Dear Friends,
From my friend, I have come to know that The Bonded Labour Act has been abolished. A company or organisation cannot insist that any person sign any type of bond, and most people are realizing that it is not reasonable or proper to sign a bond. In my city, we have a similar case which has been published in the newspaper.
Now, my question is: How can an employer take any type of security to reduce manpower turnover without requiring a bond? Also, I would love to know if it is acceptable to hold someone's salary as a security deposit. Is there any provision in the law that allows a person to claim it before completing their contractual period?
Furthermore, if a person breaches the said bond, what actions can be taken by an organisation?
I hope to receive valuable answers from all of you.
Thank you in advance.
From India, Mumbai
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13From my friend, I have come to know that The Bonded Labour Act has been abolished. A company or organisation cannot insist that any person sign any type of bond, and most people are realizing that it is not reasonable or proper to sign a bond. In my city, we have a similar case which has been published in the newspaper.
Now, my question is: How can an employer take any type of security to reduce manpower turnover without requiring a bond? Also, I would love to know if it is acceptable to hold someone's salary as a security deposit. Is there any provision in the law that allows a person to claim it before completing their contractual period?
Furthermore, if a person breaches the said bond, what actions can be taken by an organisation?
I hope to receive valuable answers from all of you.
Thank you in advance.
From India, Mumbai
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Dear Viral,
Yes, The Bonded Labour Act has been abolished. But whether they are covered under the definition of Bonded Labour or not, it is a question mark. I am not able to to link them with the Bonded Labour Labour Act. However I am giving the definitions covered under the Bonded LAbour Act for your refrerence. If you can find some relevance than please let me know, so that I can further take up the issue to my legal consultant.
"2. Definitions. - In this Act, unless the context otherwise requires, --
a) "advance” means an advance, whether in cash or in kind, or partly in cashor partly in kind, made by one person (hereinafter referred to as the creditor) to another person (hereinafter referred to as the debtor);
(b) "agreement" means an agreement (whether written or oral, partly writtenand partly oral) between a debtor and creditor and includes an agreement providing for forced labour, the existence of which is presumed under any social custom prevailing in the concerned locality.
Explanation. --The existence of an agreement between the debtor and creditor is ordinarily presumed, under the social custom, in relation to the followingforms of forced labour, namely: -- Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti;
(c) "ascendant” or "descendant", in relation to a person belonging to a matriarchal society, means the person who corresponds to such expression in accordance with the law of succession in force in such society;
(d) "bonded debt,” means an advance obtained, or presumed to have been obtained, by a bonded labourer under, or in pursuance of, the bonded labour system;
(e) "bonded labour" means any labour or service rendered under the bonded labour system;
(f) "bonded labourer" means a labourer who incurs, or has, is presumed to have, incurred, a bonded debt;
(g) "bonded labour system" means the system of forced, or partly forced, labour under which a debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to the effect that,--
(i) in consideration of an advance obtained by him or by any of his lineal ascendants or descendants (whether or not such advance is evidenced by any document) and in consideration of the interest, if any, on such advance, or
(ii) in pursuance of any customary or social obligation, or
(iii) in pursuance of an obligation devolving on him by succession, or
(iv) for any economic consideration received by him or by any of his lineal ascendants or descendants, or
(v) by reason of his birth in any particular caste or community, he would—
(1) render, by himself or through any member of his family, or any person dependent on him, labour or service to the creditor, or for the benefit of the creditor, for a specified period or for an unspecified period, either without wages or for nominal wages, or
(2) forfeit the freedom of employment or other means of livelihood for a specified period or for an unspecified period, or
(3) forfeit the right to move freely throughout the territory of India, or
(4) forfeit the right to appropriate or sell at market value any of his property or product of his labour or the labour of a member of his family or any person dependent on him, and includes the system of forced, or partly forced, labour under which a surety for a debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to theeffect that in the event of the failure of the debtor to repay the debt, he would render the bonded labour on behalf of the debtor;
1[Explanation.-- For the removal of doubts, it is hereby declared that any system of forced, or partly forced labour under which any workman being contract labour as defined in clause (b) of sub-section (1) of section 2 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970), or an inter-State migrant workman as defined in clause (e) of sub-section (1) of section 2 of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (30 of 1979), is required to render labour or service in circumstances of the nature mentioned in sub-clause (1) of this clause or is subjected to all or any of the disabilities referred to in sub-clauses (2) to (4), is "bonded labour system" within the meaning of this clause.] "
Also can you please send me the cutting of the paper, because we also have the system of getting the bond agreement signed by the Fresh Engineers, and we are planning to review it.
Now comes the second part, it is still big question mark for the companies that how to reduce the manpower turnover ?
From India, Delhi
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Yes, The Bonded Labour Act has been abolished. But whether they are covered under the definition of Bonded Labour or not, it is a question mark. I am not able to to link them with the Bonded Labour Labour Act. However I am giving the definitions covered under the Bonded LAbour Act for your refrerence. If you can find some relevance than please let me know, so that I can further take up the issue to my legal consultant.
"2. Definitions. - In this Act, unless the context otherwise requires, --
a) "advance” means an advance, whether in cash or in kind, or partly in cashor partly in kind, made by one person (hereinafter referred to as the creditor) to another person (hereinafter referred to as the debtor);
(b) "agreement" means an agreement (whether written or oral, partly writtenand partly oral) between a debtor and creditor and includes an agreement providing for forced labour, the existence of which is presumed under any social custom prevailing in the concerned locality.
Explanation. --The existence of an agreement between the debtor and creditor is ordinarily presumed, under the social custom, in relation to the followingforms of forced labour, namely: -- Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti;
(c) "ascendant” or "descendant", in relation to a person belonging to a matriarchal society, means the person who corresponds to such expression in accordance with the law of succession in force in such society;
(d) "bonded debt,” means an advance obtained, or presumed to have been obtained, by a bonded labourer under, or in pursuance of, the bonded labour system;
(e) "bonded labour" means any labour or service rendered under the bonded labour system;
(f) "bonded labourer" means a labourer who incurs, or has, is presumed to have, incurred, a bonded debt;
(g) "bonded labour system" means the system of forced, or partly forced, labour under which a debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to the effect that,--
(i) in consideration of an advance obtained by him or by any of his lineal ascendants or descendants (whether or not such advance is evidenced by any document) and in consideration of the interest, if any, on such advance, or
(ii) in pursuance of any customary or social obligation, or
(iii) in pursuance of an obligation devolving on him by succession, or
(iv) for any economic consideration received by him or by any of his lineal ascendants or descendants, or
(v) by reason of his birth in any particular caste or community, he would—
(1) render, by himself or through any member of his family, or any person dependent on him, labour or service to the creditor, or for the benefit of the creditor, for a specified period or for an unspecified period, either without wages or for nominal wages, or
(2) forfeit the freedom of employment or other means of livelihood for a specified period or for an unspecified period, or
(3) forfeit the right to move freely throughout the territory of India, or
(4) forfeit the right to appropriate or sell at market value any of his property or product of his labour or the labour of a member of his family or any person dependent on him, and includes the system of forced, or partly forced, labour under which a surety for a debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to theeffect that in the event of the failure of the debtor to repay the debt, he would render the bonded labour on behalf of the debtor;
1[Explanation.-- For the removal of doubts, it is hereby declared that any system of forced, or partly forced labour under which any workman being contract labour as defined in clause (b) of sub-section (1) of section 2 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970), or an inter-State migrant workman as defined in clause (e) of sub-section (1) of section 2 of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (30 of 1979), is required to render labour or service in circumstances of the nature mentioned in sub-clause (1) of this clause or is subjected to all or any of the disabilities referred to in sub-clauses (2) to (4), is "bonded labour system" within the meaning of this clause.] "
Also can you please send me the cutting of the paper, because we also have the system of getting the bond agreement signed by the Fresh Engineers, and we are planning to review it.
Now comes the second part, it is still big question mark for the companies that how to reduce the manpower turnover ?
From India, Delhi
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Dear All,
I have also gone through the Bonded Labour Act. What I could gather after reading the act is that the employees who are willing to work in any organization and willingly sign any bond are not covered under the said act. The act was introduced to abolish the bonded labour system, which was in practice in rural areas, where zamindars used to keep these labourers without paying their dues.
Please shed more light on this issue.
Regards,
From India, Bangalore
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I have also gone through the Bonded Labour Act. What I could gather after reading the act is that the employees who are willing to work in any organization and willingly sign any bond are not covered under the said act. The act was introduced to abolish the bonded labour system, which was in practice in rural areas, where zamindars used to keep these labourers without paying their dues.
Please shed more light on this issue.
Regards,
From India, Bangalore
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Thank you for your responses, Rajeev and Vijay. Now I have some understanding. But what can we do if an employee leaves an organization before completing the bond? What type of case should we file?
In the recent case I am referring to, some of my friends have the opinion that the legality of a bond is questionable. According to our constitution, everyone is free to live. Moreover, if an organization has provided extraordinary training to an employee, then the organization has some legal rights to enforce or compel someone to not leave a job. Otherwise, nobody can prevent an employee from leaving a job.
What do you think?
From India, Mumbai
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In the recent case I am referring to, some of my friends have the opinion that the legality of a bond is questionable. According to our constitution, everyone is free to live. Moreover, if an organization has provided extraordinary training to an employee, then the organization has some legal rights to enforce or compel someone to not leave a job. Otherwise, nobody can prevent an employee from leaving a job.
What do you think?
From India, Mumbai
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I think usually in the case if the employer provides some training to the employee or sponsors the employee to enhance their qualifications, the company has full liberty to bind that employee to work with them for a certain time period. In the event of leaving before that time, the company can recover the costs incurred in the training or enhancement of the employee's qualifications.
From India, Delhi
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From India, Delhi
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yes..... Agree.... but if no training or any other facilities provided then....... How can company entitle to bound him/her???
From India, Mumbai
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From India, Mumbai
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That is the main thing Rajeev & being an HR we should aware of this........ kal ko uthke ko empolyee ne ulta case kar diya then what will happen...... that’s y I have shared it here.......
From India, Mumbai
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From India, Mumbai
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Yes.. Riya...... there is a provision..... One can not enforce anybody to stay in his org.. ya there are few exceptions also......like other acts........
From India, Mumbai
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From India, Mumbai
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Hi Viral,
My name is Abhay. I am doing my MBA in HR. I need some more information related to the bond. I also feel that if an organization is spending money on training their employees and developing their workforce, then it is natural for the organization to expect more efficient work and progress from their employees, rather than the employees leaving the organization after receiving training.
What do you say about it?
"Character is like a tree, and reputation is like a shadow. The shadow is what we think of, but the tree is the real thing." - Abraham Lincoln
From India, Chennai
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My name is Abhay. I am doing my MBA in HR. I need some more information related to the bond. I also feel that if an organization is spending money on training their employees and developing their workforce, then it is natural for the organization to expect more efficient work and progress from their employees, rather than the employees leaving the organization after receiving training.
What do you say about it?
"Character is like a tree, and reputation is like a shadow. The shadow is what we think of, but the tree is the real thing." - Abraham Lincoln
From India, Chennai
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We have implemented the concept of a bond in my previous organization, and we have successfully executed this. In the case of people leaving the organization without any notice or absconding from employment, we used to send them letters, hunt them, or talk to their current employer to ensure they respond to us.
We have ensured that individuals pay the bond amount of Rs. 2 lakhs, along with training charges, until their last day in the organization. This was achieved by having them sign a two-year service agreement with the company, duly endorsed by a guarantor. We also collected photocopies of documents worth Rs. 2 lakhs, such as land, plots, flats, buildings, or fixed deposits. Verification of the authenticity of these documents was conducted before confirming their appointment. If any of the formalities were not met, the candidate was not onboarded. Moreover, if a candidate was unable to provide any of the aforementioned documents, we would take an undated cheque for Rs. 2 lakhs from the employee.
Although this approach reduced turnover, individuals still found ways to leave the organization.
From India, Hyderabad
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We have ensured that individuals pay the bond amount of Rs. 2 lakhs, along with training charges, until their last day in the organization. This was achieved by having them sign a two-year service agreement with the company, duly endorsed by a guarantor. We also collected photocopies of documents worth Rs. 2 lakhs, such as land, plots, flats, buildings, or fixed deposits. Verification of the authenticity of these documents was conducted before confirming their appointment. If any of the formalities were not met, the candidate was not onboarded. Moreover, if a candidate was unable to provide any of the aforementioned documents, we would take an undated cheque for Rs. 2 lakhs from the employee.
Although this approach reduced turnover, individuals still found ways to leave the organization.
From India, Hyderabad
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1. Whether a bond is valid or not - No, a bond is not valid in terms of service. No act, principle of law, and jurisprudence support it and its concept. A bond is an act in terrorem just like a penalty (penalty is not recognized in India).
2. Employer spending money for development - In the eye of the law, the employer is spending his money for the improvement of his human resources for better quality of production or service and NOT for the individual role or its improvement. Therefore, the employer cannot come before the court and claim that it was done for the betterment of the employee. Another aspect in this matter is that the relationship. If you explain the sections of the Indian Evidence Act, you will find that where a relationship lies between two persons of dominant nature (Master-servant, employer-employee, teacher-student) in their respective field of work, the benefit of doubt goes to the weaker one.
3. Way out - Bond can be transformed into a service contract. Say you will work for this company for 5 years and will get the following benefits...... The benefit is that its breach is actionable in court and also punishable. It's legal since it comes within the contract act. I have implemented in my organization and it's ok. Any doubts... objections... counterclaims... advice?
Saikat Dhar
From India, Calcutta
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2. Employer spending money for development - In the eye of the law, the employer is spending his money for the improvement of his human resources for better quality of production or service and NOT for the individual role or its improvement. Therefore, the employer cannot come before the court and claim that it was done for the betterment of the employee. Another aspect in this matter is that the relationship. If you explain the sections of the Indian Evidence Act, you will find that where a relationship lies between two persons of dominant nature (Master-servant, employer-employee, teacher-student) in their respective field of work, the benefit of doubt goes to the weaker one.
3. Way out - Bond can be transformed into a service contract. Say you will work for this company for 5 years and will get the following benefits...... The benefit is that its breach is actionable in court and also punishable. It's legal since it comes within the contract act. I have implemented in my organization and it's ok. Any doubts... objections... counterclaims... advice?
Saikat Dhar
From India, Calcutta
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Dear Saikat Dhar and all my friends,
Thanks for your valuable opinion. My another query is if any employer has taken a bond from an employee and there is a clause for loyalty reward after completion of the bond. Now, in that case, if the employer refuses to pay that amount, what should the employee do against the employer? Can he file a suit to recover his money before the civil court? Or where else can he file the suit, and is there any time limit for that?
Thanks in advance and waiting for your valuable reply.
From India, Mumbai
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Thanks for your valuable opinion. My another query is if any employer has taken a bond from an employee and there is a clause for loyalty reward after completion of the bond. Now, in that case, if the employer refuses to pay that amount, what should the employee do against the employer? Can he file a suit to recover his money before the civil court? Or where else can he file the suit, and is there any time limit for that?
Thanks in advance and waiting for your valuable reply.
From India, Mumbai
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Hi All,
A very interesting topic to discuss... As discussed, the bonded labour system has been abolished, and no employee is bound by any contract to serve the company. However, if a bond is signed between an employee and an employer, creating a valid contract between the parties, which specifies that the employee has to pay the training cost if they leave the company within any specific/reasonable period, it is construed as a valid agreement.
The employee is required to pay back the training cost if they choose to break the bond. In this context, it is not bonded labour but rather a form of compensation for the loss incurred by a party.
Regards,
Suresh Ramalingam
From India, Mumbai
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A very interesting topic to discuss... As discussed, the bonded labour system has been abolished, and no employee is bound by any contract to serve the company. However, if a bond is signed between an employee and an employer, creating a valid contract between the parties, which specifies that the employee has to pay the training cost if they leave the company within any specific/reasonable period, it is construed as a valid agreement.
The employee is required to pay back the training cost if they choose to break the bond. In this context, it is not bonded labour but rather a form of compensation for the loss incurred by a party.
Regards,
Suresh Ramalingam
From India, Mumbai
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Dear Friends,
I believe we may be confusing "Bond" with the bonded labor act. The type of "Bond" we are discussing in the forum falls under the purview of simple agreement laws and is covered in Contract Law. A breach of such a bond/agreement can indeed lead to legal action under the Contract Act.
This is my opinion and understanding. Others are welcome to share their input on this.
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I believe we may be confusing "Bond" with the bonded labor act. The type of "Bond" we are discussing in the forum falls under the purview of simple agreement laws and is covered in Contract Law. A breach of such a bond/agreement can indeed lead to legal action under the Contract Act.
This is my opinion and understanding. Others are welcome to share their input on this.
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Dear Viral,
First of all, thanks a lot for posting a very interesting topic for discussion. I also believe that in the case where the Bonded Labour Act is abolished, we should clearly refer to it as an agreement or a contract instead of using the term "BOND." I hope you all agree with me.
Moving on to the issue of an employee leaving without informing the employer even before their period is over, I would suggest that we establish a clear contract in which we outline the consequences if he/she quits without notice. In such situations, it will depend on what you intend to recover from that specific employee based on the expenses incurred during their time with the company. I recommend having both monetary and non-monetary recovery measures in place for the employee. This approach may sometimes make it challenging for them to join another company.
I hope you all agree with my suggestions, and please continue to share your responses.
Regards,
Amith R.
From India, Bangalore
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First of all, thanks a lot for posting a very interesting topic for discussion. I also believe that in the case where the Bonded Labour Act is abolished, we should clearly refer to it as an agreement or a contract instead of using the term "BOND." I hope you all agree with me.
Moving on to the issue of an employee leaving without informing the employer even before their period is over, I would suggest that we establish a clear contract in which we outline the consequences if he/she quits without notice. In such situations, it will depend on what you intend to recover from that specific employee based on the expenses incurred during their time with the company. I recommend having both monetary and non-monetary recovery measures in place for the employee. This approach may sometimes make it challenging for them to join another company.
I hope you all agree with my suggestions, and please continue to share your responses.
Regards,
Amith R.
From India, Bangalore
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Viral,
It entirely depends on the clause how it is formatted. In most cases where such bonds are taken from employees, the copy is not given to the employees. Without the copy, how can an employee file the suit?
In the second case, if the employee does have the copy, you can't stop the employee from filing the suit for non-payment of the so-called loyalty bonus. Usually, such cases are only filed by the employee when they are not in service or have left the job with that company.
Regarding the time period, the employee should file the case as early as possible. If the employee is late in filing, there should be a valid reason for the delay that can convince the court. If the employee is late without a valid reason, the court may dismiss the suit.
"Dear Saikat Dhar and all my friends,
Thanks for your valuable opinions. My query is if an employer has taken a bond from an employee with a clause for a loyalty reward and then refuses to pay that amount after the bond's completion, what can the employee do against the employer? Can the employee file a suit to recover the money in the civil court? Where else can the suit be filed, and is there a time limit for that?
Thanks in advance, waiting for your valuable reply."
From India, Delhi
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It entirely depends on the clause how it is formatted. In most cases where such bonds are taken from employees, the copy is not given to the employees. Without the copy, how can an employee file the suit?
In the second case, if the employee does have the copy, you can't stop the employee from filing the suit for non-payment of the so-called loyalty bonus. Usually, such cases are only filed by the employee when they are not in service or have left the job with that company.
Regarding the time period, the employee should file the case as early as possible. If the employee is late in filing, there should be a valid reason for the delay that can convince the court. If the employee is late without a valid reason, the court may dismiss the suit.
"Dear Saikat Dhar and all my friends,
Thanks for your valuable opinions. My query is if an employer has taken a bond from an employee with a clause for a loyalty reward and then refuses to pay that amount after the bond's completion, what can the employee do against the employer? Can the employee file a suit to recover the money in the civil court? Where else can the suit be filed, and is there a time limit for that?
Thanks in advance, waiting for your valuable reply."
From India, Delhi
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As far as the time period is concerned, the employee should file the case as early as possible. If he is late in filing, there should be a valid reason for the delay in filing the suit, which can convince the court. If the employee is late in filing the case without any valid reason, the court may dismiss the suit.
Rajeev... As per my knowledge, the Limitation Act can condone any delay in legal proceedings, but there is no provision to file a suit after the time limit has passed. If anyone files the suit after the completion of the time limit, it cannot be condoned. Moreover, if an employee does not have a copy of the said bond, he/she can still file a suit. By filing a simple application, the court can order the company to submit the original bond to the court. This is not a significant issue.
If he/she is currently employed by the same company and files a suit, the relationship with the company will be in a precarious condition. At that time, what should he/she do, considering it's a matter of 60-70k? Please advise me.
From India, Mumbai
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Rajeev... As per my knowledge, the Limitation Act can condone any delay in legal proceedings, but there is no provision to file a suit after the time limit has passed. If anyone files the suit after the completion of the time limit, it cannot be condoned. Moreover, if an employee does not have a copy of the said bond, he/she can still file a suit. By filing a simple application, the court can order the company to submit the original bond to the court. This is not a significant issue.
If he/she is currently employed by the same company and files a suit, the relationship with the company will be in a precarious condition. At that time, what should he/she do, considering it's a matter of 60-70k? Please advise me.
From India, Mumbai
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Dear All,
I concur with the remarks of Rajeev. If the company has not incurred any expenditure on the training of that particular employee, then how can the company have the legal right to prevent him or her from leaving the organization? I believe that in this case, the employee has every legal right to resign.
Regards,
From India, Bangalore
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I concur with the remarks of Rajeev. If the company has not incurred any expenditure on the training of that particular employee, then how can the company have the legal right to prevent him or her from leaving the organization? I believe that in this case, the employee has every legal right to resign.
Regards,
From India, Bangalore
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Hi all,
Very interesting topic and giving a lot of information. Here, I present a live case:
One of my friends worked for a company for more than 11 years and left the company. Although he informed them about leaving, the employer threatened him, so he left the company without giving a resignation letter. He then joined his present employer. The previous employer also wrote a letter to the current employer, but it was ignored. Nothing happened to him until the previous employer deliberately issued a termination letter (there was also paper correspondence between the employee and the previous employer). Now he is comfortable with his present employer.
Can he get gratuity and transfer his PF to the present account? If he moves further, will there be any issues (such as a service certificate)? i.e., his termination letter speaks negatively about him in his future.
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Very interesting topic and giving a lot of information. Here, I present a live case:
One of my friends worked for a company for more than 11 years and left the company. Although he informed them about leaving, the employer threatened him, so he left the company without giving a resignation letter. He then joined his present employer. The previous employer also wrote a letter to the current employer, but it was ignored. Nothing happened to him until the previous employer deliberately issued a termination letter (there was also paper correspondence between the employee and the previous employer). Now he is comfortable with his present employer.
Can he get gratuity and transfer his PF to the present account? If he moves further, will there be any issues (such as a service certificate)? i.e., his termination letter speaks negatively about him in his future.
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Hi all,
I was recruited by WIPRO in India and came to onsite on assignment, serving in the USA for 2 and a half years. In total, I worked for WIPRO for 4 years. I resigned from WIPRO 2 months ago while at onsite in the USA. When I requested my experience letter, they mentioned that I did not provide the required 2 months notice period. In reality, I had given a 3-week notice period. Additionally, they are asking me to pay $10,000 for liquidity damages. You can read the rest of the post here: [Wipro Not Providing Experience Letter | Share Your Work Experience](http://www.workexp.com/2008/06/20/wipro-not-providing-experience-letter/)
From India, Madras
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I was recruited by WIPRO in India and came to onsite on assignment, serving in the USA for 2 and a half years. In total, I worked for WIPRO for 4 years. I resigned from WIPRO 2 months ago while at onsite in the USA. When I requested my experience letter, they mentioned that I did not provide the required 2 months notice period. In reality, I had given a 3-week notice period. Additionally, they are asking me to pay $10,000 for liquidity damages. You can read the rest of the post here: [Wipro Not Providing Experience Letter | Share Your Work Experience](http://www.workexp.com/2008/06/20/wipro-not-providing-experience-letter/)
From India, Madras
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Viral,
Now I think your main query is whether his/her suit is tenable or not due to the delay in filing the suit. Am I right?
My conclusion was based on the actual case dealt with, as I had faced the same situation in one of my earlier companies where a few employees filed a case after a gap of 6 years against the company. I managed to dismiss their petition on the grounds of late filing, but that was in the Labour Court.
I believe if we take up this matter as a case study with some actual factual data, then only we may be able to arrive at a solution. For example, is he/she still working in the same company? If not, how long has it been?
From India, Delhi
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Now I think your main query is whether his/her suit is tenable or not due to the delay in filing the suit. Am I right?
My conclusion was based on the actual case dealt with, as I had faced the same situation in one of my earlier companies where a few employees filed a case after a gap of 6 years against the company. I managed to dismiss their petition on the grounds of late filing, but that was in the Labour Court.
I believe if we take up this matter as a case study with some actual factual data, then only we may be able to arrive at a solution. For example, is he/she still working in the same company? If not, how long has it been?
From India, Delhi
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Rajeev, thank you for the concern.
No, dear, I have not received any feedback after starting this thread, and he/she is working in the same company. He/she has just completed his agreement period in March 2008, so it will be within the time limit. The main question is if he/she files a case against the employer, then it is certain that the employer will enforce him/her to leave the company at any cost. The amount is 60-70k, which he is entitled to. Now, he/she has asked me to give suggestions on what to do. It is certain that a court case will affect his/her current job, so what will be the practical way to collect that amount?
Please let me know if you need further assistance.
From India, Mumbai
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No, dear, I have not received any feedback after starting this thread, and he/she is working in the same company. He/she has just completed his agreement period in March 2008, so it will be within the time limit. The main question is if he/she files a case against the employer, then it is certain that the employer will enforce him/her to leave the company at any cost. The amount is 60-70k, which he is entitled to. Now, he/she has asked me to give suggestions on what to do. It is certain that a court case will affect his/her current job, so what will be the practical way to collect that amount?
Please let me know if you need further assistance.
From India, Mumbai
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Dear Friends,
I'm sorry to bring you back to the main question of this thread. In this discussion, I observed confusion between bonded labor, service contracts, and the word "bond." Please note that all these terms are completely different, remote, and nowhere similar to each other.
What is a Bond?
The bond we are discussing here is nothing but an Indemnity Bond (Sec-124 of the Indian Contract Act, 1872). It is entered into to make good the loss by the indemnifier to the individual in favor of whom the bond has been made. Now, the question of how the loss is to be calculated is answered in section 73 of the Indian Contract Act, which states the compensation or loss of damage caused by a breach of contract.
Regards
From India, Vadodara
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I'm sorry to bring you back to the main question of this thread. In this discussion, I observed confusion between bonded labor, service contracts, and the word "bond." Please note that all these terms are completely different, remote, and nowhere similar to each other.
What is a Bond?
The bond we are discussing here is nothing but an Indemnity Bond (Sec-124 of the Indian Contract Act, 1872). It is entered into to make good the loss by the indemnifier to the individual in favor of whom the bond has been made. Now, the question of how the loss is to be calculated is answered in section 73 of the Indian Contract Act, which states the compensation or loss of damage caused by a breach of contract.
Regards
From India, Vadodara
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Sorry if I sound rude here, but I am used to the HR policies (US) for the last 10 years, and I am surprised to see that an employer would charge an employee for leaving the company. Sounds stupid and weird.
If there is one thing an employer is charging for the employee leaving, then they should look at what can we do to keep the employee(s) rather than forcing them to stay with them for a period of time. As we all know, as long as you force someone to do a particular thing, they tend to find means to cheat and do it without your knowledge. We all did it while we were growing up, and some of us still do it...
It is absurd from the company's standpoint that they should even think of collecting money from people who leave the company. Shouldn't it tamper with their reputation in the employee community and make people stop applying to these companies? You cannot do that.
I personally think that this is the worst exploitation of the employee community.
Again, I am sorry if I hurt anyone's feelings or any company's policies. I believe in retaining the employee by means of showing them your values (and teaching them also), help them understand how they are better off with the company, and if they find something better than this, we are happy for them that they are growing but at the same time sorry to lose a great asset of the company.
Again, I am new to this group and also to the HR policies in India, so I am slowly trying to get into the groove.
From India, Kochi
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If there is one thing an employer is charging for the employee leaving, then they should look at what can we do to keep the employee(s) rather than forcing them to stay with them for a period of time. As we all know, as long as you force someone to do a particular thing, they tend to find means to cheat and do it without your knowledge. We all did it while we were growing up, and some of us still do it...
It is absurd from the company's standpoint that they should even think of collecting money from people who leave the company. Shouldn't it tamper with their reputation in the employee community and make people stop applying to these companies? You cannot do that.
I personally think that this is the worst exploitation of the employee community.
Again, I am sorry if I hurt anyone's feelings or any company's policies. I believe in retaining the employee by means of showing them your values (and teaching them also), help them understand how they are better off with the company, and if they find something better than this, we are happy for them that they are growing but at the same time sorry to lose a great asset of the company.
Again, I am new to this group and also to the HR policies in India, so I am slowly trying to get into the groove.
From India, Kochi
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Thanx cyberhr......for ur valued view..... Can u please throw some more light on the bond system or something like that in US?
From India, Mumbai
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From India, Mumbai
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Dear Cyber HR,
It's good to see that you are too emotional and human, but my friend, every coin has two sides. Now, what about the employer who invests resources to sharpen the skills of the employees, skills they were never able to gather from the schools and colleges operating in India, only for the same employee to leave the employer in a lurch?
I hope I'm sounding logical. Every case should be decided on its merits. Who are we to question the wisdom of the legislature and judiciary?
Regards
From India, Vadodara
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It's good to see that you are too emotional and human, but my friend, every coin has two sides. Now, what about the employer who invests resources to sharpen the skills of the employees, skills they were never able to gather from the schools and colleges operating in India, only for the same employee to leave the employer in a lurch?
I hope I'm sounding logical. Every case should be decided on its merits. Who are we to question the wisdom of the legislature and judiciary?
Regards
From India, Vadodara
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Well, I believe you are talking about India. It's there in other parts of the world as well. The US does not need these as they have plenty of available labor. There are Indians who stand in line come rain or high water to get the darn US visa, but we only have people who remain here counting off what has left to the US/UK/Aussie/UAE. Yes, I agree that we should concentrate more on keeping people with us. And this is one way we have seen to do so, albeit, a coarse one. Hope Cyber HR agrees?
From India, Gurgaon
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From India, Gurgaon
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In principle, the constitution protects the freedom of the citizens. Hence, taking a written bond to work for certain years with bond money deduction is normally opined to be a weak, illegal practice. However, it is being practiced with a hope to gain stability of employees nowadays under the pretext of training costs, which is valid only for very special training imparted on a specific technology transfer to occur or training abroad. Yet, employees do abscond, not caring for the security deposit or bond money as better opportunities are available compared to the oppressive practice.
From a human relations point of view, a healthy culture is to inculcate a culture and a corporate image where employees/people would feel proud to associate with the organization. The value system inspires them to be ethical and protect the promises made mutually on moral grounds with mutual respect without damaging the projects in progress and transferring the knowledge to the would-be successor effectively. The employer also respects the employee's right to growth and does not commercially pressurize them to continue longer except to quickly give proper charge and conclude the assignment suitably to enable taking it further. There is no point in bonding a person beyond their willingness through a commercial document without the heart. There is a daily chasing of absconding employees leaving a bad taste among the existing employees watching the show. We need to cultivate and build inspiring institutions with superordinate values and a shared vision which one would opt to live with meaningfully - like TATAS/INFOSYS, etc.
I hope this brings in the HRD/OD point of view apart from the legalities involved which are anyway bad in jurisprudence where the law protects the weaker section and promotes the spirit of freedom of the citizens. Bond/engage the employees emotionally, creating meaning for them rather than through a legal/commercial document presumed to harass in the future in an eventuality, which is most likely to occur in a market-forced dynamic, globalized economy with global opportunities.
Regards,
Kshantaram
From India, Ahmadabad
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From a human relations point of view, a healthy culture is to inculcate a culture and a corporate image where employees/people would feel proud to associate with the organization. The value system inspires them to be ethical and protect the promises made mutually on moral grounds with mutual respect without damaging the projects in progress and transferring the knowledge to the would-be successor effectively. The employer also respects the employee's right to growth and does not commercially pressurize them to continue longer except to quickly give proper charge and conclude the assignment suitably to enable taking it further. There is no point in bonding a person beyond their willingness through a commercial document without the heart. There is a daily chasing of absconding employees leaving a bad taste among the existing employees watching the show. We need to cultivate and build inspiring institutions with superordinate values and a shared vision which one would opt to live with meaningfully - like TATAS/INFOSYS, etc.
I hope this brings in the HRD/OD point of view apart from the legalities involved which are anyway bad in jurisprudence where the law protects the weaker section and promotes the spirit of freedom of the citizens. Bond/engage the employees emotionally, creating meaning for them rather than through a legal/commercial document presumed to harass in the future in an eventuality, which is most likely to occur in a market-forced dynamic, globalized economy with global opportunities.
Regards,
Kshantaram
From India, Ahmadabad
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Hi,
In my view, the position with regard to the service bond has not undergone any change. We can continue to ask our employees to enter into a service bond. The important point to be considered is that the bond should not be one-sided. It should not heavily lean in favor of the management to the disadvantage of the employee. It should stand the test of a valid contract entered into between the employer and the employee.
Cyril
From India, Nagpur
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In my view, the position with regard to the service bond has not undergone any change. We can continue to ask our employees to enter into a service bond. The important point to be considered is that the bond should not be one-sided. It should not heavily lean in favor of the management to the disadvantage of the employee. It should stand the test of a valid contract entered into between the employer and the employee.
Cyril
From India, Nagpur
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That's exactly correct; it's no longer legal to do so. Companies like IBM India are getting into problems for such reasons. [IBM India Employee bond rules and regulations | Share Your Work Experience](http://www.workexp.com/2008/06/25/ibm-claims-indian-employee-contracts-are-fair/) I am sure a host of Indian companies will soon be brought to court.
On another note: Does Infosys still make its freshers sign a bond?
From India, Madras
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On another note: Does Infosys still make its freshers sign a bond?
From India, Madras
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Hi, I am Vimal. I have a few doubts on this topic.
1) Is a bond only valid if it is signed before a notary or registered, or are agreements made on plain paper also valid?
2) Can the employer ask for documents (such as education certificates, mark lists) from the employee? Does the employee have protection against this?
From India, Pune
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1) Is a bond only valid if it is signed before a notary or registered, or are agreements made on plain paper also valid?
2) Can the employer ask for documents (such as education certificates, mark lists) from the employee? Does the employee have protection against this?
From India, Pune
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