Is service bond is legal

very huge amount

Can i break without penality?

What is the gorund for creating bond/service agreement/

Has the compnay invested any amount on any specialized training adding to your specialised skill, qualification?

It shall be approrpiate to show the bond, appointment letter and all other relevant docs to a competent and experienced labor consultant/service lawyer specilizing in such matters.

In the meantime you may go thru attachments and give more details.

Yes they provided 3 months specialized training with stipend(8000).But they didn’t mentioned what will be the salary after 3 months training in appointment letter.

You have posted that:

--“Yes they provided 3 months specialized training with stipend(8000)”

You would know it better than anyone else if the training was specialized one or not?

If the training was to accustom the employee with the processes, operational-sales-marketing strategies, products of the company/ to run the machines of the company etc…then company should provide it without any cost to employee.

If it was indeed a specialized training then company must have penny wise break up/itemized detail of expense incurred on you.

The amounts claimed by the company as a penalty to employee/recovery from employee should be reasonable /sensible.If the engagement is by way of apprenticeship/training scheme then it should be in line with rules of the scheme.

The payout promised to you during training period is by way of a stipend.

Usually stipend is given to apprentice, trainee recruited under Apprenticeship Act or Standing Orders of the company.

The details, reference of the Act, nature of employer-employee relationship should ideally be stated in the appointment letter.

You may check your appointment letter for such details.

If you have been recruited as Trainee under standing orders of the company then certified copy of the standing orders should be obtained.

Standing orders should be displayed near entrance/on notice board and should be made available to employee against a nominal charge of say Rs.10/-.

--“But they didn’t mentioned what will be the salary after 3 months training in appointment letter.”

Your lawyer may find this as objectionable and a tactics to enslave the employee by bond without declaring to employee what he would be getting during period of bond.

The job advertisement of the company, appointment letter, service agreement may be shown to a competent and experienced labor consultant/service lawyer specializing in such matters and legal issues being faced may be discussed in person.

Based on documents shown by you, inputs given by you your lawyer may opine that he can prove that Employer is unworthy of being employed with/ you won’t have to pay any penalty/you may have to pay reasonable amount to company……and you can proceed accordingly as deemed fit ay your end.

You may go thru:

Central Apprenticeship Council

Government of India

Minis try of Human Resource Deve1opment guidelines on apprenticeship,

Apprenticeship Act,

scheme of apprenticeship for engineers (under The Apprentices Amendment Act 1973)

You may also log onto the details posted at website of

“ Board of Apprenticeship Training“ set up by government in your zone ( North, West, East, South)

e.g.;

https://www.boatnr.org/GeneralInfo1.html

-- FREQUENTLYASKEDQUESTIONS

--- STANDING ORDERS/SERVICE RULES AND REGULATIONS/ EMPLOYEE MANUAL

2.6. "TRAINEE / APPRENTICE /LEARNER" (Under the Management's Scheme)

---Apprenticeship Rules, 1992

6.Registration of Contract of Apprenticeship

8. Compensation for termination of apprenticeship

14. Record and returns

SCHEDULE-V

(See Rule 6)

Obligations of Employer (both in the case of Major and Minor Trade Apprentices).

                                       (Under section /I of the Apprentices Act, 1961)

Obligations of Trade Apprentice (both in case of Major and Minor Trade Apprentices)

                             (Under Section 12 of Apprentices Act. 1961).

5. In the event of premature termination of contract of apprenticeship for failure on the part of the apprentice to carry out the terms and conditions of contract, the surety or the guardian may be bound to pay the employer such amount as may be determined by the Central/State Apprenticeship Adviser as and towards the cost of training in accordance with rates as specified under rule 8 of the Apprenticeship rules,1991.

9. The first six months of the period of apprenticeship training shall be treated as period on probation. Either party may make as application to the Central/State Apprenticeship Adviser for the earlier termination of contract and when such an application is made the party making the application shall send by post a copy thereof to the other party to the contract. The Central/State Apprenticeship Adviser after considering the contents of the application and objectives, if any, filed by the other party, may terminate the contract, if he is satisfied that the parties to the contract, if any, of them have or has failed to carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate the same. Provided that the amount as stated in paras 1(6) and 11(5) of this schedule shall become payable by one party to the other accordingly as the failure is on the part of the employer or the apprentice

11. It shall not be obligatory on the part of the employer to offer any employment to the apprentice on completion of period of his apprenticeship training in his establishment nor shall it be obligatory on the part of the apprentice to accept an employment under the employer.

SCHEDULE VI

(See Rule 6)

2. It shall not be obligatory on the part of the employer to offer any employment to the apprentice on completion of period of apprenticeship training in his establishment nor shall it be obligatory on the part of the apprentice to accept an employment under the employer.

Note: If, however, there is a condition in the contract of Apprenticeship' that the apprentice shall, after the successful completion of training serve the employer, the employer shall, on such completion be bound to offer suitable employment to the apprentice and the apprentice shall be bound to serve the employer in that capacity for such period and for such remuneration as may be specified in the contract subject to the approval of the Central Apprenticeship Advisor.

Your lawyer may examine that your employer had any training scheme or rules and regulations for engaging trainees or not?

And you were engaged as “Trainee” only with a view to deny them the statutory benefits….

Your employer may not be able to produce any training scheme or rules and regulations for engaging trainees.

Valuable advice of learned experts/members is sought.