Hi, I have joined a company one month back. The company is collecting one month's CTC in the form of a security deposit from its employees who join the company with a condition that the employee has to work for at least one year with the company. If the employee leaves before one year, the security deposit will be forfeited, and management will not refund the money. Is there any way to get this money back? The employee has to sign a paper as a bond, although it is not on stamp paper.
Please help.
Raj Joshi
From India
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Please help.
Raj Joshi
From India
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Hi,
Please check if they are getting signed on a paper or draft promissory note. The terms of employment between an employee and the company, including the security deposit amount, are part of a private contract; hence, they cannot be contested. Therefore, you may not be able to get the money back in case you leave the services within the stipulated time.
Kind regards,
Dayanand L. Guddin
From Singapore, Singapore
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31Please check if they are getting signed on a paper or draft promissory note. The terms of employment between an employee and the company, including the security deposit amount, are part of a private contract; hence, they cannot be contested. Therefore, you may not be able to get the money back in case you leave the services within the stipulated time.
Kind regards,
Dayanand L. Guddin
From Singapore, Singapore
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Dear [Employer],
It is an unfair labor practice to collect one month's CTC in the form of a security deposit from employees who join the company with the condition that the employee has to work for at least one year. If an employee leaves before completing one year, the security deposit will be forfeited, and management will not refund the money. Therefore, you can point out this illegality and first send a registered letter (not email). If your employer does not comply, you can take legal action through a local lawyer.
With Regards,
Email: rajanassociates@eth.net
Mobile: 9025792684
From India, Bangalore
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It is an unfair labor practice to collect one month's CTC in the form of a security deposit from employees who join the company with the condition that the employee has to work for at least one year. If an employee leaves before completing one year, the security deposit will be forfeited, and management will not refund the money. Therefore, you can point out this illegality and first send a registered letter (not email). If your employer does not comply, you can take legal action through a local lawyer.
With Regards,
Email: rajanassociates@eth.net
Mobile: 9025792684
From India, Bangalore
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Bond of Employment.doc
Bond in employment.pdf