Service bond

The contents of bond are to be seen for giving any opinion o it. But generally this should not happen because the bond is for one year alone hence proportionately the amount claimed will be exorbitant. 

Consult a local lawyer and take his advise before proceeding with a decision. 

You have posted that:

“During the joining they asked me to sign a bond for one year. When 6 days remaining in  completion of  one year  i tell the management that i am going to leave the company. Management asked me to leave  on the same day i notitfied them and asked for resignation. I mail them the resignation on the same day. But now they asking me to pay money that is 3.5 lacks for breach of bond and do not provide me the experience letter . 

Please tell me what to do now?  “

Your communication is not clear!!

Did you consult elders in the family, competent and experienced well wishers, Employee’s/Trade Union Leaders before signing on the dotted lines in BOND and also while you decided to separate 6 days before expiry of BOND period?

What is this establishment registered as: Commercial,Industrial?

What is its line of business:IT,ITeS,banking etc?

How many maximum persons are employed in it at any point of time, before and after your joining?

Who has signed the offer letter: HR personnel or MD?

Did you record the threats (audio/visual/minuted/witnessed)?

The Redg Office, Corporate Office of the company, and your reporting office was located in which state?

What was your designation and nature of duties?

How many people were  reporting to you?

Were you to have any power to sanction leave/increment/appoint/terminate?

Do you have leave policy, HR policy, Service Rules and Regulations, Conduct and Discipline Rules, Exit Policy that are mentioned in the appointment letter?

What was your monthly salary?

Did the company ask you to sign PF,ESIC,Gratuity Forms etc?

Was any appointment letter, salary slip of 1st month, PF number, ESIC card,I.Card, given to you?

Did you resign in writing under proper acknowledgment (followed by letter under acknowledgment or by Redg. Post) , and mention NO tasks are pending at your end and to whom you should handover the charge?

Did you submit notice of resignation or resignation with immediate effect?

Has acknowledgment of notice of resignation, supplied to you?

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

Do you have copy of the BOND?

The BOND was drafted in lieu of what extar ordinary benefit by company to YOU?

You should provide full information, pointwise!

Line of Business- IT

In one year around 20 employees joined and more than 10 left.

HR personnel signed the document and she left the company after 3 months of my joining.

My office is in Noida(UP).

My designation was Sofatware Developer Trainee.

No People reporting to me

I do not have any power to sanction leave/increment/appoint/terminate

No policies like leave policy, HR policy, Service Rules and Regulations, Conduct and Discipline Rules, Exit Policy are mentioned in the appointment letter.

When joined the company my salary is 7K per month and I quit with 13 k per month

Company not ask me to sign any PF,EISC etc. form

I have Appointment letter and I card of the company

I sent my resignation through mail and no task remain pending when i quit

I do not have any copy of bond .

And i do not want to take any action against the company but company threating me and asking me to pay the 3.5 lakhs  for the breah of bond.

>>> You have not replied to all points e.g.

The BOND was drafted in lieu of what extar ordinary benefit by company to YOU?

Has acknowledgment of notice of resignation, supplied to you?

Did you record the threats (audio/visual/minuted/witnessed)?

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

Was any appointment letter, salary slip of 1st month (and all months), PF number, ESIC card,I.Card, given to you? 

>>> You may also reply to following:

Although your designation was ‘Sofatware Developer Trainee’ did you actually worked like a regular employee and generated profits for the company?

Did the company provide any classroom training from some certified Instt. and paid for it and provide certification to you? If yes what was the actual cost of the training?

Did you register with NSR/NASSCHOM and shared your PIN with employer?

>>>You have posted that:

“And i do not want to take any action against the company but company threating me and asking me to pay the 3.5 lakhs  for the breah of bond.“

You will need to take some action to defend your interest!

 OR

You may pay Rs.3.5Lacs like a gentleman and be at peace with you.

If you thought of litigation and expenses and that is why you felt like that then your employee’s/trade Unions can defend you and may not charge at all!

>>> The company shall need to produce the copy of the BOND to stake a claim from you.

The word trainee may just be an eyewash and a status created by the company crafted on paper to hoodwink the employee and  law of the land and must not be a ‘Trainee’ as envisaged ‘Apprentice’ as in Apprenticeship Act!

If you were not apprentice then you were eligible for PF,ESIC etc.

Thus the PF,ESIC, Gratuity everything was applicable to you.

The company seems to have defaulted and committed illegality by not providing all of these to you and has breached the trust as well.

>>> The salary slip should have been provided for each month.

>>> There are unlimited numbers of threads on similar query at LCI and you can search and go thru these e.g:

https://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp#.VaioI7V-jMo

https://www.lawyersclubindia.com/forum/Breaching-service-agreement-solution--123924.asp#.VbMuybV-jMo

https://www.lawyersclubindia.com/experts/Enforceability-of-employment-service-surety-bond--549946.asp#.VbZh_rV-jMo

No extra Benefit is provided to me.

Acknowledgment of notice of resignation is not provide to me but they sent me an email reply to resignation saying that they are taking legal action against me.

I am not a member of any employee’s/Trade Unions.

I have an appointment letter and I-card provided by the company.

I worked as regular employee and i am not an apprentice.

No training was provided to me from anywhere and i do not have any certificate of training also.

No i am not  register with NSR/NASSCHOM

Actualy  i joined the company as a fresher. 

>>> You have posted that:

“No extra Benefit is provided to me.

Acknowledgment of notice of resignation is not provide to me but they sent me an email reply to resignation saying that they are taking legal action against me.

I am not a member of any employee’s/Trade Unions.

I have an appointment letter and I-card provided by the company.

I worked as regular employee and i am not an apprentice.

No training was provided to me from anywhere and i do not have any certificate of training also.

No i am not  register with NSR/NASSCHOM

Actualy  i joined the company as a fresher. “

A Fresher is not necessarily a ‘Trainee’ or ‘Apprentice’.

You lawyer may opine to claim that NO training was ever given to you hence BOND is unconscionable, void.

>>> You have not replied to:

Did you submit notice of resignation or resignation with immediate effect?

“Was any salary slip of 1st month (and all months), PF number, ESIC card, given to you? ”

You may also reply:

What was the notice period mentioned in appointment letter?

You may claim that you had informed in office on dated:………(6 days before completion of 1 year ) that you want to tender notice of resignation of notice period of ……………days…………and you were pressed to send email then and there in office without any period mentioned in it…………….and you wanted to serve notice period………………..and thus you would have completed more then 1 year, however you were not allowed to serve notice period and were asked to leave.

How was salary paid to you; in Bank a/c or in cash? Did you sign any cash vouchers: If yes do you have a copy of the vouchers?

Is your salary mentioned in appointment letter/confirmation letter issued to you?

What is written against Rs.7000/ and/or Rs.13000/: salary or stipend?

>>> As per the salary mentioned by you Rs.7000/ and/or Rs.13000/, you are covered by :Payment of Wages Act; and as per Sec13A, salary slip should be supplied at least a day before the disbursement of wages.As per this ACt the employer has to maintain the record of salarys lips for 3 years.

Some states like Kerala have covered IT employees by Min.Wages Act.You may check in your state. If covered then wage slip should have been supplied at least a day before the disbursement of wages.

You may also go thru: Min Wages (Central Rules) :26 (3,4):

In salary slip days worked, earned wages, OT, Bonus, leave encashment etc is to be mentioned and deduction of PF,ESIC etc is to be mentioned.

>>> Were you asked to work for more than 8hrs/day or 48 hrs/week? If yes OT @ double the wages is applicable and you may raise the demand of payment of OT.

In thread mentioned above also a judgment has been quoted:

https://www.lawyersclubindia.com/experts/Payment-of-indemnity-bond-419196.asp#.VbeLXbV-jMp

Delhi High Court

M/S. Sicpa India Limited vs Shri Manas Pratim Deb on 17 November, 2011

https://indiankanoon.org/doc/116592600/?type=print

As per it Pro rated payment of Bond money is allowed to employer.

In your case Rs.350000/365*6=Rs5754/ maximum may be applicable as per the judgment.

>>> You must demand the acknowledgment and acceptance of resignation, service certificate, relieving letter, salary slip of each month and last month also, FnF statement on letterhead under seal and signature………….showing computation of  earned wages/bonus/leave encashment/incentives reimbursements etc, NOC/NDC, Form16 as per correct FnF statement  etc……………..

>>> You can approach:

Employee’s unions/Trade Union leaders e.g. CITU/INTUC/AITUC/BMS etc

Able Labor Law Consultant/Service Matters Lawyer/Law Firm

And you counsels may opine that you are covered by the def. of ‘Employee’ as in Shops and Commercial Establishments Act, ‘Workman’ as in ID Act and can approach:

Inspector appointed under (Name of your state) Shops and Commercial Establishments Act, Payment of Wages Act,

O/o Labor Commissioner,

Civil Court

Higher officials of Dept. of Labor

The employer may respond to demand notice by unions/legal notice by lawyer or shall have to appear before lawful authority, court of law

I do not mention any notice period in resignation as my appointment letter has no such notice period.

Salary was paid in my Company bank account.

Salary is mentioned in my appointment letter as given below-

Your CTC is 84,000 per year.

Yes i was asked to work more than 8 hours a day and that the reason i left the company. He asked me to work 11-12 hours a day with out any OT.

And also last 1.5 months salary was not given to me which around Rs 17,000.

The employer has to compute and pay OT in monthly wages and pay it on fixed day of payment of wages and show OT in salary slip.There is a capping on OT hours as prescribed in (Name of your state) Shops and Commercial Establishments Act.You may claim OT.

The employer also has to record OT and payment of OT in various registers prescribed under (Name of your state) Shops and Commercial Establishments Rules

Non Payment of OT and salary is valid and justified reason for separation.

You can approach the froums and lawyer and unions as already suggested.

Thankyou very much for your reply and suggetions.Thankyou sir 

You are welcome. Hope you shall be able to resolve the matter now in your favor.

Employee should prefer to be part of employee's forums/unions/trade unions and be properly informed and retain access to an able Labor Law Consultant/Service Matters Lawyer.