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Breaking service bond, psu

Page no : 2

Aashish Vishwakarma (ET)     24 May 2012

Thank you Sir. But my confusion still remains.

My senior is suggesting me to send the copy of offer letter along with my request. As I told you, in the head office, they are suspecting I am going to join job in ISRO as I had spplied for the NOC for the same in past.

It should strengthen my request, but at the same time I want to be sure that they would not take any step to harm my selection in the institute.

I know I am growing overly skeptical. But I just want to be sure.

If this simple request doesn't work out, I'll surely see a lawyer. 

Kumar Doab (FIN)     24 May 2012

Why can't your senior put his suggestion to you in writing even if by email?

Why don't you apply your skills to cajole,convince,persuade your seniors to put the matter in writing to you?

Employee should record such transactions.

There should be nothing wrong in printing the emails,forwarding the emails whihc shall add weight and force to your issue/case.

 It is possible that they may be inclined to help you.You know your seniors, HR better than anyone else. You have to apply your judgement. You should defend your interest.

You may consult your lawyer now.If your lawyer opines that even if you supply copy of your offer letter and comapny ditches you, he shall still be able to handle the matter and defend you,then it is your call.

Aashish Vishwakarma (ET)     24 May 2012

I am sorry for the consufion.

HR has not asked me about the offer letter in written. But the Unit Commissoining Manager of our site read my letter and suggested that giving proof of offer letter will aid weight to your request.

I have already decided to attach proof of my father's retirement. 

I just want case to get solved easily if it's possible as seniors at my construction site seem coperative.  

The only problem with hiring a lawyer is that, my construction site is 100kms away from the nearest city. And it's going to be a little difficult finding one. 

 

Kumar Doab (FIN)     25 May 2012

@ K Packiarajan,

 

In adittion to ID Act compliances have to ensured under various other acts.The employee as defined in these enactments would be protected.

Notice period is described in Labor Laws e.g.:

--Sec. 13. Termination of employment. of

INDUSTRIAL EMPLOYMENT (STANDING ORDERS) CENTRAL RULES, 1946

 

The Central government intends to introduce the concept of fixed term employment by amending the rules of the Industrial Employment Standing Orders Act. This amendment will make it mandatory for employers to give notice as per the Industrial Disputes Act 1947 (one month’s salary) in case the services of temporary badli or fixed term employees are to be terminated before the completion of their term. The employer will no longer have the right to terminate the service of a temporary workman without giving notice.

 

--SE ACt 

e.g. As per  SE Act applicable to Delhi:

Sec.34

30.

 Notice of dismissal

 

(2)

No employee who has put in 3 months' continuous service shall terminate his employment unless he has given to his employer a notice, of at least one month, in writing. In case he fails to give one month's notice he will be released from his employment on payment of an amount equal to one month's pay.

 

Then notice period is mentioned in advertisement for the post, letter of appointment, employment agreement, standing orders/service rules of the company as agreed upon between employer and employee's union.


Attached File : 845541570 industrial employment standing orders rules.pdf, 845541570 delhi shops act.doc downloaded: 139 times

Kumar Doab (FIN)     25 May 2012

@ Ashish,

At times child like innocence may be more effective than armaments.

Line management can ease out the employee from a situation. HR can make positive/favorable recommendations. Legal cell can cite weakness in the case and can recommend that company may loose in court of law.

Employee should be smart enough to sense what shall work in his favor.

Child like innocence may work better than protest, agitation, appeal, request, legal citations etc.

Your line management and HR might be genuinely interested in easing you out of the situation and they may have the authority to make recommendations. Or your seniors may not have any say or authority in the matter at all.

You have to use your judgment. If you are confident that you can resolve the matter in your favor by providing the copy of document in question you may.

Another option is if HR or HO has not asked for the copy, you may continue to cite from your resignation that you are separating to peruse higher studies, till HR or HO demands the proof. Apply your judgment.

The lawyers at your location must be aware of precedence’s in your company and may quote some earlier judgments in favor of employees, in similar cases. Lawyers do meet their clients till late evening hours.

 We sincerely wish that you should be able to resolve the matter without being dumped in courts, by applying rapport, goodwill, and exceptional levels of persuasion, persistence, negotiation, reasoning skills. This shall be the quickest and easiest way out.

 


Attached File : 845563583 820503842 negative covenant in contract of employment.pdf downloaded: 116 times

Aashish Vishwakarma (ET)     28 May 2012

@ Kumar Sir, 

 

Thank you for your thorough guidence. 

I have applied for Bond Waiver. And I have attached copy of my offer letter as well as my father's pension vertificate.

My site manager says management will find my application string enough and they will waive off the bond amount. He's positive that this issue will get resolved internally. 

I shall upload correspondence here later on, so that they can be helpful for people having similar problems.

Thank you again. I was a little scared as I am facing such legamatic sitiation first time in my life. But your help has changed my perceotion and it's going to be help me lifetime. :)

Kumar Doab (FIN)     28 May 2012

Dear Ashish,

Wish you all the very best.

Kindly do post the correspondence. You are right that the resolution you are able to achieve within the organization shall be of immense use to many employees who face similar issues.

Aashish Vishwakarma (ET)     03 June 2012

Dear Kumar Sir, 

 

I have requested senior authorities to arrange an appoinment with Exicutive Director of our company. 

I feel that this might be a very good chance to get bond amount waived off.

It would help a lot if you can suggest a few points and the way I should present it to our Executive Director. 

Thank you very much in advance. :) 

Kumar Doab (FIN)     03 June 2012

The bond is for training to be provided by the company. There is neither any training nor supervision. Hence there is no expense by company. Rather you have worked for prolonged hours even on holidays without any compensation.

You have put across almost all of your points.

You are not joining any competitor. You are quitting for perusing higher studies and you shall to bear the big expense of studies.

You may take your father along with you. After the meeting you may submit the minutes of discussion covering all points.

If you can fix up an appointment with an experienced and competent service lawyer at your location or even company HO, and show all record, you shall get useful and specific inputs.

If the company is not agreeable for full waiver you may settle for pro rated settlement which may be to the tune of say Rs.10000/ and buy peace.

Best Wishes.

1 Like

Aashish Vishwakarma (ET)     21 June 2012

Dear Sir, Things have not gone as planned. ED has remained busy. He never replied any of my maild directly. However his PA and our head HR claims that ED has gone through my application and it is not in his power to waive of my bond amount. I tried to reach in Delhi BHEL office. But no one is talking to me and they told me to resolve my case in Nagpur office only. This situation has brought great depression to me.

Now I need your guidance on following things.. 

1. Can they withheld my reliving letter and remaining salary if I do not pay the bond amount before I leave?

2. If the issue remains unsettled can it produce any harm in my further studies?

3. My father is suggesting to pay the bond amount for the sake of the safety of my career. He said he'll fight back to recover the money. Is it safe way? What are the chances to get the money back? How much time can it take? 

 

Dear sir, I come from a middle class family, and my father's savings got used in my studies. We don't have the 2 lakh rupees to pay to company and we'll have to borrow it from friends and relatives if we don't have any other choice.

Kindly suggest. 

 

You have been a great guide through out the process and I am very much thankful to you. I hope you can come up with a solution that will save hard earned money of a middle class person like my father.

 

Kumar Doab (FIN)     22 June 2012

It is the heartfelt opinion. You may take expert advice from a competent and experienced service lawyer and show all record and give inputs in person.

Leave alone MD even if his PA, Head-HR, your superiors in your office or anyone applies common sense they should waive off the bond as no training or supervision is provided, as per your posts.

It is felt that they have dropped enough hints that you shall have to get the relief from court of law.

You must take out all record to prove it be it emails, assignments, work reports, job card ……….anything and everything. Do not leave anything to chances. You have to muster courage and you shall need to provide evidences, witness etc. to your lawyer. Can you think of a strategy or cajole your supervisor to write a communication to you even if by email that you have been handling all work on your own/alone and have performed with your individual effort.

1. Yes. You can proceed legally to recover it. You may refer to SE act applicable to your state. There may be a provision of granting work experience/ service certificate.

2. No one can stop you from studies. If they do so it may fire back on them. Can’t you proceed to sue them in their individual and professional capacity? After it is breach of trust on their part that they pledged to provide training and extracted a bond, but did not provide training?

3. If you pay company may claim that employee paid voluntarily and with mutual consent.

If you exhaust your resources, you shall have no funds to support your studies. If you borrow you shall be under debt.

You may obtain final opinion from your lawyer.

Valuable advice of learned experts/members is sought.

1 Like

Aashish Vishwakarma (ET)     26 June 2012

Dear Sir, 

 

As per your advice I consulted a service lawyer from Ahmedabad. Below is what he advised me:

 

"A service bond is not really enforceable via court unless the employer is able to prove training imparted to you, thereby having invested in you and likely to suffer loss on your departure breaking the bond. For this and also for the time and effort involved, generally no employer goes to the court to enforce a service bond but rather prefer not to issue a relieving/ experience certificate, settle dues etc and thereby make an employee litigate.

In any case, the PSU may not pursue matter against you unless you have fought with them or have some disciplinary action etc pending.

If you do not have money to pay, you have no option but to leave without paying. Leave after duly informing by registered letter and do not desert. Also, do not take any salary after you leave.

He says that even if company choses to go legal, it can file only civil case against me and under no circumstances, they can do anything to harm my further studies. 

As it's only been four months, and as I'm changing my carrer path experience cerificate is not of much importance to me.

Also, as I have not stated anything about my present employment in IISc admisison procedure, I do not need to produce any NOC or relieving order at the time of joining. 

So it seems like the only choice I have is to leave the company with informing them via registered hard copy. 

What's your take on this? 

Kumar Doab (FIN)     26 June 2012

You may tender notice of resignation addressed to appointing authority under proper acknowledgment, and avoid abrupt termination. You should mention effective date of resignation/last day in office in notice of resignation. You may submit copy of notice to your office where you are located and obtain acknowledgment under seal and signature of concerned personnel. You should mention that routine work may be assigned to you which can be completed up to and within your last day in office i.e. dated...............and you should be supplied with a written communication instructions on to whom you should handover charge and company property ( if any) and the designated personnel may be advised with a copy to you to issue acknowledgment on the spot. You may also mention that acknowledgment of notice may se supplied to you immediately and acceptance of resignation, work experience certificate/service certificate, relieving letter, FNF statement , payment of FNF dues by bank DD, Form 16, PF number, PF accumulation reports, attested copies of PF withdrawal forms, NOC/NDC should be supplied to you within your last day in office. You may issue reminders. On your last day you may submit final resignation under proper acknowledgment mentioning date and details of your notice of resignation. If there is a shortfall in notice period you may mention to adjust it in FNF statement.

FNF statement, last salary slip, copy of notice of resignation/resignation, acceptance of resignation, work experience/service certificate can validate your last service record. You must obtain FNF statement. You can obtain service certificate under SE act applicable to your state.

Any training rendered to better the performance e.g. product and processes of the company can not be at the cost of employee. Who else shall train the employee for its products? In your case as per your posts there has been no training. If you have posted the facts, company can not sue you or it may boomerang on the company.

If company has appointed one or more supervisor above employee(s) it does not mean that employee has to pay for the CTC of the supervisor(s).

Your lawyer is right.

If company issues any communication, notice, legal notice, you should reply and explain the facts. Despite that if company proceeds to litigate you seem to have a good case.

Aashish Vishwakarma (ET)     26 June 2012

 

Dear Sir, As per your guidance I have communicated with HR as below..

"Dear Sir,

As I have already mentioned, because of the financial constraints, I am
not in position to pay 2 lakh rupees as bond amount immediately. Therefore
I humbly request you to proceed my resignation further.

Kindly issue to acknowledgement of notice immediately. And kindly also see
that  acceptance of resignation, work experience certificate/service
certificate, relieving letter, FNF statement , payment of FNF dues by bank
DD, Form 16, PF number, PF accumulation reports, attested copies of PF
withdrawal forms, NOC/NDC should be supplied to me within my last day in
office (i.e. 1st July, 2012, as per my resignation letter dated 22nd May,
2012}.

Thank you and regards.
Yours faithfully,

Aashish Vishwakatma"

This is what he replied.. 

"Dear Sh. Aashish,
As already communicated to you vide my earlier email messages you are
required to submit the bond amount and other company dues for further
processing of your resignation case. You may also note that you will not be
relieved from the services of the Company unless you deposit the amount as
per rules.


Kindly refer to resignation letter dated 22.05.2012 submitted by you. Kindly
go through the attached letter for details regarding payment of bond amount
and other company dues on resignation from BHEL."

he also attached a scanned copy of signed document signed by him saying.. 

"Please refer to resignation letter dated 22.05.2012 submitted by you. In this connection, you
are advised to pay the following amount for taking necessary action at our end.
1)	Service agreement bond Rs. 2,00,000/- (Rs. Two lakhs only)
2)	Any amount paid to you for TA, baggage allowance, fare, etc. on account of initial
joining.
3)	Any other Company dues
After payment of all dues as above, the cash receipt and NOC may be sent to us for taking
necessary action at our end. Please note that your relieving will be after payment of above
amount."

It seems they aren't going to relieve me unless I pay the bond amount. Hence I've got no choice to leave the company without releiving order. 
I will again reinform them about my leaving via registered post, and will also submit a copy to the place I work. 

Kindly reflect. 

Kumar Doab (FIN)     26 June 2012

"he also attached a scanned copy of signed document signed by him saying.. "

Do you wish to mention that this letter was never received at your end? Companies are known to insert letters/noting in personnel file and claim those letters were sent. The responsibility of the company is to supply.

It seems certain that company shall not accept resignation and relieve you. One of the option  for the company is to issue communications to report for the duty, issue reminder and then close the file by declaring absconding and issuing termination order.

Kindly consult your  lawyer and deliberate on replying to the company that no training was ever provided by the company hence you are not liable to pay any costs to company. You may also contest other clauses of the service agreement, while in employment.

You may proceed as deemed fit, and as per advice of your lawyer.


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