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Ratnesh Nagori (Software engg)     13 December 2011

Help need regarding breach of bond

Hi All,

I joined one of IT companies in India as a Trainee. On joining day they took our signatue on Service and Surity bond  which was for 2 years and in case of voilation we had to pay INR 1,00,000 to company.

I switched my job after completing 1+ year. At time of separation they didnt mentioned anything regarding bond. Also, in Full and Final settlement I didnt got anything about bond. My seperation process was smooth and as soon as my FnF was done, I received Service letter also.

Its been almost 1 year and 10 months I left company. Today, suddenly they posted a letter that you have breached the bond and you need to pay the amount to company withing 2 weeks. In case of failure, they will take legal action against me.

I want to know what can be done in this situation. What happens if I dont pay amount and a legal case is filed against me ? 

Please let me know your opinion. Appreciate your help.

Thanks

Ratnesh



Learning

 6 Replies

Kumar Doab (FIN)     13 December 2011

You have agreed to the terms of the bond. Company is within its rights to stake a claim as per terms of the bond.

Do you have any record to establish that you have performed and generated revenue and profits with your services for the company?

If you have copy of the bond, you may post it. You may remove the names etc for maintaining the confidentiality.

You need to contest the claim successfully if you feel that the claim is not justified. Have you received any training from the company worth Rs.1Lack?

It shall be appropriate to show all records and service agreement to a competent and experienced lawyer/law firm.

Majority of the IT firms enforce service agreement/bond, and almost all IT professionals sign on the dotted line without consulting or understanding the future implications. It is high time that the IT professionals should form community and unions and press for their rights and extend support to the peers in the industry.

You have received the service certificate. Have you received the relieving letter?

Relieving letter is issued post all settlements.

Has the company shown a negative entry in FNF statement?

Ratnesh Nagori (Software engg)     14 December 2011

Hi Kumar,

Thanks for reply. I will try to get the scanned copy of letter.

I have received the service certificate and relieving letter both. It was issued once full and final settlement was done. When FNF was done, i was asked to pay 10k as I just served  1 month notice period. I paid that amount and have confirmation also. 

Thanks

Ratnesh

Kumar Doab (FIN)     14 December 2011

Did you receive any letter demanding notice pay of Rs.10K? Have you received receipt of Rs.10K, and is it mentioned in receipt that payment of notice pay is received?

You have cleared the FNF, and have received relieving letter. Hence nothing is pending.

You may reply to the letter that nothing is pending at your end and enclose the copy of relieving letter and mention that this letter is unwarranted and is aimed at causing you unnecessary harassment, stress, and demand that the company should state in writing that nothing is due at your end and company shall state so in all reference checks in future. You may indicate in a gentle manner if any confusion is created by company by reference check or so affecting your future ventures, livelihood, you shall be constrained to proceed against the company at the cost and consequences of the company.

There is nothing wrong in meeting the concerned personnel in line management, HR and securing such letter, by persuasion, reasoning, persistence, negotiation. Thus you shall feel relieved.

Kumar Doab (FIN)     14 December 2011

Has the company posted any good/adverse comment in reliving letter or has left the Column for Conduct as blank.

You must try, perusing, and obtaining comments say" Conduct was good/behavior was satisfactory".

This shall leave nothing to speculations.

Ratnesh Nagori (Software engg)     15 December 2011

Hi Kumar,

Yes I received FnF statement to pay 10k and I received confirmation too. There was no receipt given, however, I have email confirmation from HR who received the DD of due amount.

Kumar Doab (FIN)     15 December 2011

After your last day in the company the employer-employee relationship has ended. Company has to issue receipt of the payment of Rs.10k to you. You may insist and persist. Submit a fitting reply to the letter of the company, under acknowledgment.


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