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shanti (Curriculum Designer)     31 March 2013

Probation is both sides?

Hi,

I am working in an organization in Mumbai from Feb 18th till date. I am on a 3 months probation.  I am still on probation. Please look at points 4 and 16 and let me know if I will be in a legal wrangle if I leave the organization when in probation. What is the minimum notice period in probation. We get our salary only on 7th or 8th of every month as cheque, so will leave ater working atleast for a 12-15 day period without cliaming this for final settlement. Appointment letter details:

4. You will be on probation for a period of three months from the date of appointment. Your continuance in service will be subject to your performance (work, conduct and suitability) being found satisfactory by the Company. During probation the Company can terminate the employment without any notice period If Your work is not found satisfactory.

5. After completion of probation period, the Contract of Employment can be terminated by giving 01(One) months’ Notice or Basic salary in lieu there of from either side. The
notice for termination of contract is to be given in writing and one month’ notice period will be counted from the date on which the notice of termination given. The company reserves the right to take various administrative actions (for example, for withholding dues as part of the full and final settlement) if the 1 month’ notice period is not adhered to.

16. You will not join any competitor or ancillary or start your own business within 2 years of your leaving the services of the company unless allowed by the company in writing. The company reserves the right to take various administrative actions (for example, for withholding dues as part of the full and final settlement) as well as institution of police and criminal cases.



Learning

 4 Replies

Kumar Doab (FIN)     01 April 2013

 You have posted that:

---“ I am still on probation.”

During probation the Company can terminate the employment without any notice period If Your work is not found satisfactory.”

 

The contract of employment should promote equality.

 

During probation the employee should also be able to terminate without notice.

Although the company may cry for specific relief act and may claim that employee is not a workman and cross reference is not possible.

 

The employee should avoid abrupt termination and should tender some reasonable notice and during this period offer to handover the charge and company property and complete the exit formalities.

The notice of resignation should be aptly drafted and submitted under proper acknowledgment.

 

---“ You will not join any competitor or ancillary or start your own business within 2 years of your leaving the services of the company… as well as institution of police and criminal cases ………”

 

The language used by company can be termed unconscionable or excessively harsh or unreasonable or one sided

 

Negative covenant which restricts the employee beyond the period of employment are considered to be unreasonable, may be struck down as violative of agreement in restraint of trade, violative of Section 27 of the Indian Contract Act.

 

The company has incorporated Non-solicitation/Non compete clause.

 

It may be difficult to impose.

 

However if the company issues notice/legal notice to you, you may approach your lawyer to issue a fitting reply to the notice. If the pulls the employee to the court of law, court shall finally decide.

 

as well as institution of police and criminal cases.”

 

Is it a criminal action to look for source of livelihood and scout for employment?

 

What else an employee shall do –Sell Bhajiya?

 

--“ I am working in an organization in Mumbai”

If your establishment is covered under Shops and Establishments Act of Bombay, it should have displayed the registration certificate near entrance on notice board.

 

SE Act Bombay which is so employee friendly:

 

 

бб.Notice    of termination of service.

(b) for less than a year but more than three months, without giving such person at least fourteen days' notice in writing, or wages in lieu of such notice:

 

This may imply that for service less than 3 months no notice period/pay is applicable.

 

And

38. Application and amendment of the Payment of Wages Act.

(l) Notwithstanding anything contained in the Payment of Wages Act,  1936, (V  ?f

1936)………. the Inspector appointed under this Act shall be deemed to be the Inspector…herein referred to as "the said Act",…….for the purpose of the enforcement of hei provisions of the said Act within the local limits of his jurisdiction.

( Implies that the Inspector under SE Act shall be the Wages Inspector )

[?8 ?. Application of Act VIII of 1923 to employees of establishment.-The provisions of the Workmen's Compensation Act,  1923  (VIII  of  1923),  and the rules  made from time to time thereunder, shall,  mutatis mutandis,  apply to employees  of  an establishment to  which this Act applies, as if they were workmen within t! meaning of the Workmen's Compensation Act, 1923.

( Implies any employee under SE Act shall be eligible as if he is a workman and can invoke WC Act)

^[??-?.  Application of Industrial Employment (Standing Orders) Act to establishments.-The  provisions of the Industrial Employment (Standing Orders) Act,  1946,  in its application to the State of Maharashtra [(hereinafter in this section referred to as "the said Act"), and the rules and standing orders (including model standing orders) made thereunder from time to time, shall,  mutatis rnuimdis,  apply to  all establishments wherein fifty or more employees are employed and to which this Act applies, as if they were industrial establishment within the meaning of the said Act.

(Implies if company is under SE Act and if it has not framed its standing orders the model standing orders shall apply to all employees. Model Standing Orders are attached. You can also download from Dept. of Labor Maharashtra/Bombay website also. Thus while you can approach Inspector under SE Act you should also be eligible to approach Labor Inspector/ALC.)

{ Model Standing Orders: 3.               Tickets,  11.         Payment of wages,  13.       Termination of employment,  15.      Complaints, 17.  Liability of 17[employer].--, 18.          Exhibition of standing orders.-)

 

51.    Employer [and manager  to produce registers, records etc.  for inspection.

( Implies that if you lodge a complaint the Inspector can not check all records, your personnel file but can take these to his office. You may obtain certified copies and even peruse RTI route.)

Moreover the Inspector is under obligation report every two months as given in Sec.66

55.    False entries by employer and manager.

58.    Determination of employer for the purpose of this  Act.

--In the meantime kindly go thru the attachments.

Valuable advice of learned experts is sought.

 

 

 

 

 

 

 

 


Attached File : 128621418 the bombay shops establishments act.pdf, 128621418 model%20standing%20orders.doc downloaded: 127 times

Sudhir Kumar, Advocate (Advocate)     02 April 2013

well elaborated by Mr Doab

shanti (Curriculum Designer)     02 April 2013

Sir/madam,

Thank you very much for such a descripttive and befitting reply.

Hemang (Advocate)     03 April 2013

There is complete justification in Clause 4 indicating the terms and conditions. If the performance is not satisfactory, services can be terminated. The employer is not obliged to keep you more in the services. Clause 16 is unjust, unfair and arbitrary. Although, it is written, it is not binding to you. 

Hemang D. Rana

corporatearmour@gmail.com


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