Dear Members/Experts/Professionals,
Please guide me in addressing my issue.
From 10th Jan 2005 to 9th July 2010, I was employed at ABC, a society registered under the State Society Registration Act. From 10th July 2010, I was transferred to XYZ Pvt Ltd, an NBFC, a separate legal entity. During my tenure at ABC, I was made to sign an Employment Bond of Rs 1 lakh with ABC for 5 years on 25.01.2010. This Employment bond becomes automatically null and void with my transfer from ABC to XYZ Pvt Ltd. The transfer was made at the instance of the Owner.
The Owner of both ABC and EFG is the same. Under these two organizations, I have been working for 9 years. From the last week of December 2013, as per my request, I was transferred to my Home State, but my salary was reduced by 1/3. As this was not viable, on 24th March 2014, I submitted my resignation without serving any notice period. On 14th July 2014, my Final Settlement, along with the Experience Certificate and Relieved Letter, was released from my last employer, i.e., XYZ Pvt Ltd.
The issue is that in the Final Settlement, they have not incorporated Bonus and Leave Encashment. Instead of adjusting the Notice period deduction with leave encashment, they have deducted one Month Salary Directly. Even though the Final Settlement was released from XYZ Pvt Ltd, they have deducted Rs 50k as the Bond amount that was signed with ABC. Gratuity and EPF have been released.
Please let me know the legal validity of the deduction of the Bond from the 2nd company based on the bond signed with the 1st organization and how to take up the matter and to whom I should approach for the refund of the deduction of the Bond Amount and payment of Bonus and Leave Encashment.
For clarity, the Employment bond is reproduced below:
BOND
LET IT BE KNOWN TO ALL that I, CSD, son of CSS, a permanent resident of ZZZZ, (hereinafter called the employee) bind myself to ABC, an existing Organization within the meaning of the XYZ Registration Act, 19XX, having its Head Office at XXXX (hereinafter called the employer) in the sum amounting to Rs 1 Lakh only payable to the said employer or its successor for which payment I bind myself and successors on this 25th Jan 2010.
NOW THIS BOND OF SECURITY WITNESSES AS FOLLOWS:-
1. That the employer has agreed to employ the aforementioned employee as Sr. Assistant in the aforementioned Organization (ABC) and in consideration whereof the aforementioned employee is executing this bond in the sum of Rs 1 Lakh only and subject to such other conditions as are prescribed hereunder and for the due discharge of his or her duties as the Sr. Assistant by the employer for a continuous period of Five Successive years with effect from the date of execution of this present bond.
2. That, in addition to the aforementioned binding on the employee, he or she is also bound to have no objection as and when the employer (ABC) has forfeited all or any of the service benefits such as EPF/Allowance/Gratuity, etc., guaranteed to the employee by the employer during the course of his or her employment granted within the binding stipulated successive period.
Now this bond has been executed with the condition that if the said employee discharges his or her duties faithfully for the benefit of the aforementioned employer within the aforementioned bond period, then the above-written bond shall be void and ineffective; otherwise, it shall have full force upon the aforementioned employee.
Signature of Employer
Signature of Employee
Thank you,
CSD
From India, Patna
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Please guide me in addressing my issue.
From 10th Jan 2005 to 9th July 2010, I was employed at ABC, a society registered under the State Society Registration Act. From 10th July 2010, I was transferred to XYZ Pvt Ltd, an NBFC, a separate legal entity. During my tenure at ABC, I was made to sign an Employment Bond of Rs 1 lakh with ABC for 5 years on 25.01.2010. This Employment bond becomes automatically null and void with my transfer from ABC to XYZ Pvt Ltd. The transfer was made at the instance of the Owner.
The Owner of both ABC and EFG is the same. Under these two organizations, I have been working for 9 years. From the last week of December 2013, as per my request, I was transferred to my Home State, but my salary was reduced by 1/3. As this was not viable, on 24th March 2014, I submitted my resignation without serving any notice period. On 14th July 2014, my Final Settlement, along with the Experience Certificate and Relieved Letter, was released from my last employer, i.e., XYZ Pvt Ltd.
The issue is that in the Final Settlement, they have not incorporated Bonus and Leave Encashment. Instead of adjusting the Notice period deduction with leave encashment, they have deducted one Month Salary Directly. Even though the Final Settlement was released from XYZ Pvt Ltd, they have deducted Rs 50k as the Bond amount that was signed with ABC. Gratuity and EPF have been released.
Please let me know the legal validity of the deduction of the Bond from the 2nd company based on the bond signed with the 1st organization and how to take up the matter and to whom I should approach for the refund of the deduction of the Bond Amount and payment of Bonus and Leave Encashment.
For clarity, the Employment bond is reproduced below:
BOND
LET IT BE KNOWN TO ALL that I, CSD, son of CSS, a permanent resident of ZZZZ, (hereinafter called the employee) bind myself to ABC, an existing Organization within the meaning of the XYZ Registration Act, 19XX, having its Head Office at XXXX (hereinafter called the employer) in the sum amounting to Rs 1 Lakh only payable to the said employer or its successor for which payment I bind myself and successors on this 25th Jan 2010.
NOW THIS BOND OF SECURITY WITNESSES AS FOLLOWS:-
1. That the employer has agreed to employ the aforementioned employee as Sr. Assistant in the aforementioned Organization (ABC) and in consideration whereof the aforementioned employee is executing this bond in the sum of Rs 1 Lakh only and subject to such other conditions as are prescribed hereunder and for the due discharge of his or her duties as the Sr. Assistant by the employer for a continuous period of Five Successive years with effect from the date of execution of this present bond.
2. That, in addition to the aforementioned binding on the employee, he or she is also bound to have no objection as and when the employer (ABC) has forfeited all or any of the service benefits such as EPF/Allowance/Gratuity, etc., guaranteed to the employee by the employer during the course of his or her employment granted within the binding stipulated successive period.
Now this bond has been executed with the condition that if the said employee discharges his or her duties faithfully for the benefit of the aforementioned employer within the aforementioned bond period, then the above-written bond shall be void and ineffective; otherwise, it shall have full force upon the aforementioned employee.
Signature of Employer
Signature of Employee
Thank you,
CSD
From India, Patna
Acknowledge(0)Amend(0)
This bond itself is illegal and does not have any validity in a court of law. Your case is totally different as they have transferred you to another company which was owned by them. It is illegal, and please file a case under the Payment of Wages Act with the labor department as you were a senior assistant and you come under the purview of the labor department.
Regards,
From India, Delhi
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174Regards,
From India, Delhi
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