Hi,
I would like to know from the experts of this forum, what kind of action can be taken against a top IT gaint in India.This company is very large conglomerate. They recruit many people( freshers / experienced ) and they send many people overseas to handle their client projects based on their client's request and not based on the employee's decision.
All the employee who go for overseas has to sign an overseas agreement on a stamp paper. Most of time this happens at the last minute and the company always states to the employees as ' it's just a formality'. This agreement is also signed by an sureity person. Most of the time it will be another employee signing for his friend or a family member signing for his son/daughter. This a legal document but the terms and considtions of this document is not explained to the employees.
Once the employee reaches onsite he has to perform various tasks. Example: If the employee is a developer apart from his development at client place he/she should do 1. project management 2. recruitment 3. sales 4. onsite / offshore management 5. satisfy clients etc. 6. bring new openings etc.
All these employees work close to 12/14 hrs day and they work during odd hours / national / festival holidays whereas their overseas counterparts( external consultants) work for 8 hrs and get good salary. No promotions or hikes available for these employees.
Once the employee decides to quit, the company gives 2 options for the employee.
1. Go back to India and serve 3 months as per the service agreement.
2. Pay the liquidated damage as per the overseas agreement.
Option1 : Employee is having a family and their kids are going to school. How come they can go back to India in the middle of the year and serve 3 months?
Option2 : This liquidated damage amount is not mentioned in the overseas agreeement. Also the employee is not gone for training he/she is working at overseas and the company is making huge profit from this person any pay them very less salary.
Since both the options are not favourable to the employee he/she moves out silently. This company take that as an advantage and they do not provide any experience certificate or PF back to the employees.
Once the employee is gone every year this company send letters to the employee or the sureity person asking them a huge amount as liquidated damages and only then they can perform full and final settlement. .
Each letter states different amounts and classification is such as notice pay recovery, forex charges and adminstartion charges etc. Also they add xx% interest on the liquidated damage amount for the employee resignation date.
According to my understanding,
1. If a person resigns and cannot server adequate notice period. He/she must pay the notice pay recovery amount which will be 3 months basic + DA.
2. If the employee resigns the company should provide all the experience certificate and if their is breach it must be handled separately.
Whereas this firm is asking for huge amount. Assume that If the employee's yearly salary is 10 lakhs the liquidated damage amount is 6 lakhs.
Could someone explain me whether we can take any legal action against this company.
Regards
Kumar