Dear Nisha,
On other things, we both are on the same page, but I just commented on the portion wherein you stated that the bond system is per se illegal in India. All I wanted was to correct you on that point only. Otherwise, please go through my first post in the thread; you will find my answers are in your line itself. The only difference is that I didn't assume the absence or presence of any training given to the employee. Let the querier weigh the situation.
From India, New Delhi
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320On other things, we both are on the same page, but I just commented on the portion wherein you stated that the bond system is per se illegal in India. All I wanted was to correct you on that point only. Otherwise, please go through my first post in the thread; you will find my answers are in your line itself. The only difference is that I didn't assume the absence or presence of any training given to the employee. Let the querier weigh the situation.
From India, New Delhi
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Dear Mr. Kamal Kant/Ms. Nisha,
Presumptions and assumptions always mull over each other. I mean to say it so, everyone has their own view to understand the situation. It's just that we are all here to help each other and foresee a better site for our future HRians.
Well done all. Thanks for contributing your ideas to each post we see daily and performing at the outset level.
Dear Ms. Manju - Kindly respond to your thread and let us know how far the post was helpful.
From India, Visakhapatnam
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Presumptions and assumptions always mull over each other. I mean to say it so, everyone has their own view to understand the situation. It's just that we are all here to help each other and foresee a better site for our future HRians.
Well done all. Thanks for contributing your ideas to each post we see daily and performing at the outset level.
Dear Ms. Manju - Kindly respond to your thread and let us know how far the post was helpful.
From India, Visakhapatnam
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As per the issue described above, the probation period includes that any party, either employee or employer, can terminate the agreement with or without notice. So, in your case, she was given a notice period as well. One thing to note is that bonds can act as deterrents to employees during the probation period, and we cannot take any action on this.
From India, Hyderabad
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From India, Hyderabad
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Even if the service bond is executed to recover training costs from the employee, in case there is a breach of the contract, the employer cannot recover anything more than the actual reasonable expenses incurred by them to provide the said training. Moreover, the remarks sometimes made by some of the experts that the bond is legal are also not fully correct. Generally, such a bond is illegal as it is against Section 27 of the Contract Act as well as it violates Article 19 of our Constitution. The said Article guarantees freedom to all citizens to do any occupation, trade, or business or to practice any profession. However, it is valid if it is executed for any reasonable restraint, e.g., to recover training costs or to protect intellectual property rights. Any bond to restrict employment is absolutely void and illegal as it is bad in law. The Andhra Pradesh High Court in Bakelite Hylam v/s S.J. Hasan (1985 I LLJ 438) held that it is public policy to oppose all restraints upon liberty of individual action that are injurious to the interests of the State.
Moreover, the employee may challenge the contract on the ground that it was one-sided and not entered into voluntarily. The Supreme Court of India in Niranjan Shankar Golikari v/s The Century Spinning and Manufacturing Company Ltd. (1967 I LLJ 740) observed that restraints or negative covenants in the appointment or contract may be valid if they are reasonable.
From India, Delhi
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Moreover, the employee may challenge the contract on the ground that it was one-sided and not entered into voluntarily. The Supreme Court of India in Niranjan Shankar Golikari v/s The Century Spinning and Manufacturing Company Ltd. (1967 I LLJ 740) observed that restraints or negative covenants in the appointment or contract may be valid if they are reasonable.
From India, Delhi
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Thank you to all the members for their guidance and views from various aspects of the resignation process of an employee leaving a job in a natural process. I agree with you.
I have two to three points to express my views, based on the query of Manju:
1. As a small company, it is difficult to have fully formed HR policies and adopted procedures of the HR process. In the absence of the same, you can relieve her with the consent of the MD, as he has agreed based on her resignation. Relieving a person is based on job responsibilities, the role played in the organization, the time taken to get a replacement, and KT. The time taken to do all the above processes is normally considered as the notice period. It is not intended to recover money from the outgoing employee in the name of notice pay, but only to find a replacement, either internally or externally. It is at the discretion of the company to relieve a person.
2. Please introduce a practice of creating PAY SLIP in Excel and giving it to employees. Nowadays, the payments have to be made directly to the employees' banks, which has become mandatory above a certain salary limit, including the check no. as well.
3. When your MD has accepted her resignation, he has understood about the bond and notice period, then took the decision to relieve by giving a date as the last working day. He is the ultimate authority. There is no hard and fast rule that all employees executed a bond, and at the time of relieving should definitely pay and get out; it is against the law. The service bond works as support to business and should be executed judiciously.
By this, you might have gained a good amount of knowledge on the subject and benefited for the future, helping other readers too. Please understand my suggestion, if it works out good.
From India, Hyderabad
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I have two to three points to express my views, based on the query of Manju:
1. As a small company, it is difficult to have fully formed HR policies and adopted procedures of the HR process. In the absence of the same, you can relieve her with the consent of the MD, as he has agreed based on her resignation. Relieving a person is based on job responsibilities, the role played in the organization, the time taken to get a replacement, and KT. The time taken to do all the above processes is normally considered as the notice period. It is not intended to recover money from the outgoing employee in the name of notice pay, but only to find a replacement, either internally or externally. It is at the discretion of the company to relieve a person.
2. Please introduce a practice of creating PAY SLIP in Excel and giving it to employees. Nowadays, the payments have to be made directly to the employees' banks, which has become mandatory above a certain salary limit, including the check no. as well.
3. When your MD has accepted her resignation, he has understood about the bond and notice period, then took the decision to relieve by giving a date as the last working day. He is the ultimate authority. There is no hard and fast rule that all employees executed a bond, and at the time of relieving should definitely pay and get out; it is against the law. The service bond works as support to business and should be executed judiciously.
By this, you might have gained a good amount of knowledge on the subject and benefited for the future, helping other readers too. Please understand my suggestion, if it works out good.
From India, Hyderabad
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Lakshmi,
Thanks for your valuable points.
But her last date is now on 31st Oct 2012. Still now she has not yet submitted the Appraisal
letter am following her in the mail but no response from her side.
My boss informed me not to give her a Payslips & Relieving letter on the last date still submitting her letter. she was making changes in the attendance record my boss had noticed that lots of leave and permission in between this notice period.
i have prepared a payslips not in a Excel format please let me know need any changes in there because no deductions are there
Salary Certificate
This is to certify that Ms. ************** designated as “Web Designer” has been paid as salary the following amount from ***********
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00
Yours Sincerely
************
Managing Director
From India, Madras
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Thanks for your valuable points.
But her last date is now on 31st Oct 2012. Still now she has not yet submitted the Appraisal
letter am following her in the mail but no response from her side.
My boss informed me not to give her a Payslips & Relieving letter on the last date still submitting her letter. she was making changes in the attendance record my boss had noticed that lots of leave and permission in between this notice period.
i have prepared a payslips not in a Excel format please let me know need any changes in there because no deductions are there
Salary Certificate
This is to certify that Ms. ************** designated as “Web Designer” has been paid as salary the following amount from ***********
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00
Yours Sincerely
************
Managing Director
From India, Madras
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Dear All,
Thanks for all your valuable feedback.....
Finally i have discussed with my MD and changed our Appointment letter there is no bond and i have prepared a payslips also can you please give your suggestions on this
This is to certify that Ms. ********* designated as “Web Designer” has been paid as Consolidated salary for the period June’2012.
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00
Yours Sincerely
************
Managing Director
From India, Madras
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Thanks for all your valuable feedback.....
Finally i have discussed with my MD and changed our Appointment letter there is no bond and i have prepared a payslips also can you please give your suggestions on this
This is to certify that Ms. ********* designated as “Web Designer” has been paid as Consolidated salary for the period June’2012.
Earnings
Basic salary Rs. 9000.00
HRA Rs. 4500.00
Conveyance Allowance Rs. 800.00
Uniform Allowance Rs. 0.00
Medical Allowances Rs. 0.00
Other Allowance Rs. 700.00
Total Earnings Rs. 15000.00
Net Salary Rs. 15000.00
Yours Sincerely
************
Managing Director
From India, Madras
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