Service bond
Vikram
(Querist) 15 April 2014
This query is : Resolved
Hi All
Please help me, I was looking for a gov. job from last 3 years but didn't succeed.
Now I am working in an MNC and I have signed a service bond under arbitration Act 1996, with my MNC for 2 Lacs or 2 years, working from last six months, now i got the result of my Interview and get selected in PSU.
Will i have to pay to the company the bond amount. And if i quite now, do i also need to pay 3 three month's salary to co. (co. policy) along with 2 lacs, or only 2 lacs will suffice.
Company has spent substential amount on my training(not any skill development), nothing is bad with MNC job no issue, but I want to move to PSU and got the chance now, i can't try again for the PSU job due to age factor as well as for general category it's hard to get the PSU jobs.
Please advice me what to do, Am i bound to pay?
Guest
(Expert) 15 April 2014
You will have to compromise with your position by either paying bond amount plus notice period pay (three months' salary) or to forget about the PSU job.
The bond amount represents to your training expenses, while service during notice period or pay in lieu of notice period is your normal condition of resignation from service.
Devajyoti Barman
(Expert) 15 April 2014
Yes, you are bound by Bond agreement.
Choose any of the options.
Rajendra K Goyal
(Expert) 15 April 2014
Choice is yours, either to pay or forget the PSU job.
Vikram
(Querist) 15 April 2014
But what if i am not able to pay, not even my family, we are from lower middle class, can't I go for psu ?
Advocate. Arunagiri
(Expert) 15 April 2014
You can request your current employer to give you some time to pay the dues to him.
Negotiate with them for reduction of dues.
Give an undertaking and schedule of payments.
Any employer will understand and will help you if you show the good gestures.
Kumar Doab
(Expert) 15 April 2014
If you agree to tender liquidated damages stated in Bond, notice pay then negotiate properly in writing, demand and get concurrence in writing to get proper acceptance of resignation, relieving letter with good comments on conduct and performance (avoid without comments and of course any adverse comment, so that you are not affected in BGV/reference check if conducted in future ), service certificate, NOC/NDC, FNF statement/settlement as per correct FNF statement, Form16 as per correct FNF statement, attested copies of PF withdraw/transfer forms…………etc.
Download HR policy, service rules and regulations, stated and referred to in appointment letter, certified standing orders/model standing orders if applicable to establishment and extended to your designation, appreciation certificates, performance data and any other document that may be relevant……………………….NOW as later you may not get these.
The MNC may have its internal policy to not to issue any document especially relieving letter, if employee separates during BOND.
Show all these documents to elders in the family, competent and experienced well wishers, lawyer/law firm, be well informed and negotiate properly.
Since there is an Arbitration Clause too, in BOND you must get it examined from a competent and experienced labor consultant/service lawyer.
It shall be proper to conduct thorough survey on work culture, service conditions, ranking, conditions like BOND etc, HR practices from market and employees of future employer be it PSU………………………..and take a qualified decision.
You have also stated that Training provided to you did not add any skill and obviously it is not without any reason!
If the training was only to manage say………………… the counters of employer, then employer may not necessarily succeed in claim of liquidated damages!
However let your lawyer that has examined the documents and inputs from you opine finally on the matter.
Apply your skills to get properly relieved if you want to join this PSU.
The HR, Line Managers won't let you go easily as they have their jobs to defend.
Vikram
(Querist) 15 April 2014
Thank you so much Kumar Doab and all members for posting your replies on my query in such a short time.
T. Kalaiselvan, Advocate
(Expert) 15 April 2014
