Service bond
sudhakar dash
(Querist) 11 December 2015
This query is : Resolved
sir i have joined andhra bank as a probationary officer in may 2015 and executed a service bond of rs 200000 or to serve for 3 years ....now i am selected in ssc in ministry of external affairs and want to leave the bank.....i have given notice to leave the bank on 16-11-2015 and gave resignation on 03-12-2015 requesting to relieve me on 17-12-2015...
the are saying that i have to pay 200000 rs and also 3 months salary for notice period they provided me the standard resignation form on 08-12-2015 and said that notice period will be counted from that date ....is it fair???
in bond also it is said that if i have to resign i have to give 3 months notice and if they will terminate my services they will give only one months notice..
is it fair?????
the bank has spent 21060 rs on me as TA & DA for training of 6 days in hyderabad and 6 days in visakhapatnam....
is it fair to ask whole bond amount along with 3 months salary when they have spent only 21060 rs on me....
please guide i am from a lower middle class
family and can't repay such amounts....
the bond attached...
P. Venu
(Expert) 12 December 2015
Service bond is enforceable only if the Bank has incurred any expenses towards some specialised training. They cannot unilaterally enforce the Bond. If the employee does not comply, they are required to adopt the due process of law.
However, you are bound by the Notice period and it starts from the day you had submitted the resignation.
By the way, why you want to leave the post of probationary officer to join a Group 'C' or 'B' post? Have you considered all the aspects?
sudhakar dash
(Querist) 12 December 2015
thank you sir .....
yes i have considered all aspects bank job is quite harassing no regulated working hours have to work fron 9.30 morning to 7.30 or 8.00 even sometime upto 9.00 pm....
so i want to wuit bank.....
about the notice period i have given a letter
on 16-11-2015 expressing my intentions to leave the bank with heading 'notice prior to resignation' and on 03-12-2015 i gave resignation and requested to relieve me on 17-12-2015.....so will it be one months notice or it will be counted from 03-12-2015....
and it is justified that if the bank terminates an employee it gives 1 month notice and if employee resigns he has to give 3 months notice.....
i have given the letter of resignation and asked to be relieved on 17-12-2015 can i now ask them that i want to work for 1 month notice period???
please help me....sir
Rajendra K Goyal
(Expert) 12 December 2015
You have signed the Bond after understanding the contents. These would be applicable and would be treated justified till competent authority / court decide otherwise.
Bank may claim that training expenses are not only the TA etc. paid to you, it includes share of expenses in maintaining training center and staff there.
Agree that the service conditions in Banks for junior officers are terrible, you can make these comfortable if you forget your career or place of posting.
Kumar Doab
(Expert) 12 December 2015
Response is same as given in another thread initiated by the querist at:
http://www.lawyersclubindia.com/forum/Service-bond-and-notice-period-130624.asp#.VmvmIF5-jMo
The notice period starst from date of notice of resignation.
No it is unfair.The contarct of employment unlike any other contract should promote equitable discretions, or it can be termed arbitrary.
The exercise of recruitment is not to earn from it.
In one case the bank employee succeeded to get back entire amount collected by the bank.
Before you start agitating you should succeed to build irrefutable written record for use later in appropriate forum.
Did the bank declare in job advt that selected candidate shall have to sign a Bond?
sudhakar dash
(Querist) 12 December 2015
for Rajendra K Goyal sir...
sir the bank gives 1/4 of the DA applicable at these training cities and the 3/4 of DA is not given because the bank is providing lodging and boarding facility in the training centres......
so that 3/4 of DA should be taken as expences for each day on a candidate....
and for maintaining training centre and staff......many students get training there from years and many will undergo training there so these expences should be devided by the total no of students getting trained there however it will never amount to 200000 rs.....
is it fair to ask all these expences from one candidate who is leaving????
P. Venu
(Expert) 12 December 2015
I am afraid, the additional issues raised above are of little relevance to the main issue(s) in hand.
Please note only a focussed approach can solve issues involving substantial questions of law. Unnecessary and irrelevant digressions would spoil your case.
sudhakar dash
(Querist) 12 December 2015
ok....sir understood it.
please guide me in the right direction....
sudhakar dash
(Querist) 12 December 2015
can this bond be transferred to my new employer central govt,
if yes what is the procedure????
Kumar Doab
(Expert) 12 December 2015
You have posted that:
>>> "sir the bank gives 1/4 of the DA applicable at these training cities and the 3/4 of DA is not given because the bank is providing lodging and boarding facility in the training centres......
and for maintaining training centre and staff......many students get training there from years ....."
These are worthy points................as the bank has already deducted the cost OR in other words the cost is born by the Trainee...................and in all these years ...the bank might have already recovered the cost of center and training material!
Does the DA deducted equalizes to Rs.21060+food etc?
If yes the bank has already recovered it.
Moreover the training given might just a familiarization programme so as to enable the employee to handle the counters of Bank. It should be therefore without any cost to employee.
>>> "they provided me the standard resignation form on 08-12-2015 "
There is no forced condition that notice/resignation is to be submitted on any form and in language drafted by employer.
Notice/resignation is personal matter of employee and can be sent on plain paper.
If you decide to fill it then you must not forget to mention that this form was supplied to you on dated by Mr/Ms.............in office (address) after submission of notice of resignation/resignation dated............ and copies of notice of resignation/resignation are attached herewith and notice has already commenced from dated................and expires on dated..................
>>> " and said that notice period will be counted from that date ."
Are any of the statements made to you in writing?
>>> "bank job is quite harassing no regulated working hours have to work fron 9.30 morning to 7.30 or 8.00 even sometime upto 9.00 pm...."
You may check with officer/bank employee's unions of work hours and also service conditions narrated on appointment letter, bank's website, advocated by IBA, and put this on record if you want.
You can download the attendance record.
It is obvious that bank shall accept it in writing , shall not ask in writing to spend extra hours, and shall also decline to pay any extra wages.
You may nullify everything in your minutes if you want or if your able counsel advises to do so...................of course under proper acknowledgment.
Needless to mention that it shall be appropriate if you consult an able counsel
specializing in such/labor/service matters ASAP and submit everything in consultation with your able counsel, under proper acknowledgment.
The fate can not be decided in this thread as the action that Bank's management has decided it shall take however if you have succeeded to build good record then you may have a relief.
Rajendra K Goyal
(Expert) 12 December 2015
As far as 3/4 th of DA (it is not payable and not recovered as claimed by the author) is concerned, this is paid as per IBA guidelines and amount is not actual. Even any due TA and DA paid is part of expenses for training (3/4 as boarding and lodging in lieu to 3 star hotel facility which is not paid and 1/4 paid for other expenses with TA bill), Training expenses are not covered in it. If the prorate expenses per candidate per day is counted in maintenance of training center, it comes considerable amount.
Bank does not train people for charity, but for use skill for it, hence the Bond taken to cover such risk.
Kumar Doab
(Expert) 12 December 2015
Expert Mr.Goyal has added inputs.
The author may download the IBA guidelines pertaining to his designation and relate.
It is reiterated that it shall be appropriate if you consult an able counsel
specializing in such/labor/service matters ASAP and submit everything in consultation with your able counsel, under proper acknowledgment, so as to build irrefutable record for use at appropriate time in appropriate forum so that even if you have to make the payment (under protest in sufficient words) to get relieving letter/NOC etc......................you can later file to claim it from court of law.
As far bank is concerned it has your acceptance for the bond and even highest office may not provide any relief fearing setting a precedence.
The consultation in time and record that you can build may fetch you relief even if later.
K.S.Srinivas
(Expert) 14 December 2015
Consult a lawyer who has specialised in service matters/labour laws.
sudhakar dash
(Querist) 15 December 2015
Thank you very much everyone for your timely response and help.......the bank is asking for the bond amount and notice period amount (3months gross salary) and refusing to accept resignation or relieve.....
I have consulted a lawyer and gone through cases like central inland watch vs brujnath ganguly where the SC has explained inequality in bargaining power, distributive justice and unconscionable contracts....
I feel I should file a writ petition against the bank and seek justice from court of law....
Kumar Doab
(Expert) 20 December 2015
In response to last post of the author-querist-Sudhakar dash,
It has already been posted that:
"In one case the bank employee succeeded to get back entire amount collected by the bank.
Before you start agitating you should succeed to build irrefutable written record for use later in appropriate forum.
As far bank is concerned it has your acceptance for the bond and even highest office may not provide any relief fearing setting a precedence.
"
Since the bank employee's unions and employees are signing on the dotted line blindly and doing nothing and in addition if the unions do not want o support or act then for you court is the last resort.
After all court and state is 'Parens Patriae'; Parent to the nation.
sudhakar dash
(Querist) 30 December 2015
Respected sir I am serving full notice period and also agreed to pay the bond amount can I claim it after I get relieving letter please provide threads of such cases in which the bond amount has been recovered ....
In my letter I have written "I am ready to serve full notice period and also to pay rs 2.00 lakhs bond amount only to fulfill the terms laid down before me to get relieved from the bank. However, at a subsequent date I will seek the opinion of a court of law towards the legality and enforceability of the bond and to ascertain the justification behind the bank's action to recover rs 2.00 lakhs from an officer on probation,on whom the bank has spent only 20000 rupees"
Is it sufficient to claim the amount at a later date..
Thank you all.
sudhakar dash
(Querist) 30 December 2015
Kumar doab sir plz give the case reference you mentioned ...in above comments..in which the employee recovered the entire bond amount..
Plz
Kumar Doab
(Expert) 30 December 2015
1. Whatever you have written is apparently not drafted by your counsel. Your counsel could have certainly provided you with a better draft.
2. Later you can approach your able counsel.
Your counsel at the time can examine all record and advise you.
3. The following judgment is crystal clear.
Karnataka High Court
Prashant B Narnaware S/O Shri ... vs Vijaya Bank on 8 August, 2012
http://indiankanoon.org/doc/180567854/
ORDER
i) Writ petition is hereby allowed.
ii) The condition in recruitment
notification Annexure-A, order of appointment, Annexure-B and indemnity bond Annexure-H in so far as it relates to demanding and recovering a sum of Rs.2.00 lakhs as damages is held as unconscionable, unsustainable and unenforceable in law.
iii) Respondents are hereby directed to refund the amount of Rs.2.00 lakhs together with interest @ 9% to the petitioner.
iv) Ordered accordingly.
Sd/-
JUDGE.
4. THE SAID BOND MAY BE AGAINST BANKING REGULATIONS………………………….PUBLIC POLICY.
Such queries have been discussed in many threads at LCI e.g;
http://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp#.Vf45Zn1-jMo
http://www.lawyersclubindia.com/experts/Indemnity-Bond-12811.asp#.Vf46IH1-jMo
http://www.lawyersclubindia.com/experts/Indemnity-bond-314361.asp#.Vf46PX1-jMo
http://www.lawyersclubindia.com/experts/Issuance-of-no-objection-certificate-for-outside-employment-561211.asp#.VgZiR31-jMp
Issuance of no objection certificate for outside employment
Although some references/citations have been made in suggested threads, …………………………………….you may go thru some more publications…………………………………in which CEO’s have admitted that……..:
“"This practice may not be legally tenable. Which is why, we wanted to distance ourselves from such practices. Again, how can we prevent one from joining other banks, if we cannot match financial packages?," felt UCO Bank chief SK Goel. UBI executive director TM Bhasin is in agreement. "As against using such strategy, banks would perhaps need to find out ways to offer incentives to new talents to retain them. The practice of bonds can also be legally challenged," he said.”
http://articles.economictimes.indiatimes.com/2009-12-08/news/27646978_1_bank-officers-private-banks-new-recruits
sudhakar dash
(Querist) 31 December 2015
Thank you very much sir....
sudhakar dash
(Querist) 23 March 2016
Respected Sirs
i got relieved from the bank after paying 2.0 lakhs bond amount and now want to make a writ petition in orissa high court.
i have contacted a lawyer also. but he is not sure about whether this matter comes under jurisdiction of orissa high court.
i have joined the bank at hyderabad and was posted in chhattisgarh.
but i am a resident of orissa and the said bond was also executed in orissa district court berhampur.
please guide me whether this case comes under jurisdiction of orissa high court or not...?
P. Venu
(Expert) 24 March 2016
The best option is to file a civil suit. The suit needs to be filed at the place where the cause of action, partly or wholly, has arisen.
T. Kalaiselvan, Advocate
(Expert) 20 December 2015
