Termination of legal service bond

1. X/2

2. Condition of notice pay in lieu of notice if applicable to employer can be implied applicable to employee.

The liability of employee is max. to compensate the shortfall in notice period by notice pay @ basic/gross as expressed in appointment letter.

3. Employee should mention In  notice of resignation ( by letter thru redg post/speed post followed by email with a copy to self, and read and received receipt if possible) addressed to good offices of appointing authority, MD/CEO, Head -HR the effective date of resignation ( refrain from asking relieving date, the date of termination in case of resignation is declared by employee) and demand in gentle tone to inform :

-the details of employee designated as replacement and express willingness to train the replacement employee upto and within effective date of resignation.

- to whom the company property and charge should be handed under acknowledgment on the spot, over within effective date of resignation, and smooth exit formalities.

- to assign only those tasks in routine which can be completed up to and within effective date of resignation.

In notice of resignation highlight all achievements till date, performance delivered, revenue generated, rewards/awards/ incentives/ trophies/ mementos etc earned, and take out printout of appraisals, appreciation emails/letters/certificates etc  and all other relevant record.

If the company does not inform the details of replacement employee, competent employee to take charge/company property ideally it may be handed over to HOD, reporting authority. Employee should record (audio/visual) the situation in which company employee declines to take company property/charge. Employee should submit minutes in writing (with a copy to self) addressed to good offices appointing authority, MD/CEO, Head -HR and company secretary that on dated...........Mr/Ms..........designation..........dept.......declined to take charge/company property, hence good offices should inform to whom it should be handed over. Reminder should be submitted regularly by letter/emails under acknowledgment.

-to supply acknowledgment of notice of resignation and resignation, settlement of dues, FNF statement, payment of dues payable at the end of company by bank DD only, work experience/service certificate, relieving letter, form 16, PF number/accumulation reports/ withdrawal-transfer forms, NDC/NOC on the last day on office i.e. effective date of resignation/latest within 2 days from last day on office.

Employee should seek an appointment from good offices and explain the matter and submit minutes of discussion in writing. If good offices do not grant interview in writing, employee may walk in, meet any of employee in good offices and submit minutes, of discussion and denial of interview by Mr/Ms…….

.Employer can decline leave during notice period as employer would like employee in seat during the entire notice period. Employee can resort to sick leave with proper medical certificate.

In such case employee should not burden with hypothetical/ imaginary situations, and rather should build favorable written record.

Such situations require exceptional levels of persuasion, persistence, reasoning, negotiation skills and application of rapport and goodwill. Line management/HR can help and employee should find a favoring resource. Intervention by good offices can make the exit easy.  

One month notice is reasonable good notice. It is employer’s responsibility to designate replacement and assign only those routine tasks to employee under notice which can be completed till last day in office.

Avoid any unpleasant situation and do not leave any room for company to charge you on any count.

Despite all this if company becomes adamant, vindictive, zealous, and resorts to termination or declaring the employee as absconding employee should be in apposition to contest it successfully and must approach a competent and experienced service lawyer with all record and give inputs in person. A competent lawyer shall structure the communications to be submitted to company and may choose to issue legal notice and appropriate forum e.g. O/o Labor Commissioner, civil courts.

Dear Kumar sir,

Thank you for your reply.

I am also working in the same organisation. I have some more doubts .

1. after signing the bond the employer have not given any training so still we required to pay X/2.But they have given training before the signing the bond.

2. the employer haven't mentioned anything about (if we not serve notice period this much of amount is to be paid). Just he mentiond the employee must give 2 months of prior notice.

3. compensate in shortfall of notice period does we can compensate with our remained leaves.

4. If employer wants to make it comlplicate and forced to releave in march and ask for X amount. If we  failed/not accepting to pay X amount. does he can go legally. If he goes legally does it make any problem for us to enter into other company or to going to other country too.

5. After signing the bond they have reduced many of  our perks. does we can show this also as a cause.

6. Can you tell us what are the major points to take care in writing the resignation letter.

Kindly approach a competent and experienced service lawyer at your location as ap, and show all records, give inputs in person, and your layer shall be able to advice on the merits.

1. If the bond was to provide training adding to your skill/qualification, bond had a scope to impose a time frame and proportionate cost for leaving the company before the period expressed in bond, and training was provided then you should also honor the spirit of the bond signed by you.

If no training was provided which added to your skill or qualification and bond is flaunted to make you bow to unethical, unprofessional conduct of the employer then employer has indulged into bad practices. Employer is violating the bond.

The employer can not charge the employee for conducting sessions on new products, marketing strategies, inputs strategy etc. Such type of sessions even if camouflaged as training can not be chargeable.

You need to express to your lawyer which kind of training was provided to you. The language in the bond can be tricky and there may be legal traps. Your lawyer shall be able to give you expert opinion, after examining the bond.

2. If employer has expressed in appointment letter that employer can terminate the employment by giving notice or salary in lieu of notice same can be implied to employee.

In case of shortfall in notice employer can at the most ask to compensate by notice pay.

However express yourself properly in notice of resignation as in previous post and do not leave any task incomplete and do not leave any room for charging you on any count.

Notice of one month is reasonable.

3. Paid leave is to encashed in FNF statement.

Wages can not be reduced. Employer may reduce or redefine the perks. You may express this to your lawyer and your lawyer can advice you best looking into which perks you are referring to. Were these perks expressed in appointment letter? Was your appointment based on remuneration expressed in CTC sheet?  Reduction in CTC can be a bone of contention for employee. Have you expressed it to good offices of company and sought redressal?

4. If employer has provided training and bond is signed by employee accepting the terms of training and bond employer can proceed to recover the proportionate amounts expressed in bond. If employer is right employer (and in case of unscrupulous employers even if it is wrong) can resort to bad reference check, adverse comments in relieving letter, recovery of bond amount? If employer is wrong employee can proceed to get a retraction from employer. If the employee is smart employee shall build favorable record while in employment and do not give any opportunity to employer to issue stinkers/memo/charge sheet and maintain record of all relevant documents/emails/appraisals/awards etc in personal file at home for use at appropriate time in appropriate forum. etc

The above is heartfelt opinion. Kindly approach your lawyer with all records. Your lawyer may opine that bond is illegal.

Valuable advice of learned experts/members is sought.

Dear kumar,

As per your suggestion i find a lawyer and shown the respective legal bond. He told me some points but still i have doubts. He raised that 

1. the bond is not registered 

2. he told only MD or CEO comes as a employer. no other person in organisation cant be employer. the bond represents that this refers to  Mr.XXXX (sr.mgr), abc company. If Mr.XXXX is authorised person they must provide you authorisation letter or they must mention in legal bond as this person is authoriesd by CEO or MD

3.the perks effecting the salary. the lawyer tells that mention in the resignation letter as this also a cause. so does we can keep.

4. about training the lawyer said if they have not given any training it cant be  valid. but if they provide training of any that  must be certified training then only it can be valid.

5. but at the end lawyer tells keep papers on april 1st only and mention in resignation letter as consider march salary as a notice period amount. but employer can accept this way.

6. lawyer told that the bond is not acceptable because of above reasons, then why not to keep papers now. I ask the same question he recommends to 5th point.

I like your comments on the above statements.

@ Kiran Kumar

You have posted that:

-"after signing the bond the employer have not given any training so still we required to pay X/2.But they have given training before the signing the bond."

If the essence of signing the bond is due to the training provided by employer employee shall serve the company for............period or compensate by paying ..........amount, but no training is provided, then where is the logic to impose the conditions of bond?

For the training provided before the date of signing the bond it is believed from your post no condition of serving the company for  a period..................or compensate .by paying ..........amount was accepted by you, then how come any question of making any payment shall arise? It is believed that there is no such condition accepted by you in appointment letter.

-You have shown the bond, appointment letter to your lawyer. As your lawyer has seen the documents thus the opinion of your lawyer shall be valid compared to any other opinion by an individual who has not seen the bond.

Your lawyer is right as if you put in your papers i.e. notice of resignation on 1st April, you shall be able to draw salary.

You may express in notice of resignation that notice pay may be adjusted in FNF statement and affirm that any amount payable at your end, as per FNF statement  you shall be issuing an a/c payee check against receipt on the spot by competent employee of the company. Another advantage is if your next employer is willing to compensate you for notice pay you shall not have to face dual tax.

@ Kiran Kumar

You have posted "at the end lawyer tells keep papers on april 1st only and mention in resignation letter as consider march salary as a notice period amount."

If you follow as suggested by your lawyer, the comapny shall adjust notice pay in FNf statement and thus you may be able to avoid dual tax.