Dear HR Colleague,
What do we do when employees run away? Especially when they have signed a bond to work two years?
We employee guys and train them on high end softwares and they run away after a few months? Even though they have signed a bond before being trained employees quit with out notice.
Is there a way we can take any action on them?
Thanks in advance to your replies.
Regards
Praveen
From India
11What do we do when employees run away? Especially when they have signed a bond to work two years?
We employee guys and train them on high end softwares and they run away after a few months? Even though they have signed a bond before being trained employees quit with out notice.
Is there a way we can take any action on them?
Thanks in advance to your replies.
Regards
Praveen
From India
Hi! ,
This is a good question . but you can not do anything it will be simple waste of time because in most of the case the job security for a employee in pen and paper is just one month.
And whet ever agreement you do it is one sided means it is all written whatever employee will no not the employer.
Moreever you can do something about the employee if the job is permanant in nature mean you cannot lay off and you provide PF/insurance to the employee then you can go to court.
Regards
Patra
From India
This is a good question . but you can not do anything it will be simple waste of time because in most of the case the job security for a employee in pen and paper is just one month.
And whet ever agreement you do it is one sided means it is all written whatever employee will no not the employer.
Moreever you can do something about the employee if the job is permanant in nature mean you cannot lay off and you provide PF/insurance to the employee then you can go to court.
Regards
Patra
From India
Dear Praveen,
The issue of signing employee bond is bad in law, but not illegal.
Anyway, it is a separate issue which can be discussed and argued some other times.
The remedy for you is that if there is a compensation clause in the Bond Agreement, the Company can file for a money suit under violation of contract as per the indian Contract Act.
Regards,
SC
From India, Thane
The issue of signing employee bond is bad in law, but not illegal.
Anyway, it is a separate issue which can be discussed and argued some other times.
The remedy for you is that if there is a compensation clause in the Bond Agreement, the Company can file for a money suit under violation of contract as per the indian Contract Act.
Regards,
SC
From India, Thane
Hi Patra & Praveen,
Very interesting topic.
This is not only happening in IT/ITES sector but in other sectors also. We are unable to do anything with people after doing eight or nine months service suddenly found missing and despite sending many notices and memos there will not be any use. He might have gone abroad or he must have shifted to other place and joined another job. Most of the companies these days are recruitment frenzy and they do not bother to go through the antecedents check process so meticulously as they have to meet the recruitment targets either by hook or crook (or by poaching). As a result, some employees are joining in some organizations without submitting proper relieving letters and service certificates. Although they are deemed to be working in two companies which is a case of dual employment which is against law, it cannot be proved before law and the whereabouts of such person are unknown.
We cannot hold their statutory benefits like PF as they can always claim by submitting respective forms by getting the attestation from a sarpanch, MRO (Mandal Revenue Officer) or even a gazetted officer. So these things of holding the statutory benefits are of no use. We can go to court or release an advertisement in newspapers saying that so and so employee is absconding from duty and he was not relieved officially in the existing company and he should not be engaged in any other company. But these are time consuming exercises and we are not sure whether these can yield the expected results or not. In such cases, I wanted to know the procedure to be adopted to bring back the employee and relieve him officially by due settlement of his account with the company. How to deal with these cases of absconding from employment and dual employment? Any ideas and laws?
Regards,
PRADEEP
From India, Hyderabad
Very interesting topic.
This is not only happening in IT/ITES sector but in other sectors also. We are unable to do anything with people after doing eight or nine months service suddenly found missing and despite sending many notices and memos there will not be any use. He might have gone abroad or he must have shifted to other place and joined another job. Most of the companies these days are recruitment frenzy and they do not bother to go through the antecedents check process so meticulously as they have to meet the recruitment targets either by hook or crook (or by poaching). As a result, some employees are joining in some organizations without submitting proper relieving letters and service certificates. Although they are deemed to be working in two companies which is a case of dual employment which is against law, it cannot be proved before law and the whereabouts of such person are unknown.
We cannot hold their statutory benefits like PF as they can always claim by submitting respective forms by getting the attestation from a sarpanch, MRO (Mandal Revenue Officer) or even a gazetted officer. So these things of holding the statutory benefits are of no use. We can go to court or release an advertisement in newspapers saying that so and so employee is absconding from duty and he was not relieved officially in the existing company and he should not be engaged in any other company. But these are time consuming exercises and we are not sure whether these can yield the expected results or not. In such cases, I wanted to know the procedure to be adopted to bring back the employee and relieve him officially by due settlement of his account with the company. How to deal with these cases of absconding from employment and dual employment? Any ideas and laws?
Regards,
PRADEEP
From India, Hyderabad
Dear Pradeep,
The only way out is to go to Court.
What I cannot understand is why do you want to take the trouble of bringing him back and officially releasing him.His statutory dues like PF will have to been given to him when he applies as you have stated and this PF Fund is with the EPFO unless you have a separate PF trust. In the latter case also, it is not an issue that should bother the Company. What most progressive Companies do is to make the full and final settlement and if it requires to pay the candidate that ammount is included in the budget and carrier forward. If it is the other way round, the provision is kept as per standard accounting procedures.
Another practice which is followed is to keep any original document like passport, Birth Proof ect. This method although sometimes effective usually become counterproductive and I am personally against it.
Regards,
SC
From India, Thane
The only way out is to go to Court.
What I cannot understand is why do you want to take the trouble of bringing him back and officially releasing him.His statutory dues like PF will have to been given to him when he applies as you have stated and this PF Fund is with the EPFO unless you have a separate PF trust. In the latter case also, it is not an issue that should bother the Company. What most progressive Companies do is to make the full and final settlement and if it requires to pay the candidate that ammount is included in the budget and carrier forward. If it is the other way round, the provision is kept as per standard accounting procedures.
Another practice which is followed is to keep any original document like passport, Birth Proof ect. This method although sometimes effective usually become counterproductive and I am personally against it.
Regards,
SC
From India, Thane
Hi! ,
We can only minimize such case by asking employee to give some notice period and settile down the case.
As per law you can come to a bond with the employee on that case
you have to write what are the facility you will give to the employee
in the bond period in details and if you terminate the guy how much you will pay.
As per the law "There can't be a agreement in between a Lion and rat"
because they are not equally strong party and employee will tell he did,t have any job thats why he has take that.
At court the case will not stand it is just waste of time and money unless that guy took some of your patent /IP/source code. That you have to prove at court.
I know people even go usa/uk from a company and change job there
company can't do anything.
My suggestion make a simple entry and exit i.e job at wish and try to retain employee by giving perks and good open work culture at work place. You can even create a bond which will give some mental pressure
to employee. I
Regards
Patra
From India
We can only minimize such case by asking employee to give some notice period and settile down the case.
As per law you can come to a bond with the employee on that case
you have to write what are the facility you will give to the employee
in the bond period in details and if you terminate the guy how much you will pay.
As per the law "There can't be a agreement in between a Lion and rat"
because they are not equally strong party and employee will tell he did,t have any job thats why he has take that.
At court the case will not stand it is just waste of time and money unless that guy took some of your patent /IP/source code. That you have to prove at court.
I know people even go usa/uk from a company and change job there
company can't do anything.
My suggestion make a simple entry and exit i.e job at wish and try to retain employee by giving perks and good open work culture at work place. You can even create a bond which will give some mental pressure
to employee. I
Regards
Patra
From India
I woudl like to mention here the services under the Indian Air Forces Act, in which a bond is signed so that a pilot is forced to render a fixed bond period or pay back for training in breach thereof, which is huge.
How are they able to enforce it?
As per mutual bonds, besides age proof or passport some security bond amount can also be held from the new recruitee.
The bond format can be -
SECURITY BOND
KNOW ALL MEN by this security bond we Ms. -----------------, W/o. -----------, R/o. -------------------------------, Ms. ------------, W/o. ---------, -----------------------------, Ms. S. ----------------- R/o. ---------------------------------------- are firmly held and bound unto Company name (here-in-after called (Short title of company name) which expression shall unless repugnant to the context or meaning thereof include its successors and assigns) in the sum of Rs. 15,000/- (Rupees fifteen thousand only) to be paid to the (name of Company) or its successors and assigns as the case may be for which payment we bind ourselves and our respective heirs, executors, administrators, jointly, severally, individually and respectively.
Signed this 15th day of March, 2006.
ABC
XYZ
ABY
WHEREAS the (name of Company) has agreed to employ Ms. ABC as Secretary on the terms and conditions contained in the letter of appointment dated 23rd February, 2006 subject to the applicable rules and regulations of the (name of Company) and further on the conditions that the employee furnishes a security bond in the sum of Rs. 15,000/- (Rupees fifteen thousand only) from herself and from two sureties assuring the services of the employee for a period not less than 3 years from the date of employment, i.e. w.e.f 01.03.2006 and also the faithful, honest and diligent performance and discharge of duties by the employee during the period of her service with the (name of Company).
Cont…2/
:: 2 ::
NOW THE CONDITION OF THE ABOVE WRITTEN BOND OR OBLIGATION is that if the employee shall serve the (name of Company) for a period of 36 months and shall all along during the continuity of her service with (name of Company) whether in the original or in any transferred post, during the said period of 3 years and thereafter if continues in employment of the (name of Company) always duly, faithfully, honestly and diligently perform and discharge the duties of such office or offices which she shall hold and exercise for the time being and indemnify and keep indemnified (name of Company) against all and every loss and damage suffered on account of any act of commission or omission or default on the part of the employee, then the above written bond or obligation shall be void and of no effect, otherwise the same shall be and remain in full force and virtue.
PROVIDED HOWEVER, notwithstanding anything here-in-before contained it is hereby mutually agreed and declared by and between the parties that the employee and the said sureties Ms. XYZand Mr. Aby shall not in any case be at liberty nor shall have the power to terminate their obligations, assurances, undertakings, suretyship under this bond before fully indemnifying the (name of Company)against all monies due or which may thereafter become due on account of the assurances etc. under the above written bond.
IN WITNESS WHEREOF we have signed this deed on the 16th day of March 2006.
ABC
XYZ
ABY
Witnesses:-
1.
2.
How are they able to enforce it?
As per mutual bonds, besides age proof or passport some security bond amount can also be held from the new recruitee.
The bond format can be -
SECURITY BOND
KNOW ALL MEN by this security bond we Ms. -----------------, W/o. -----------, R/o. -------------------------------, Ms. ------------, W/o. ---------, -----------------------------, Ms. S. ----------------- R/o. ---------------------------------------- are firmly held and bound unto Company name (here-in-after called (Short title of company name) which expression shall unless repugnant to the context or meaning thereof include its successors and assigns) in the sum of Rs. 15,000/- (Rupees fifteen thousand only) to be paid to the (name of Company) or its successors and assigns as the case may be for which payment we bind ourselves and our respective heirs, executors, administrators, jointly, severally, individually and respectively.
Signed this 15th day of March, 2006.
ABC
XYZ
ABY
WHEREAS the (name of Company) has agreed to employ Ms. ABC as Secretary on the terms and conditions contained in the letter of appointment dated 23rd February, 2006 subject to the applicable rules and regulations of the (name of Company) and further on the conditions that the employee furnishes a security bond in the sum of Rs. 15,000/- (Rupees fifteen thousand only) from herself and from two sureties assuring the services of the employee for a period not less than 3 years from the date of employment, i.e. w.e.f 01.03.2006 and also the faithful, honest and diligent performance and discharge of duties by the employee during the period of her service with the (name of Company).
Cont…2/
:: 2 ::
NOW THE CONDITION OF THE ABOVE WRITTEN BOND OR OBLIGATION is that if the employee shall serve the (name of Company) for a period of 36 months and shall all along during the continuity of her service with (name of Company) whether in the original or in any transferred post, during the said period of 3 years and thereafter if continues in employment of the (name of Company) always duly, faithfully, honestly and diligently perform and discharge the duties of such office or offices which she shall hold and exercise for the time being and indemnify and keep indemnified (name of Company) against all and every loss and damage suffered on account of any act of commission or omission or default on the part of the employee, then the above written bond or obligation shall be void and of no effect, otherwise the same shall be and remain in full force and virtue.
PROVIDED HOWEVER, notwithstanding anything here-in-before contained it is hereby mutually agreed and declared by and between the parties that the employee and the said sureties Ms. XYZand Mr. Aby shall not in any case be at liberty nor shall have the power to terminate their obligations, assurances, undertakings, suretyship under this bond before fully indemnifying the (name of Company)against all monies due or which may thereafter become due on account of the assurances etc. under the above written bond.
IN WITNESS WHEREOF we have signed this deed on the 16th day of March 2006.
ABC
XYZ
ABY
Witnesses:-
1.
2.
Dear Pradeep,
I think its is definitely our responsibility to make sure that employee leave organization ethically. Infact let me tell you there is definitely a stand in the court if you have a service agreement which is framed legally and under the guidance of reputed & professional lawyer. It definitely helps. Infact the court of law also justifies such cases if there was lot of efforts put in by the employers in training the employee & then not getting any result. So you can definitely pursue this case in the court becoz we need to put a stop to such steps taken by the employees. If we dont do this then there is no meaning of service agreement/ bond.
There is another way out why dont you keep bank guarantee of particular amount taken from the employee or post dated cheques which are returned every 6 months and at the end of the period of completion of bond formalities you can return all the cheques. This is really successful since I follow that in my company and let me tell you I have consulted lawyers before implementing this. And they are of opinion that if a cheque bounces, it is a criminal offence.
No HR professional wants to take such drastic steps. But todays job market has changed tremendously, so if we dont take such steps our company will continue facing problems.
Regards,
Pooja
From India, Pune
I think its is definitely our responsibility to make sure that employee leave organization ethically. Infact let me tell you there is definitely a stand in the court if you have a service agreement which is framed legally and under the guidance of reputed & professional lawyer. It definitely helps. Infact the court of law also justifies such cases if there was lot of efforts put in by the employers in training the employee & then not getting any result. So you can definitely pursue this case in the court becoz we need to put a stop to such steps taken by the employees. If we dont do this then there is no meaning of service agreement/ bond.
There is another way out why dont you keep bank guarantee of particular amount taken from the employee or post dated cheques which are returned every 6 months and at the end of the period of completion of bond formalities you can return all the cheques. This is really successful since I follow that in my company and let me tell you I have consulted lawyers before implementing this. And they are of opinion that if a cheque bounces, it is a criminal offence.
No HR professional wants to take such drastic steps. But todays job market has changed tremendously, so if we dont take such steps our company will continue facing problems.
Regards,
Pooja
From India, Pune
Hi Swastik & Patra,
Thank you for chipping in with some useful information.
As rightly pointed out by Swastik, better way out is to approach court to which I agree as the suitable alternative though it is a cumbersome process. Why I wanted the employee to come back and settle his account is to settle his dues to which we can adopt a process and write off at a later date to which also I agree. Even I am also against execution of bonds so that is ruled out. I just wanted to find out whether there is any other alternative to deal with these kind of employees. The reason is most of the managements point out as if it is a failure on the part of HR dept. if an employees absconds from the organization and joins its competitor without any intimation. In order to avoid such kind of humiliation and embarrassment at the hands of Management, is there any other way out to take swift and immediate action on such kind of employees?
Regards,
PRADEEP
From India, Hyderabad
Thank you for chipping in with some useful information.
As rightly pointed out by Swastik, better way out is to approach court to which I agree as the suitable alternative though it is a cumbersome process. Why I wanted the employee to come back and settle his account is to settle his dues to which we can adopt a process and write off at a later date to which also I agree. Even I am also against execution of bonds so that is ruled out. I just wanted to find out whether there is any other alternative to deal with these kind of employees. The reason is most of the managements point out as if it is a failure on the part of HR dept. if an employees absconds from the organization and joins its competitor without any intimation. In order to avoid such kind of humiliation and embarrassment at the hands of Management, is there any other way out to take swift and immediate action on such kind of employees?
Regards,
PRADEEP
From India, Hyderabad
Dear Pooja,
Thank you for that suggestion. Our company is not a IT or ITES company. We are into core Engineering and we train employees in softwares that are not available in any training institute. Best part is we pay employees to Learn and all we ask from them is 2 years of their service once they complete their training.
Till date we have not found any academy or college in the country which is conducting training on the tools we use in our industry.
It is very difficult to loose employees who leave us in the middle of a project and simply vanish. I know all bonds in this country are single sided and it is a very expensive matter in terms of time more than money to follow up.
But as a matter of principle and to deter others from doing the same we need a workable solution. We need some legal support to cut down on this type of behavior from employees. After all organisations also invest 3 to 5 times the salary they pay to an employee for his development.
Thank you all for your valuable inputs, but I need the best solution as we face this sort of problem time and again.
Regards
Praveen
From India
Thank you for that suggestion. Our company is not a IT or ITES company. We are into core Engineering and we train employees in softwares that are not available in any training institute. Best part is we pay employees to Learn and all we ask from them is 2 years of their service once they complete their training.
Till date we have not found any academy or college in the country which is conducting training on the tools we use in our industry.
It is very difficult to loose employees who leave us in the middle of a project and simply vanish. I know all bonds in this country are single sided and it is a very expensive matter in terms of time more than money to follow up.
But as a matter of principle and to deter others from doing the same we need a workable solution. We need some legal support to cut down on this type of behavior from employees. After all organisations also invest 3 to 5 times the salary they pay to an employee for his development.
Thank you all for your valuable inputs, but I need the best solution as we face this sort of problem time and again.
Regards
Praveen
From India
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Dispciplinary Action.doc