I've recently joined a company, but they are asking me to submit a cheque equivalent to a month's salary in advance. They mention that if I quit the organization within a year, they will redeem the amount through a cheque. Is this practice illegal? What should I do now?
From India, New Delhi
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3From India, New Delhi
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It speaks the standard of the company you are employed. I don’t whether it is legal or not but definitely it is not a ethical company. Pon
From India, Lucknow
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From India, Lucknow
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It is an illegal practice. It shows bad HR practice also. better don’t accept such offers because such companies are not good places to work. Madhu.T.K
From India, Kannur
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From India, Kannur
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Dear Member I am 100% agree with Mr Madhu T K version, the practice adopted by the company is against the provisions of Labour laws and against the principal of natural justice. Regards R B Rao
From India, Gurugram
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From India, Gurugram
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It may not be ethical, but it is not illegal. A lot of companies are following this practice as the percentage of employees jumping the bonds has increased. You have a choice of either joining the company or quitting the same as they are asking for the cheque.
I have come across many companies, good companies, who follow this practice. Therefore, it would be too premature to judge the organization only on the basis of one aspect. The move is only to safeguard the interest of the company.
From India, Pune
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I have come across many companies, good companies, who follow this practice. Therefore, it would be too premature to judge the organization only on the basis of one aspect. The move is only to safeguard the interest of the company.
From India, Pune
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This practice is unethical. It is legal only if it is mentioned in the appointment order which the employee receives and accepts prior to his joining the company. Organizations cannot conduct their operations as per their whims and fancies with utter disregard for good practices and legal provisions. Just because a host of companies indulge in illegal practices, it does not become legal.
From India, Bangalore
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From India, Bangalore
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It is both unethical and illegal. You should not see the matter from the company's perspective alone. The company needs human power, and you cannot say that the labor is just hungry for employment. It is common that people leave without following the normal practices, but just think, why should people leave if the organization is good? I have not seen high attrition in good places to work, but at the same time, attrition is very high where the system itself is wrong or faulty. Only organizations that feel that people will not be happy to be with them will collect undated cheques.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Thank you all for your replies. But I am curious to know what could I do against such a firm? If we can't do anything except abhorring the organization, then what's the use of sharing experience here. Just as you all know, I didn't join that company. Though I do have a few remedies, yet I would like you all to share your opinion first.
From India, New Delhi
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From India, New Delhi
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