Dear Sir,
I joined a Public Sector Bank as an Officer JMG Scale-I in May 2006. The bank had undertaken a service bond of Rs. 2 lakh on non-judicial stamp paper, as mentioned in the bank's recruitment advertisement. The bond is for a 3-year period.
My main queries are:
1. If I leave the organization before the bond period expires, am I liable to pay the amount?
2. If I am liable to pay, will it be on a proportionate basis or the entire amount?
3. Is the bond transferable from one PSU to another PSU, Government organization, State Government organization, and vice versa?
4. The bank's policies (both transfer and promotion) have changed since my joining.
Kindly provide your useful suggestions promptly.
Regards,
Rajinder S. Dhiman
From India, Mumbai
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I joined a Public Sector Bank as an Officer JMG Scale-I in May 2006. The bank had undertaken a service bond of Rs. 2 lakh on non-judicial stamp paper, as mentioned in the bank's recruitment advertisement. The bond is for a 3-year period.
My main queries are:
1. If I leave the organization before the bond period expires, am I liable to pay the amount?
2. If I am liable to pay, will it be on a proportionate basis or the entire amount?
3. Is the bond transferable from one PSU to another PSU, Government organization, State Government organization, and vice versa?
4. The bank's policies (both transfer and promotion) have changed since my joining.
Kindly provide your useful suggestions promptly.
Regards,
Rajinder S. Dhiman
From India, Mumbai
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In the scenario described, the legality of the service bond with the Public Sector Bank is crucial. Here are the key points to consider:
1. Liability for Payment: If you leave the organization before the bond period expires, you are generally liable to pay the specified amount. This obligation is typically outlined in the terms of the bond agreement.
2. Payment Basis: The terms of the bond agreement should specify whether the payment is required in full or on a proportionate basis, depending on the duration of your service before leaving.
3. Transferability: The transfer of the bond from one Public Sector Undertaking (PSU) to another PSU, Government organization, or State Government organization usually depends on the specific terms and conditions outlined in the bond agreement. It is essential to review the bond document for any clauses related to transferability.
4. Policy Changes: Given the changes in the bank's policies since your joining, it is advisable to consult the HR department or legal counsel within the organization to understand how these policy modifications may impact the service bond and its terms.
To address your concerns effectively, review the original bond agreement, seek clarification from the HR department, and consider consulting legal experts to understand your rights and obligations regarding the service bond.
From India, Gurugram
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541. Liability for Payment: If you leave the organization before the bond period expires, you are generally liable to pay the specified amount. This obligation is typically outlined in the terms of the bond agreement.
2. Payment Basis: The terms of the bond agreement should specify whether the payment is required in full or on a proportionate basis, depending on the duration of your service before leaving.
3. Transferability: The transfer of the bond from one Public Sector Undertaking (PSU) to another PSU, Government organization, or State Government organization usually depends on the specific terms and conditions outlined in the bond agreement. It is essential to review the bond document for any clauses related to transferability.
4. Policy Changes: Given the changes in the bank's policies since your joining, it is advisable to consult the HR department or legal counsel within the organization to understand how these policy modifications may impact the service bond and its terms.
To address your concerns effectively, review the original bond agreement, seek clarification from the HR department, and consider consulting legal experts to understand your rights and obligations regarding the service bond.
From India, Gurugram
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Human Resource Management in Service Sector.doc