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Harjinder Singh Sandhu (Student)     06 April 2015

Employment contract

Hi,

I have been working with Pvt. Ltd. company since July 2013, at the time of joining we have entered into Training- cum-Service Agreement (enclosed herewith) stating the minimum service period to be Two and Half Years (Including six months training period-actually the training was for 4 months and then we were sent in field). It was a sales job completely field oriented and I faced lot of difficulty in travelling to remote locations, so in Dec. 2014 i brought this in the notice of my reportings and decided to resign, i have served the notice period till 31st March, 2015 and now at the time of relieving they are saying to pay the bond amount of 1.5lacs and till then they will not issue me relieving letter.

Also they have put my salary for March, 2015 on hold.

Please guide on what is the validity of this contract?

Can company hold the salary with no reasonable explanation and refuse to give relieving letter?

Kindly guide on this matter.

Thanks & Regards

Harjinder Singh



Learning

 3 Replies

Kumar Doab (FIN)     06 April 2015

 

 

 

1. Was indeed any certified course of training provided that added any additional qualification or some extra ordinary skills?

 

2. It is mentioned that you qualified the tests to the level of satisfaction of the company and that is why you were selected from many of the candidates in campus placement.

3. You were in sales. Usually to a sales personnel training provided is for familiarization with products,strategy,policies,brochures etc  and such training should be without any cost to employee/trainee………since employer wants the employee to handle its counters.

 

That is why it is mentioned in attachment that training is to familiarize.

4. During the training did you work like a regular employee and produce revenue?

 

5. Was it mentioned that you shall have to travel to remoter locations?

Did you report the hardships and did the company provided suitable facilities to  remove the hardships?

 

6.Usually such training as GT is provided either under standing orders of Management (and standing orders may not provide for Bond/service agreement and thus such Bond may violate the standing orders)

Or

Under Apprenticeship Rules framed under Apprenticeship Act……………………..and in such case it is to be approved by the Apprenticeship council.

 

7. The amount claimed is liquidated damages and has cited travelling/boarding/lodging. This is to be provided by the company to one and all whom it wants to be it for some work.Employee shall not spend from his pocket.

Did the company pay expenses to attend interview(s)

Liquidated damages may not necessarily have to be paid on just demand and may have to be proved, substantiated with Bills.

 

8. Did the company ever breach its own promises e.g. delayed payment of wages, extended work hours beyond 8 hours without OT, rudeness, NO PF,ESIC, leave etc……?

 

Are you a member of any employee’s/Trade Unions?

In any case you need to seek help of an able Labor Law Consultant/Service Matters Lawyer/Law firm dealing in such matters………………….and your lawyer may opine that there are some remedies and if matters lands up in court of law then court may not award any damages or may award as pro rated……………………

Any deduction from earned wages has to be shown in salary slip and except statutory deductions e.g. PF,ESIC,TDS no deduction without explicit consent of employee can be made and salary slip has to supplied at least a day before fixed date of disbursement of wages and wages have to be paid on fixed date.

 

The employee can lodge a complaint the moment his earned wages are even delayed by a  day and employer can be penalized.

Service certificate has to be supplied to all employees.

. Did you resign with immediate effect or tender notice of resignation? Do you have copy of resignation?  Did you write demanding unpaid amounts? To whom you have addressed all communications/emails? Did you get acknowledgment and acceptance of resignation, FnF statement showing computation of salary paid/adjustment of notice pay/leave encashment/Bonus/OT,salary slip of all months,PF number a/c slips,ESIC card,Form16 as per correct FnF statement,NOC/NDC,service certificate, etc?

You may demand to supply all of these documents, and payment of encashement?

 

If you are unable to draft your communications and handle the matter on your own seek help of elders in the family, Union leaders, labor Law consultant/ service matters lawyer. Narrate all representations made so far and address to good offices of appointing authority,MD,Chairman.

 

 

2.    Are you a member of Employee’s/Trade Unions

Does your company have any GRC (grievance redressal committee) and ‘Works committee’?

 

3. What is your designation and nature of duties? How many people were reporting to you? Did you have any power to employ,terminate,sanction leave (or recommend ……but clarify) ,grant increment etc?


4. What is your salary: Basic,DA.

5. Was salary slip of each month, PF number and a/c slip of each year, ESIC card,Form16 issued to you?


 

 

6.  Your reporting office was located  in which state?

 

 Regd. Office of the company is located in which state?

How many people are employed in the company?


Does the company have its CSO (certified Standing Orders) and does it cover your designation or do Model Standing orders apply to it?

 

 

The company is registered as: Commercial or Industrial establishment?

 



 

 

You may reply pointwise to each point!

 

It may be possible to revert to your query.

 

 

If your counsel has opined that you may pay and close the matter then you can do so.

Harjinder Singh Sandhu (Student)     06 April 2015

1. Was indeed any certified course of training provided that added any additional qualification or some extra ordinary skills? As you have rightly mentioned that it was a training on familiarization of products and it was a classroom training of 4 months and then we were sent in field. 

 

2. It is mentioned that you qualified the tests to the level of satisfaction of the company and that is why you were selected from many of the candidates in campus placement. Yes i was selected from campus and selection procedure included written test, GD, PI.

 

3. You were in sales. Usually to a sales personnel training provided is for familiarization with products,strategy,policies,brochures etc  and such training should be without any cost to employee/trainee………since employer wants the employee to handle its counters. Yeah right

 

That is why it is mentioned in attachment that training is to familiarize.

4. During the training did you work like a regular employee and produce revenue? 4 months training on products and then we were sent in field for sales calls.

 

5. Was it mentioned that you shall have to travel to remoter locations? No it was not mentioned, i have the travel reports detailing my field visits.

 

Did you report the hardships and did the company provided suitable facilities to  remove the hardships? Yes in December, 2014 i have brought this in the notice of my reportings and decided to resign, it was nothing they could have done to remove hardships and they quoted everybody has to travel in sales.

 

6.Usually such training as GT is provided either under standing orders of Management (and standing orders may not provide for Bond/service agreement and thus such Bond may violate the standing orders)

Or

Under Apprenticeship Rules framed under Apprenticeship Act……………………..and in such case it is to be approved by the Apprenticeship council.

 

7. The amount claimed is liquidated damages and has cited travelling/boarding/lodging. This is to be provided by the company to one and all whom it wants to be it for some work.Employee shall not spend from his pocket. All the boarding and lodging expenses were deducted from the paid stipend.

 

Did the company pay expenses to attend interview(s) No it was a campus interview.

Liquidated damages may not necessarily have to be paid on just demand and may have to be proved, substantiated with Bills.

 

8. Did the company ever breach its own promises e.g. delayed payment of wages, extended work hours beyond 8 hours without OT, rudeness, NO PF,ESIC, leave etc……? My working hours were always more than 8, early morning-late night travels were very common, almost 4 days a week.

 

 

They have refused to issue relieving letter despite repeated written requests, i have also sent a mail requesting to release my salary but they have refused to do so stating that same could be released only in F&F.

i cannot pay this bond money as i am going for higher studies and this has been clearly communicated to and acknowledged by my reporting manager.

My reporting manager and VP Sales has put up a mail to HR Head for relieving me confirming that i am not joining any competition and i have made healthy contribution to my team during the tenure.

 

Please guide me how can i get this relieving letter as i would need this for stating this tenure (July, 2013 to March, 2015) for joining any further services.

 

Thanks / Harjinder

 

Kumar Doab (FIN)     09 April 2015

The deduction of Boarding and lodging from your Stipend?..............It seems to be the breach of agreement?

........What kind of training it is for which you to stay and feed yourself at your own expense.

 

The familiarization of products that an employee recruited to sell may not be such  'Training' at all that adds to qualification of employee........

 

 

Why an Engineering Company ........................even a "BhajiyaWaala'  may claim that his labor should sign an agreement to serve for .....................years..

 

Service Certificate has to be supplied to all employees....................

 

 

Seek help of an able Labor Law Consultant/Service Matters Lawyer/Law Firm dealing in Labor law cases...................

 

Keep this thread updated.


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