. If he fails to return them, he commits an offense under section 406 IPC. Your lawyer can send a notice for the return of these certificates, and if the employer still fails to return them, you can file an FIR or a complaint before a criminal court.

Working on Holidays

Regarding being asked to work on holidays, the employer is required to pay overtime under the Shops and Establishment Act and the Industrial Disputes Act. You can file a complaint with the labor inspector, etc.

Thank you.

From India, New Delhi
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Dear Sonia,

Steps to Retrieve Your Original Documents

The first task is to retrieve your original document from your employer. You may file a complaint at the DLC office (District Labour Commissioner-State Govt). Don't worry; they will definitely help you retrieve your original document from your employer. Give a copy of the letter to the LEO (Labour Enforcement Officer-Central Govt) and also send a CC to your employer through registered post.

Since this case falls under the violation of the Industrial Disputes Act of 1947 and the Payment of Wages Act, if you wish to pursue further action, also submit a letter regarding unpaid wages. However, my personal suggestion is not to escalate the matter. Focus all your efforts on finding a good job.

Regards,
B.N. Dey

From India, Bokaro
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Retention of Original Certificates by Employers

An employer who does not want to return the original certificates of an employee is evidently harboring malicious intent to exploit the employee or deliberately cause them loss. The original certificates should have been returned to the employee after comparison. Employers can retain a photocopy of the certificates (self-attested by the employee). Even if the employer wants verification from the university, they can send a copy of the certificate for confirmation. Yet, if the employer retains the certificates under the guise of their rules, even though the easiest and non-dilatory method should be adopted, it must be legally valid.

Inspectors under the Shops and Establishment Acts, though dealing with certain work conditions of service of employees, may be helpless in some areas. For example, regarding the return of certificates, there is no register of certificates required to be maintained under these Acts, and therefore no information can be sought regarding the retention/return of certificates from the inspectors.

Thus, an inspector under the Shops and Establishment Act may not invoke their jurisdiction on the complaint of an aggrieved employee to get their certificates returned. Even if an inspector sends a notice to such an employer, merely claiming suspicion about the genuineness of the certificate being verified will not allow the inspector to adjudicate the matter due to a lack of jurisdiction.

Legal Recourse for Employees

It would be different if an employee is covered under the Industrial Disputes Act, 1947 as a workman, as they can approach the labor inspector contending unfair labor practices or victimization by the employer for not returning their certificates. Thus, an employee who is not a workman will find themselves entangled in this issue for a long time. For a non-workman, the inspector will have no jurisdiction to send a notice to such an employer.

An employee cannot be left at the mercy of such a malicious employer for an extended period. Filing a civil suit will be a dilatory proceeding because what is sought in the main relief cannot be granted as interim relief.

A practical, justice-oriented method that provides quick relief must be invoked. Upon lodging an FIR against such a stubborn employer, the criminal court can order the delivery of the original certificate to the complainant under Section 451 of CrPC. This is the quickest legal method of recovering original certificates.

Section 451 in The Code Of Criminal Procedure, 1973

Section 451. Order for custody and disposal of property pending trial in certain cases. When any property is produced before any Criminal Court during any inquiry or trial, the Court may make such an order as it thinks fit for the proper custody of such property pending the conclusion of the inquiry or trial. If the property is subject to speedy and natural decay, or if it is otherwise expedient, the Court may, after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of. Explanation: For the purposes of this section, "property" includes:
- (a) property of any kind or document produced before the Court or in its custody,
- (b) any property regarding which an offense appears to have been committed or which appears to have been used for the commission of any offense.

Legality of Retention of Certificates

Let's examine the legality of retaining original certificates in the context of various High Court decisions. An act prohibited by law is illegal. As per Section 6 of the Transfer of Property Act, there is a prohibition on transferring any right concerning these certificates.

Thus, the agreement cannot be treated as a valuable security creating a legal right in favor of the Management to retain the certificates forever despite the demand for their return. The definition of wrongful loss makes it clear that if a person legally entitled to a property is wrongfully deprived of it, it constitutes wrongful loss in terms of Section 23 of I.P.C., and the person causing the wrongful loss is deemed to have acted dishonestly under Sections 24 and 403 I.P.C.

The certificates of candidates cannot be treated as transferable property to be retained by Management under the guise of recovering amounts as per the agreement/bond. The so-called agreement is not a valuable security creating rights in favor of Management. It can only be treated as an entrustment under Section 405 I.P.C., and non-return of the original certificate will be an offense under Section 406 IPC.

If an employee alleges that they have demanded the return of the certificates but the employer refuses, the employee is entitled to launch criminal prosecution against the employer.

Judicial Decisions on Certificate Retention

Justice K. Suguna in the Madurai Bench held in 2008 that academic certificates could not be termed 'goods' to enable educational institutions to withhold them. The Hon’ble High Court pointed out that the Supreme Court, in the R.D. Saxena vs. Balram Prasad Sharma (2000) case, had taken the view that a lien could be exercised only on marketable goods.

Extract of the Supreme Court Judgment

Supreme Court of India
R.D. Saxena vs Balram Prasad Sharma on 22 August 2000

We would first examine whether an advocate has a lien on the files entrusted to them by the client. Learned counsel for the appellant endeavored to base their contention on Section 171 of the Indian Contract Act, which reads thus: Bankers, factors, wharfingers, attorneys of a High Court, and policy-brokers may, in the absence of a contract to the contrary, retain, as security for a general balance of account, any goods bailed to them; but no other persons have a right to retain, as a security for such balance, goods bailed to them unless there is an express contract to that effect.

Files containing copies of the records (perhaps some original documents also) cannot be equated with the goods referred to in the section. The advocate keeping the files cannot amount to goods bailed. The word bailment is defined in Section 148 of the Contract Act as the delivery of goods by one person to another for some purpose, upon a contract that they shall be returned or otherwise disposed of according to the directions of the person delivering them, when the purpose is accomplished. In the case of litigation papers in the hands of the advocate, there is neither delivery of goods nor any contract that they shall be returned or otherwise disposed of. That apart, the word goods mentioned in Section 171 is to be understood in the sense in which that word is defined in the Sale of Goods Act. It must be remembered that Chapter-VII of the Contract Act, comprising sections 76 to 123, had been wholly replaced by the Sales of Goods Act, 1930. The word goods is defined in Section 2(7) of the Sales of Goods Act as every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Thus, goods to fall within the purview of Section 171 of the Contract Act should have marketability, and the person to whom it is bailed should be in a position to dispose of it in consideration of money. In other words, the goods referred to in Section 171 of the Contract Act are saleable goods. There is no scope for converting the case files into money, nor can they be sold to any third party.

The Court held that the reliance placed on Section 171 of the Contract Act has no merit.

Thus, send a legal notice through an Advocate to get the return of your certificates immediately, and upon failure to do so, file an FIR. After the certificates are seized by the police and produced before the court, make an application before the criminal court under Section 451 CrPC to have your certificates delivered on superdari. Of course, the court can be approached for the early seizure of certificates.

Regards

Sushil

From India, New Delhi
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