Kanav sahgal (Fo) 28 September 2011

Non payment of salary and effect on ond

I am working with a LTD company.i have a bond of 25 lacs with my employer.8 have not been paid for 4 months. 1) can i resign now and is the bond still valid considering my employer has not paid me. 2)if my resignation is accepted will the employer still have to pay me 4 months unpaid salary?what action can i take if ey don't. 3) normal notice period is 6 months.can i resign without mandatory notice period considering i have not been paid. P.s- no employee has been paid and the company has not filed for bankruptcy.

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(Guest)

Dear Kanwal,

Probably you have been duped by the company by getting a bond of such a big amount of Rs.25 Lakhs with a more stringent notice period condition of 6 months to resign. The intention of the company by not paying you the salary clearly seems to compel you to resign and then claim Rs. 25 lakhs from you along with notice period pay also. Naturally, the company, not only has taken free job from you, also intends to adjust your due salary of 4 months towards notice period pay and still claim more money from you.

By the way what biggest package was offered by the company to you that you were compelled to sign such a bond for 25 lakhs with another condition of 6 months' notice period?

About your questions:

1) You can resign but would be bound to pay a bond amount of Rs.25 lakhs besides 6 moths salary in liew of notice period unless you get the bond treated as null and void by an order of the court by challenging such severe terms and the intentions of the company by not paying you the salary for the last 4 months;

2) Employer is bound to pay your salary for the period of duty rendered to the company;

3) You cannot resign without observing notice period merely with the plea that the company has not paid you the salary. Please see reply to question #1 also.

If none of the employees have been paid, better all should file cases with the court of law (1) to get unpaid salary; (2) to get the bond/ agreement treated as void legally so that you should not be treated as bandhak (bonded labour) of the company. Rationality on the part of the company is a must.

Originally posted by :Kanav sahgal

I am working with a LTD company.i have a bond of 25 lacs with my employer.8 have not been paid for 4 months.
1) can i resign now and is the bond still valid considering my employer has not paid me.
2)if my resignation is accepted will the employer still have to pay me 4 months unpaid salary?what action can i take if ey don't.
3) normal notice period is 6 months.can i resign without mandatory notice period considering i have not been paid.

P.s- no employee has been paid and the company has not filed for bankruptcy.

(Guest)

Can you send me detail of the case through email [ dcgroup1962@gmail.com ] for detailed scrutiny along with scanned copy of your offer letter and bond?

Kumar Doab (FIN) 28 September 2011

Learned Mr. Dhingra has provided very concise and precise reply to your queries and valuable advice. Kindly follow the advice and all of you should join together and liberate from this employer and bond. The evaluations of your documents by learned Mr. Dhingra shall provide you clarity and you shall be able to handle situations in future in much better manner.

Reasonable notice period for senior executives is 3 months. You may mention your designation and nature of duties, and evaluate the route thru o/o Labor commissioner. The intent and conduct of employer is bad and this employer is unworthy of being employed with. This employer is inclined to squeeze money from hapless, ignorant, innocent employees with unfair practices.

In future kindly consult the elders in the family, experienced and competent well wishers, lawyer/law firm before taking hasty decisions and jumping to sign on the dotted line, and encourage all your near and dear ones to do so and stay away from the traps of such unscrupulous employers. Seeking advice before committing blunder is always better.