Breaking of company bond

You should have consulted before signing the BOND!

What is this training that has been mentioned as ‘Specialized Training’ that became the ground for Bond?

Does it provide you any certification from any Instt. and provide a certificate………………….or adds to your qualification……………………or does it add some extraordinary skill to you?

The training that is pertaining to operation, processes, products, policies, strategies of the company should be provided by employer without any cost to employer.

What is this Secret that has been mentioned as ‘Trade Secret’? Has the company classified and distinguished the generic information that flows in day to day operation of the company that employee comes across while performing duty assigned to him?

Just by mentioning specialized training it does not become training likewise just by mentioning trade secrets it does not become a trade secret.

The liquidated damages stated in extract of BOND posted by you is not much it is only two months Gross pay……………………….If it acceptable to you then you may pay it .

You have the option to negotiate Pro Rated damages e.g. 1 month’s Gross salary……….

In addition you may have to tender notice pay…………and any other damages/amounts that may be mentioned in BOND…………………………

Although there are many threads on similar queries e.g;


https://www.lawyersclubindia.com/experts/Service-agreement-bond-clarification-needed-475201.asp#.U5r1LHKSwb8


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

It shall be appropriate to show the BOND in person to a competent and experienced Labor Consultant/Service Lawyer………………and proceed under the expert advise of your lawyer.

well elaborated by Mr Kumar Doab.  Nothing more to add.

Sir,

The company not given me any ‘Specialized Training’ or any certification from any Institute which are added to my qualification and also it does not add any extraordinary skill to me.

The only training i got was induction training pertaining to operation, processes, products, policies, strategies of the company.

And only information i had got is the generic information that flows in day to day operation of the company that it no other Trade Secret is shared with me.

But i want to know the meaning of sentence that "In case i leave the employment for whatsoever reason without the prior express consent of the Paramount Health Services (TPA) Pvt. Ltd."

If i give 30 days notice period to company, in this case i give prior notice then why should i give the 2 gross salaries to company.

Regards,

Paresh. B. Bane

By signing the BOND by your free will you have concurred to pay liquidated damages of 2Month’s Gross Salary to the company if you separate without prior express consent of the company.

If the company has provided only the Induction training and NO ‘Specialized Training’ then you should have  written to the appointing authority and company’s officials that have signed on BOND that the Bond be cancelled since NO such training has been provided…………………. And  a written communication to this effect be supplied to you and BOND be destroyed in your presence.

This amount of liquidated damages is  apparently in addition to Notice Period/Notice pay in lieu of notice period that might have been stated in appointment letter issued to you………………

Has the company issued any appointment letter to you?

Is it mentioned in appointment letter that service conditions shall be governed by HR policy/service rules and regulations and did the company supply these along with appointment letter, before you signed the acceptance on copy of appointment letter………………………..or have kept these on some shared portal…………………………..and have you obtained the printed version? If NO minute that these were never supplied and demand a copy by redg. post. This should be supplied without any cost to employee.

Notice period and notice pay in lieu of notice period does not necessarily depend  upon the T&C inserted by employer in any private agreement that employer has signed with employee e.g. appointment letter, contract of employment………………….

There are many threads that you may find relevant and you can pick up relevant points:

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U51N3pSSwb8

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UwDFP0eBmXU

https://www.lawyersclubindia.com/experts/Employer-not-giving-relieving-letter-476871.asp#.U51fPpSSwb8

https://www.lawyersclubindia.com/forum/3-notice-period-relaxation-advice-103873.asp#.U6K7L5SSwb-

The issue that you have posted is not faced by you alone but endless number of employees as employers and their attorneys i.e. Line Managers, HR personnel violate rights, norms, rules, laws with impunity and without any fear within the walls of the offices for simple reasons that;

Employees are ill informed, are not united do not become members of employee’s unions-trade unions, do not form ‘Work Committees’ in the companies,  many of them are fearsome, do not approach Labor Consultants/service lawyers and do not agitate…………………

If employee’s are united they can negotiate service conditions, form ‘Work Committees’ that is one of the authorities as per ID Act and employers shall not be able to exploit them…………………

When union are there to represent the line managers, HR , employers shall not violate the rights of employees with impunity.

Are you aware that employees can form ‘Works Committee’ and it is an authority and President /Chairman is on rotation from employees/employer and it has equal number of employees from employer/employees?

The Industrial Disputes Act, 1947

CHAPTER II: AUTHORITIES UNDER THIS ACT

3. Works Committee

Trade Unions like CITU,INTUC,AITUC,BMS, FMRAI………….are more than willing to embrace the employees. Log onto their website and speak to the Secretary/President.

The companies, employers, HR personnel, legal cell have done their homework on how to handle such matters and would know how to chase you therefore it shall be btter to understand the matter before you proceed on your own.  

The online discussions have its own limitations.

It shall be appropriate to show the BOND and all relevant documents in person to a competent and experienced Labor Consultant/Service Lawyer………………and proceed under the expert advise of your lawyer. The lawyer that has examined the docs on record and inputs can advise you the best.

Let your lawyer draft all of your representations now.

Sir,

If i gave company 30 days notice period before ending my bond and my reporting manager and HR not accepting that in that case what should i do?

If i served the notice period and leave the company in that case can they demand me 2 months gross salary and can they stop my reliving letter and PF amount?

If my new company not required reliving letter from me can i leave this company less than 30 days notice period?

Please guide me,

Thanks,

Paresh B. Bane 

1.     The Bond period shall expire on 30.06.2015, as posted by you.

2.     The notice period is 30 days as posted by you.

3.     You shall need relieving letter not only for next employer but also for next to next and onwards…………………..employers. Therefore you should obtain acknowledgment of notice of resignation, acceptance of resignation, service certificate, correct original  FnF statement for verification and acceptance by you (decline to accept in writing if it is not correct), FnF wages by bank DD, Form16 as per correct FnF statement, PF a/c slips of each year, salary slips of each month, ESIC card, NOC/NDC, acknowledgment of handover of charge/company property, etc………………….Service certificate should be supplied to all employees. Relieving letter is issued after settlement of all a/c’s by employee. If you do not settle all a/c company may not issue relieving letter.

4.     Your Manager, HR are not your employer. Address and supply notice of resignation to appointing authority, MD preferably by letter thru redg. post…………..

5.     Let your Labor consultant/service lawyer draft and structure all communications and build favorable written record to suit your interest in the long run

Enough has been discussed. Procced under expert advice of your lawyer.

you asked

"can they stop my reliving letter and PF amount?"

No. When you join new company let the pf be shifted to new balance and you do not have to care about them.

You have signed 'Bond' by your free will.

Relieving letter can be and in all probabilities shall be blocked.

PF can't be blocked. Funds in PF a/c maintained with EPFO are not in control of company.

Submit PF withdrawal/Transfer forms under proper acknowledgment preferably by Redg. post and approach RPFC in nearest PF office in case of issues.