commonman (employee) 17 September 2011

Can bank guarantee be got back before the period?

I have deposited money in a bank and given bank guarantee to the company I am working at. The bank guarantee letter states that if the employee leaves the company before the period mentioned in the bank guarantee the amount will be transferred to the comapany's account immediately. The bank has given the guarantee by way of a letter mentioning the above said condition.

The bank guarantee is for a period of 2 years and more than 1 year is completed. I have asked my company to reconsider my case and release my bank guarantee. The company is asking to deposit all my original marks cards with it. What other way can I give guarantee to the company other than depositing original marks cards with it. Is it a viable option?

What is the procedure to be followed for release of bank guarantee from the bank?

what are the precautions to be taken by me ?

Reply Follow

3 Replies

Isaac Gabriel (Advocate) 17 September 2011

If the purpose of issue is over, you can get it back and surrender.

V. VASUDEVAN (LEGAL COUNSEL) 17 September 2011

The bank guarantee process in itself is a unfair term of employment. However, needs to know the specific terms of employment and the letter of bank guarantee given for proper advice. Demanding the original certificates is again illegal and need not be accepted

vasudevan

(Guest)

Deposit of certificates of qualification is not a safe method for your career. At any time, if you get some attractive employment, you won't be able to get those certificates from your company easily. Although the bank guarantee in liu of employment is not a fair process on the part of the company, yet, it is better to wait for completion of your bonded period before you resign. You will have to compromise on your position, if could not take due care while giving a bank guarantee at the time of joining.