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Jit (NA)     13 March 2014

Bond is still valid?

Hi,

I used to work of one of the top IT firm in India from mid 2006 to mid 2012. Company sent me to onsite in early 2008 and asked me to sign a bond. The bond was signed on Rs. 100 stamp paper. The bond says that I cannot resign at onsite without 3 months of notice period else I have to pay Rs. 5 Lakh as bond breakage amount. I got visa from 2008 to 2011 (3 yrs). In between I visited India and when I returned back to onsite the immigration officer provided me document with which I can stay in that country till 2013 (If I go out of that country a valid visa is required). Meanwhile my visa expired with this company but since I have this valid document I could stay there. I requested company to file extension or new visa as in case of any family emergency in India I have to come to India leaving all my stuff in that country which might have affected me financially and without valid visa I cannot come back and settle it. Therefore I decided to leave this company at onsite. I left it in mid 2012 (My visa was not valid with this company during that time) with less notice period than mentioned in the bond. Now due to family emergency in India I returned back. Meantime I received full and final settlement from this company asking me to settle Rs. 5.28L. They are not ready to provide me my experience letter and other documents. They also did not paid me onsite vacation amount in full and final settlement.

Now my question is: Is this bond legal and is there any limit for duration?

Since my visa expired with this company and they have not provided me any training or anything then this bond is still valid?

I asked them if there is any negotiable value which I can pay but I did not receive any update from them.

Is there any thing we can do in this case? 

Thanks in advance.



Learning

 5 Replies

Sanjay Malik (Manager- Legal & Compliance )     13 March 2014

though bond are valid for certain reasoable time periods only, and the same is only when the employer provide some training to acquired special skills. in case of a bond without providing any training to acquired new skills restrain an employee to left service does not hold good in eye of law.

in your case it seems you were sent abroad by the company for special assigmnet or arrangment. if company has born all expenses on your stay over there apart from your wages, than in that case company is only entitled to recover that amount of expenses, not the full amount of bond.

still would suggest you, will all documents, you consult with  a practicing lawyer.

Jit (NA)     13 March 2014

Thanks Sanjay for your reply. The company has born my 1 way flight expenses that's all.

Kumar Doab (FIN)     13 March 2014

As rightly suggested by Mr. Menon you may consult attorney at your location and a competent and experienced Labor Consultant/Service Lawyer in India?

 

You were sent at onsite location by a transfer Order or a deputation order?

Or

Under which kind of arrangement you were sent to foreign location?

Do you have the copies of such communications exchanged before and after signing the BOND?

The BOND was drafted and signed by employer against what consideration/favor by employer?

                Did the company provide any social security tool/benefit in foreign location e.g. Gratuity, PF, Group Insurance, health Insurance etc………… in India?

 

Did the company include Gratuity component in CTC sheet and FNF statement?

 

The salary was processed in India or foreign location and was salary slip issued?

 

IN majority of the countries there are Labor Laws, statues, provincial law (like state acts in India)  applicable which have to be followed for  Min. Wages, OT Leave, Work Hours etc…………………

Did company comply with these?

 

 

Consult a local attorney and if eligible stake claim for unpaid wages, amounts?

 

 

If the FNF statement is wrong/erratic and not acceptable to you then decline to accept it in writing under proper acknowledgment ASAP after consulting your lawyer.

   The company has to bear the expense if company has deputed/transferred the employee to work for employer e.g. to and fro travel expenses, airport transfers, luggage carriage, in transit meals etc………………..If it is training then company should provide boarding and lodging expenses…………….

If no training is provided and you have worked as a regular employee and fetched revenues/profits for the company (which might be far higher than in India) then the compensation paid you in foreign country might be justifiable……………….

You may download the revenues generated by you /assignments handled by you/work schedule assigned to you………………and any other document and record that might be useful and relevant!

The deputation/transfer should not be exploited as an avenue to earn undue advantage pro fit from employer.

The liquidated damages are not necessarily to be paid on demand as these might have to be proved as actual amounts.

If the VISA expired then was your stay as employee of the company unauthorized due to expiry of VISA? If yes you seem to have done right by resigning from the company ……………………!

Do you know the community of the employees in your Host Country that are working on Deputation/Transfer and have signed BOND?

Form a community and help each other. Negotiate the conditions before you sign on the dotted line..!!

Your attorney/lawyer may opine that your offer of Pro rated charges was an offer of arbitration that deems to have been declined by company by its studied silence.

 

AS per Labor Laws in India ‘Service Certificate’ has to be issued to all employees?

MOST IMPORTANTLY DOES THE HOST COUNTRY WHERE YOU WERE LOCATED TREAT BONDS AS LEGAL OR ILLEGAL?

It is reiterated that before proceeding further you may consult an attorney, Labor Consultant/Service Lawyer……………………………show all docs and records, give inputs in person and proceed under the expert advise of your lawyer. The lawyer that has examined the merits can advise you the best.

 

 

 

 

 

 

 

Jit (NA)     13 March 2014

1. I was sent to onsite location by deputation order

2. Gratuity component was not included in FNF settlement. 

3. Salary was processed in foreign location as Indian component and foreign component paid in foreign currency and salary slip was issued at both location 

       

Kumar Doab (FIN)     13 March 2014

Apparently salary is processed and disbursed from India. It should have been subjected to statutory deductions.

PF: Send a written communication to deduct employee’s share of PF for whole period it was not deducted and deposit to EPFO and supply the PF a/c slips.

The funds in the PF a/c are with EPFO and employer has not control on it. Failure to deposit, declinature to attest PF forms is offence. Thereafter submit PF withdrawal/Transfer forms as deemed fit under proper acknowledgment.

Gratuity: Payment of Gratuity Act 1972 is silent on location. Submit a representation by redg. Post under proper acknowledgment that Notice of Determination of Gratuity is not supplied to you and Gratuity is not paid in FNF settlement, and that FormI is attached. Employer is liable to pay interest for the period of delay @ 10%pa.

PF is immune from attachment.

In your case apparently Gratuity can not be forfeited.

AS per enactments applicable in some provinces in some foreign countries   employees have right to access their personnel file maintained by employer. Your attorney shall guide on it.

There are individuals who want to cover Indians working abroad and support and help them.

You can get in touch with them.

IT employees union would also like to support e.g;

 

https://www.itecentre.co.in/

https://ithiworld.wikispaces.com/News+Update

IT/BPO Voice of India | Facebook

UNITES Professionals

www.unitespro.org

https://www.wbitsa.org/

www.itpfindia.org/

https://itnitesunion.wordpress.com/author/itnitesunion/

 

 

Shiv Mahiti Ani Tantradyan Sena(Shiv IT SENA)

mankar.janardan@gmail.com


https://www.shivsena.org

 

 

 

https://www.amrc.org.hk/node/1088         CBPOP

https://www.freepatentsonline.com/article/Indian-Journal-Industrial-Relations/185430721.html

https://bpo.knowledgehills.com/Directory/BPO-Jobs/CBPOP-Centre-for-BPO-Professionals.aspx

 

 

https://www.dnaindia.com/mumbai/report-shiv-sena-forms-first-union-in-information-technology-sector-1465435

 

As per local laws applicable in foreign location it might be mandatory to issue ‘Service Cetificate’…………………….

IN India As per Model Standing Orders: Sec16 service certificate should be issued to all employees. It being a statue has to be followed by employer.

 

 

You may find some of the threads as relevant e.g;

https://www.lawyersclubindia.com/forum/details.asp?mod_id=67376&offset=1#.UyHSzUeBmXU

 

 

 

 


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