Hi VV, I think you have no choice, you have to go by your rule book. There's no point at this stage to consider ethics per se. You as a HR will have your task cut out. Otherwise your corporate governance will fail. What's your policy, he joined, then raise so many of his demands. By all means he's your regular employee whether he likes it or not is secondary. Wherever possible within your restrictions you can accommodate if really you don't want to lose him. Is the relaxing Bonding within your delegated powers and give enhanced salary ? Is he a crucial candidate, you got No.2 in the panel right ? Why you should worry, escalate the matter, take a legal opinion and leave it to your bosses to decide or organise a meeting with your boss & him and await what transpire there, for the present. Probably he has another offer on hand which might have looked better option, that may be a reason for his stand off with you.
From India, Bangalore
1077From India, Bangalore
Hi,
It is hardly a weeks time stint why you want to enforce the terms and conditions of Bond/ training agreement ?
Whether any software skills /concept training was imparted to the candidate within a week's time ?
There is no loss involved except the 90 days waiting period.
You should be happy that employee communicated his unwillingness within a week's time.
So no point of harassing the employee quoting the terms and conditions of bond and even if you proceed legally you will be expected to prove how it is going to loss to you ( as employer) and also you will be expected to substantiate the volume of training imparted.
As the proverb says "You can lead a horse to water but you can't make him drink" which means that you can give someone an opportunity but not force them to take it. Considering the short stint I would suggest you to let him go and close his file. You may mark his profile in not to hire list.
From India, Madras
It is hardly a weeks time stint why you want to enforce the terms and conditions of Bond/ training agreement ?
Whether any software skills /concept training was imparted to the candidate within a week's time ?
There is no loss involved except the 90 days waiting period.
You should be happy that employee communicated his unwillingness within a week's time.
So no point of harassing the employee quoting the terms and conditions of bond and even if you proceed legally you will be expected to prove how it is going to loss to you ( as employer) and also you will be expected to substantiate the volume of training imparted.
As the proverb says "You can lead a horse to water but you can't make him drink" which means that you can give someone an opportunity but not force them to take it. Considering the short stint I would suggest you to let him go and close his file. You may mark his profile in not to hire list.
From India, Madras
Hi
In case of Bond as well, you can not stop an employee to leave your organisation. Basis, below aspects:
1. Have you legally enforced a Bond - this can be seen by way of coercion in which you as a employer have a condition prior to joining, that Bond is compulsary and if the employee will not sign a Bond he will not get the job. As the employee wants to switch for the purpose of growth or the higher salary, he will accept your Bond condition but legally it will be treated as a forceful agreement as the same is one sided on employer terms and employee do not have any option for not signing it.
2. If you are binding a employee for a specified period i.e. 2 years bond - are you providing some training to that employee in return. If No, Bond is not enforceable and if Yes, you can claim the training cost from the employee if he leaves early.
3. Usually Bond have a specified fee to be recovered from the employee if he leaves early - you can recover that, but if you mentioned the higher amount which is unjustified and the employee does not pay you, you can approach court where this amount may be reduced and settlement will be done. Provided, enforceability of your Bond may be in question.
However, Bond is just a method to make fear in the mind of the employee so that he will not leave early but if the employee have well knowledge, he will sign your Bond, as you want because he knows that the terms are illegal and not enforceable.
From India, New Delhi
In case of Bond as well, you can not stop an employee to leave your organisation. Basis, below aspects:
1. Have you legally enforced a Bond - this can be seen by way of coercion in which you as a employer have a condition prior to joining, that Bond is compulsary and if the employee will not sign a Bond he will not get the job. As the employee wants to switch for the purpose of growth or the higher salary, he will accept your Bond condition but legally it will be treated as a forceful agreement as the same is one sided on employer terms and employee do not have any option for not signing it.
2. If you are binding a employee for a specified period i.e. 2 years bond - are you providing some training to that employee in return. If No, Bond is not enforceable and if Yes, you can claim the training cost from the employee if he leaves early.
3. Usually Bond have a specified fee to be recovered from the employee if he leaves early - you can recover that, but if you mentioned the higher amount which is unjustified and the employee does not pay you, you can approach court where this amount may be reduced and settlement will be done. Provided, enforceability of your Bond may be in question.
However, Bond is just a method to make fear in the mind of the employee so that he will not leave early but if the employee have well knowledge, he will sign your Bond, as you want because he knows that the terms are illegal and not enforceable.
From India, New Delhi
Dear Vasavi,
First question to you from my side is that why should you do employment bond with employee ? if there is going on well planned and smooth.
There is somthing to be going on wrong and missing in your organisation in terms of work culture,oppurtunity of growth and learning,respecte of employee,company growth and management etc..then you are doing employment agreement with new comers.
so first you should do examine and evalute of work culture whether we are on the right direction. ? what should we do to bring improvement in the organisation to reduce employee turnover,culture so employee stay with company for long period.?
All this things matters to all company.
From India, Surat
First question to you from my side is that why should you do employment bond with employee ? if there is going on well planned and smooth.
There is somthing to be going on wrong and missing in your organisation in terms of work culture,oppurtunity of growth and learning,respecte of employee,company growth and management etc..then you are doing employment agreement with new comers.
so first you should do examine and evalute of work culture whether we are on the right direction. ? what should we do to bring improvement in the organisation to reduce employee turnover,culture so employee stay with company for long period.?
All this things matters to all company.
From India, Surat
Dear Vasavi,
First question to you from my side is that why should you do employment bond with employee ? if there is going on well planned and smooth.
There is somthing to be going on wrong and missing in your organisation in terms of work culture,oppurtunity of growth and learning,respecte of employee,company growth and management etc..then you are doing employment agreement with new comers.
so first you should do examine and evalute of work culture whether we are on the right direction. ? what should we do to bring improvement in the organisation to reduce employee turnover,culture so employee stay with company for long period.?
All this things matters to all company.
From India, Surat
First question to you from my side is that why should you do employment bond with employee ? if there is going on well planned and smooth.
There is somthing to be going on wrong and missing in your organisation in terms of work culture,oppurtunity of growth and learning,respecte of employee,company growth and management etc..then you are doing employment agreement with new comers.
so first you should do examine and evalute of work culture whether we are on the right direction. ? what should we do to bring improvement in the organisation to reduce employee turnover,culture so employee stay with company for long period.?
All this things matters to all company.
From India, Surat
All pharma companys are notorious in settling the issues of salary, expense, leave encashment, expense etc. barring few mutinationals. I am fighting in labour court for the last 10 years as employee of Alembic Pharmaceuticals Ltd. and have been successful in catching hold of them. for details you can send mail or connect on my mobile 9451544804.
From India, Kanpur
From India, Kanpur
Hi Vasavi,
I understand and would agree with your concern. I'm an HR professional at an e-commerce company in Coimbatore. Before I started consulting here, the Founder also faced the same issue of people just leaving abruptly. And people will come anytime they want and ask for a salary for the days they have worked.
So, I've imposed certain policies after employees agreed.
1) 10% of the salary every month will be held as a security deposit. It will be released after they end their employment with the company only after assessing their performance and behaviour. If any issues, they will be deducted from that 10%.
2) A clear NDA is asked to sign stating certain clauses of penalty. All the penalties and clauses are explained to every employee by me. Everyone has signed on to it. The penalty is like...
a) if they want to stop employment immediately without any prior notice. The entire salary will be held by the company. No salary will be released.
b) if they want to stop employment immediately with prior notice. 7 days' salary will be held. The same implies in terms of bad organisational behaviour
c) If the company terminates any employee, the company can either hold the entire salary or 7 days' salary based on the issue.
d) After signing the NDA, they or anyone from the family or friends cannot dispute over salary.
Every point in the NDA is clearly explained to every employee and duly signed. This has brought great discipline and helped the company to solve issues like this.
Thanks
Gauri
I understand and would agree with your concern. I'm an HR professional at an e-commerce company in Coimbatore. Before I started consulting here, the Founder also faced the same issue of people just leaving abruptly. And people will come anytime they want and ask for a salary for the days they have worked.
So, I've imposed certain policies after employees agreed.
1) 10% of the salary every month will be held as a security deposit. It will be released after they end their employment with the company only after assessing their performance and behaviour. If any issues, they will be deducted from that 10%.
2) A clear NDA is asked to sign stating certain clauses of penalty. All the penalties and clauses are explained to every employee by me. Everyone has signed on to it. The penalty is like...
a) if they want to stop employment immediately without any prior notice. The entire salary will be held by the company. No salary will be released.
b) if they want to stop employment immediately with prior notice. 7 days' salary will be held. The same implies in terms of bad organisational behaviour
c) If the company terminates any employee, the company can either hold the entire salary or 7 days' salary based on the issue.
d) After signing the NDA, they or anyone from the family or friends cannot dispute over salary.
Every point in the NDA is clearly explained to every employee and duly signed. This has brought great discipline and helped the company to solve issues like this.
Thanks
Gauri
Hi,
" 1) 10% of the salary every month will be held as a security deposit. It will be released after they end their employment with the company only after assessing their performance and behavior. If any issues, they will be deducted from that 10%. "
Not a right practice and purely against law.
As per Payment of Wages Act only certain permissible deductions are allowed ( Refer Section 7 of Payment of Wages Act)
Added to the above you claim that 10% of withheld salary will be released to the employee at the end of employment term only that even after assessing their performance and behavior. This not at all making sense. If employee is having performance and behavior issues why he /she is allowed to continue ?
Whether any interest amount will be paid for the amount deducted from salary. If the employee work for considerable very long years employer is supposed to release huge amount. Will it not be a burden to the Employer?
While your intention to safeguard the interest of the employer is right the method followed is not right.
As an alternative you may introduce Retention Bonus Policy. Make all employees eligible for some amount on monthly basis ( amount will be separate and out of monthly gross/ctc salary). Let that amount get accumulated on monthly basis.Fix some criteria that the said amount will be released only if employee completes this much years. This is legal as this amount will not be part of salary of the employee.
From India, Madras
" 1) 10% of the salary every month will be held as a security deposit. It will be released after they end their employment with the company only after assessing their performance and behavior. If any issues, they will be deducted from that 10%. "
Not a right practice and purely against law.
As per Payment of Wages Act only certain permissible deductions are allowed ( Refer Section 7 of Payment of Wages Act)
Added to the above you claim that 10% of withheld salary will be released to the employee at the end of employment term only that even after assessing their performance and behavior. This not at all making sense. If employee is having performance and behavior issues why he /she is allowed to continue ?
Whether any interest amount will be paid for the amount deducted from salary. If the employee work for considerable very long years employer is supposed to release huge amount. Will it not be a burden to the Employer?
While your intention to safeguard the interest of the employer is right the method followed is not right.
As an alternative you may introduce Retention Bonus Policy. Make all employees eligible for some amount on monthly basis ( amount will be separate and out of monthly gross/ctc salary). Let that amount get accumulated on monthly basis.Fix some criteria that the said amount will be released only if employee completes this much years. This is legal as this amount will not be part of salary of the employee.
From India, Madras
Ms. Gauri,
Do you know what a NDA is?
Please ask your lawyers to explain it to you.
The NDA is invalid on many counts, one of which is illegal deductions violating payment of wages act.
Second again under all labour laws, you can not refuse to pay the salary. At best you can do is to deduct the notice period salary. You can face serious legal consequences. And yes, there are NGOs just waiting to get such juicy cases and they have finds to fight you
Besides, most good employees will laugh and walk off during interview. You will be getting the more ,pathetic once’s can’t get em-loved elsewhere
From India, Mumbai
Do you know what a NDA is?
Please ask your lawyers to explain it to you.
The NDA is invalid on many counts, one of which is illegal deductions violating payment of wages act.
Second again under all labour laws, you can not refuse to pay the salary. At best you can do is to deduct the notice period salary. You can face serious legal consequences. And yes, there are NGOs just waiting to get such juicy cases and they have finds to fight you
Besides, most good employees will laugh and walk off during interview. You will be getting the more ,pathetic once’s can’t get em-loved elsewhere
From India, Mumbai
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