Dear Shri. Sivasankaran,
1. Bond/Contract Agreement of employer/employee is require to be registered with appropirate Govt. Authority?
2. Who is approriate Govt. Authority?
3. How much is stam Duty is applicable
4. How much is Registration Charges, if any.
5. on completion of Agreement/Bond period, if we want to extend for further period than again duly extended
agreement is require to be registerd.
6 If Contract Agreement between employer/emplyee is unregistered then Court of Law will allow to file suit with
unregisted agreement(s)?
Will you please focus on above said issue.
with kind regards
Sanjeev
From India, Pune
51. Bond/Contract Agreement of employer/employee is require to be registered with appropirate Govt. Authority?
2. Who is approriate Govt. Authority?
3. How much is stam Duty is applicable
4. How much is Registration Charges, if any.
5. on completion of Agreement/Bond period, if we want to extend for further period than again duly extended
agreement is require to be registerd.
6 If Contract Agreement between employer/emplyee is unregistered then Court of Law will allow to file suit with
unregisted agreement(s)?
Will you please focus on above said issue.
with kind regards
Sanjeev
From India, Pune
Dear Mr Sanjeev
1. The service agreements/Bonds need not be registered with any government
authorities. To my knowledge there is no provision for registration.
2. Not applicable as there is no registration. However, the Stamp Paper must be
bought in the correct State. If your organisaton's registered office is in
Maharshtra and the employee is employed in Tamilnadu, the question will
arise which State's Stamp Paper one should use. Normally, the contract
will specify the jurisdiction where suits will be filed. This could be either
in the State where the Registered Office is located or where the employee
is located. Consult your legal Department or Legal advisor for this.
3. Rs 100/ stamp paper may be used for the Contract
4. There is no Registration Chrages
5. There must be valid reasons for extension of agreements. Some organisations
employ all senior level executives on Contract of three/five years where
renewal clause is applicable. Normally after the stipulated period, new
agreement need to be signed.No registration involved.
6. All service agreements will be covered under Indian Contracts Act. Legally
even oral agreements are possible!There has to be an agreement and it
requires proof. Document in written formats are easily accepted as evidence
under the Evidence Act.
T Sivasankaran
From India, Chennai
1. The service agreements/Bonds need not be registered with any government
authorities. To my knowledge there is no provision for registration.
2. Not applicable as there is no registration. However, the Stamp Paper must be
bought in the correct State. If your organisaton's registered office is in
Maharshtra and the employee is employed in Tamilnadu, the question will
arise which State's Stamp Paper one should use. Normally, the contract
will specify the jurisdiction where suits will be filed. This could be either
in the State where the Registered Office is located or where the employee
is located. Consult your legal Department or Legal advisor for this.
3. Rs 100/ stamp paper may be used for the Contract
4. There is no Registration Chrages
5. There must be valid reasons for extension of agreements. Some organisations
employ all senior level executives on Contract of three/five years where
renewal clause is applicable. Normally after the stipulated period, new
agreement need to be signed.No registration involved.
6. All service agreements will be covered under Indian Contracts Act. Legally
even oral agreements are possible!There has to be an agreement and it
requires proof. Document in written formats are easily accepted as evidence
under the Evidence Act.
T Sivasankaran
From India, Chennai
Dear Seniors,
i'm having some query.. If company asks the employee to leave the job on so & so date, then for what company would be responsible????? Means either company has to pay 3 months salary to the employee or notice period for 2 months...
From India, Pune
i'm having some query.. If company asks the employee to leave the job on so & so date, then for what company would be responsible????? Means either company has to pay 3 months salary to the employee or notice period for 2 months...
From India, Pune
If the Company asks a person to submit his papers, and the employees gives his resignation, legally it is a simple resignation.
If it is a legal resignation, then the employee has to give notice and if he gets relieved earlier, then legally the Company can ask him to pay the shortfall in Notice Period.
However, generally when an employee is asked to resign, some understandingg is reached regarding the date of relieving and the payments to be made. Wherever I have handled cases like this, we have offered salaries for three to six months depending on the seniority and the length of service.
Recovring any money from the employee who has been asked to go against Notice Period is not fair Normally two options are followed
1. Relieve him the same day but give him three months notice pay/or one months notice pay
2. Keep him on roll for a maximum period of three months with salary to enable him to get a suitable job. Relieve him on the day of his choice once he gets a job within three months./pne month as the case may be.Do not adjut leave against this period
I am recommedning these practices where the employee is asked to go on performance and not on integrity Option 2 is preferred as the employee can search for a job claiming that he is still in employment
Sivasankaran
From India, Chennai
If it is a legal resignation, then the employee has to give notice and if he gets relieved earlier, then legally the Company can ask him to pay the shortfall in Notice Period.
However, generally when an employee is asked to resign, some understandingg is reached regarding the date of relieving and the payments to be made. Wherever I have handled cases like this, we have offered salaries for three to six months depending on the seniority and the length of service.
Recovring any money from the employee who has been asked to go against Notice Period is not fair Normally two options are followed
1. Relieve him the same day but give him three months notice pay/or one months notice pay
2. Keep him on roll for a maximum period of three months with salary to enable him to get a suitable job. Relieve him on the day of his choice once he gets a job within three months./pne month as the case may be.Do not adjut leave against this period
I am recommedning these practices where the employee is asked to go on performance and not on integrity Option 2 is preferred as the employee can search for a job claiming that he is still in employment
Sivasankaran
From India, Chennai
Ya sir,
Definately I agree with you. but if company agrees to pay leaves to that employee while in notice period, then???? Cause the case was that, company neither given the notice to that employee on paper nor given the deadline to that employee.. Management said that you can take maximum two months to get an offer from another company, if he gets the same he can resign on an immediate basis. means its mutual understanding of the management.
From India, Pune
Definately I agree with you. but if company agrees to pay leaves to that employee while in notice period, then???? Cause the case was that, company neither given the notice to that employee on paper nor given the deadline to that employee.. Management said that you can take maximum two months to get an offer from another company, if he gets the same he can resign on an immediate basis. means its mutual understanding of the management.
From India, Pune
Dear Mr Ajaikumar,
In the instant case it will be appropriate for you to write to the person concerned that as an employee of the company it was incubent upon him either to serve notice or pay salary in lieu of notice in terms of his letter of appointment and advise him to comply with the provisions failing which you will be obliged to withhold his dues equivalent to the salary for the notice period as also dues, if any. In the event if he chooses either not to reply or refusing to complying your advice, you can withhold payments as referred above.
Please be more careful in recruiting employees in future and also add a bond to ensure that such events do not recur.
As a matter of fact bonds have the force of law still most of the employers prefer not to enforce the same in order to save avoidable cost and time, both do not work out to be very productive with particular reference to the private sector. Yet people have fear of law and will avoid violating the bond.
Nothing more seems practicable in this case.
Regards
S.K.Johri
From India, Delhi
In the instant case it will be appropriate for you to write to the person concerned that as an employee of the company it was incubent upon him either to serve notice or pay salary in lieu of notice in terms of his letter of appointment and advise him to comply with the provisions failing which you will be obliged to withhold his dues equivalent to the salary for the notice period as also dues, if any. In the event if he chooses either not to reply or refusing to complying your advice, you can withhold payments as referred above.
Please be more careful in recruiting employees in future and also add a bond to ensure that such events do not recur.
As a matter of fact bonds have the force of law still most of the employers prefer not to enforce the same in order to save avoidable cost and time, both do not work out to be very productive with particular reference to the private sector. Yet people have fear of law and will avoid violating the bond.
Nothing more seems practicable in this case.
Regards
S.K.Johri
From India, Delhi
Dear Thiru Sivasankaran,
Subject - Re: Notice Period OR Salary in lieu
on the said topic you have suggested to following 2 points.
1. Amount due to you from the company ( Include salary if any. Leave encashment, etc)
2. Amount due from him Calculate the Notice period amount
and further you have Suggested that:
Inform that he has to make the payment to the company as indicated If he pays, it is good. If he does not pay, just keep sending reminders every month for next six months If you are lucky he may pay. If he does not pay, it will be forgotten over six months
In this scenario, will you please focus on following queries.
1. If the recovery amount is inadequate to amount of Notice period then can we recover it from PF/Gratuity amount.
2. After Six month can we retain balance amout of his full n final dues with us or we have to submit to Welfare fund of the concerned state Government, as the left employee is not agree for deduction we made from his F-Final settlement.
With kind regards.
Sanjeev
From India, Pune
Subject - Re: Notice Period OR Salary in lieu
on the said topic you have suggested to following 2 points.
1. Amount due to you from the company ( Include salary if any. Leave encashment, etc)
2. Amount due from him Calculate the Notice period amount
and further you have Suggested that:
Inform that he has to make the payment to the company as indicated If he pays, it is good. If he does not pay, just keep sending reminders every month for next six months If you are lucky he may pay. If he does not pay, it will be forgotten over six months
In this scenario, will you please focus on following queries.
1. If the recovery amount is inadequate to amount of Notice period then can we recover it from PF/Gratuity amount.
2. After Six month can we retain balance amout of his full n final dues with us or we have to submit to Welfare fund of the concerned state Government, as the left employee is not agree for deduction we made from his F-Final settlement.
With kind regards.
Sanjeev
From India, Pune
1. You can not recover from PF. ( Recovery from PF is a cumbersome process and generally not possible}
2. You can recover from Gratuity if he is entitled to the same
3. Six months is just a date i mentioned. It is better to close all accounts before the close of the financial year. If any amount is due to him and if he is falling under the definition of employee under Welfare Fund, then you need to deposit after three years. I am not explaining all details of the Act here Just read the Act
4, I am not explaining all possible scenario But have this as a guidline
1. Salary due to the employee
2. Encashment of Leave if any
3. Any other payment due to him like LTA etc
4. Any Bonus Payable to the Employee
5. Any incentive Payable
6. Gratuity Payable
Total Payable to the Employee
1. Any advance amount to be recovered
2. Any tour advance pending
3. Income Tax
4. Shortfall of Notice Pay
Total Recoverable from the Employee
Please note that shortfall of notice should be adjusted at the end after adjusting statutory deductions and advances
Please note that this is a guideline and you can tailormake this to suit your organisation's requirement
Thanks
T sivasankaran
From India, Chennai
2. You can recover from Gratuity if he is entitled to the same
3. Six months is just a date i mentioned. It is better to close all accounts before the close of the financial year. If any amount is due to him and if he is falling under the definition of employee under Welfare Fund, then you need to deposit after three years. I am not explaining all details of the Act here Just read the Act
4, I am not explaining all possible scenario But have this as a guidline
1. Salary due to the employee
2. Encashment of Leave if any
3. Any other payment due to him like LTA etc
4. Any Bonus Payable to the Employee
5. Any incentive Payable
6. Gratuity Payable
Total Payable to the Employee
1. Any advance amount to be recovered
2. Any tour advance pending
3. Income Tax
4. Shortfall of Notice Pay
Total Recoverable from the Employee
Please note that shortfall of notice should be adjusted at the end after adjusting statutory deductions and advances
Please note that this is a guideline and you can tailormake this to suit your organisation's requirement
Thanks
T sivasankaran
From India, Chennai
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