LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

saurabh (Technical Officer)     26 August 2013

Want to break the service agreement

Hi everyone..

I'm currently working at Andhra Bank as a technical officer. I've started since just six months back. I don't like the work culture and the stupid transfers e.g. a north Indians is transferred to a Village branch of Andhra Pradesh. This is a problem for both the customer and bank, and long working hours as the bank is always running short of staff. Work place also seems to be a scary place. You're even scared to ask them for leaving 15 minutes early. It's like a nursery school. Six months have been long enough, I don't think I can continue here. But I have a service agreement of 3 years and amount 2 lacs. Is there a way out?

 

Regards

Saurabh



Learning

 4 Replies

Kolla Gangadhar (Practicing Advocate since 1986)     26 August 2013

Service Agreement is for 3 year and in lieu of that 2 lacs must be paid. There  is no way out you are bound by Service Agreement.

Kumar Doab (FIN)     27 August 2013

Mr. Gangadhar has given valuable advice. Kindly follow it.

Employee should always go thru all service related regulations, rules preferably before joining and before taking any decision.

Incidentally Bank’s have Employees Unions and all documents are available on Employee’s and Union portals.

It is your first posting. You may look into rules of the bank and find out ‘What is your Parent state’ now. It appears this posting is given for exposure to rural area.

Before you initiate parleys with company you must ensure to get on record in writing what exactly is to be done by you before and after you tender the resignation and making the payment………………. and what documents you want and should get from the company……………………

Even if you pay the liquidated damages bank shall ask you to serve full notice period.

If you want to get a waiver you may try.

You may also explore the possibilities of pro rated payment of liquidated damages.

Your lawyer and employees union of the bank can help you to understand the nuances of the matter after looking into all of your documents.

There are guidelines for posting and transfer, which should be available at the Bank’s, Bank Employee’s union website. Bank like Union bank of India has taken into consideration the concept of ‘Parent State’, ‘Next Nearest State’. Employees outside parent state are considered for transfer back to their parent state after 3Years.

Still you must have seen that people from South India are located in North India and from North India in South India.

The hidden/unspoken/unwritten strategy could be that the employee won’t have social circle, and nothing else to do than to work for the bank only. The employee is not expected to complain for long work hours………………….

If you are not inclined to pay and adhere to the internal policies of the bank, you shall see that bank will become rigid and adamant.

 

 

 

 

If you decide to agitate:

Before you proceed on your own do your home work and gather some written and favorable record to suit you in the long run, that can prove employer unworthy of being employed with.

If you are forced to work for long and extended work hours you should have favorable record……………..like when the tasks were handed over to you………………….when the tasks should have been handed over to you………………….and at what time you were able to complete the tasks………………………and at what time you left the bank.

Mark the timings and keep the copies.

If the matter lands up in court of law the court of law shall decide the reasonableness of the matter and reasonable amounts if any to be paid.

Litigation can be stressful and lengthy for some of the employees.

Consult elders in the family and your lawyer and union leaders too.

The counsel of an experienced lawyer and seasoned trade union leaders shall help you. 

 

 

saurabh (Technical Officer)     02 September 2013

Gangadhar ji and Kumar Sahab: Thank you for your feedback. Your comments make one thing pretty clear that there's now way to escape this service agreement. I had one more question. What if I demand for Demotion? I'm a scale 2 officer, (direct recruitment through campus placement) what if I ask them to make me a clerk? Am I still liable to pay the bond amount? After all I'm not leaving the organization! Is such kind of proposal acceptable at first place?

Kumar Doab (FIN)     02 September 2013

 

You may go thru another similar thread posed by another bank employee at the following link:

 

 

https://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp#.UiRAe9KAqWM

and post some more information.

Or you may relate your matter to this thread and approach your lawyer with copies of all docs on record ad proceed under expert advice of your lawyer.

 

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register