Hi,
With reference to above, i would like to bring few lines to your notice and possible suggestion.
I am employed with one of the IT company in Bangalore by signing a bond/service agreement letter for 2 years. I started working with this company since jan 09. Initially everything was well, and was working day/night to meet the necessary deadlines. However things started getting difficult as months proceeded. Here are the few things that happened.
1. First they reduced my salary to almost 30% what was offered at the time of joining the orgn.
2. When the query was asked, it was told that because of recession this action has been taken, but this is not true. Since all the employee were either given hike or no hike. In my case they took this action.
3. As days proceeded, my supervisor started ill-treating me in several fashions. As per the policy each employees can take cab/taxi expense after office hours especially in the late nights. However when i utilized the service and went for claim, he stated telling that you are going late because you didn't do the job within the scheduled time. Every employee was given but to my case this is the answer he provided.
4. After the business hours usually snacks were served to all the employee who are staying. However i was also utilizing this benefit, but again my supervisor started talking to me that i am staying here because of taking the snack. With this i was really depressed and i immediately stopped taking any of the snack from there onwards. This has happened in March 09 itself. i.e. after joining 3 months to this org.
5. Things started going worst and my supervisor started insulting me in front of my team member that i am incapable and started illtreating. By looking at this other colleuges who were juniors to me also started insulting me in the same line. With this i was really depressed and i went to my supervisor and asked me to give me some days of leave (i.e. on loss of pay) as i had some work. What came to his mind was that i am planning to leave and he immediatly called the corporate lawyer and this lawyer stared threatening me and this made me even more comfortable to work. He stared telling me that if he goes to court he will ensure that he will make my life misrable. With this i lost complete scope or focus to work here. This has happened in the month of Sept 09.
After few days Oct 09 month came and everybody salary was given and my salary was not given. The reason they started telling that i have to get a gurantor to complete the bonding process and till i get some one they salary will not be paid. Then i informed them that i don't have anybody to give an gurantor, but only my wife can sign for it. Which they didn't agreed, saying that the gurantor should be professional.
Some how i made them convencied and said that i will try to look for some professional who can sign in for me and got my salary credited on 17th Oct 2009. As per my promise i explained my position to few of my friends/colleuges to bail me out by signing the gurantor, but none of them were willing and i couldn't able to fulfil it. With this i informed them that i will not be in a position to get any one. After completing this excerise again in the month of Nov 09 they didn't credit my salary and with this act i become little angry and when enquired they informed me to get the gurantor. Then i thought that this is too much and just informed them that eighter provide me the salary or relieve me from the duty and i just left office informing them that if you want me to see as employee kindly credit my salary or relieve me from the service. Again they started indicating that the legal process will be initiated and will be suied as per the agreement.
This made me little anoyed and i started looking into the agreement and in that there was one point. The point says that in case if there is any change in the service agreement or company policy the agreement stands void. The exact sentence is as follows:-
If any provisions of this SERVICE AGREEMENT or application thereof to any party or circumstances shall be declare void, illegal or unenforceable, the reminder of this SERVICE AGREEMENT shall be valid and enforceable to the extent permitted by applicable law, in such event, parties shall use their best efforts to replace the invalid or unenforceable provisions by a provision that, to the extent permitted by the applicable law, achieves the purpose intended under the invalid or unenforceable provisions. Any deviation by either party from the terms and provisions of this SERVICE AGREEMENT in order to comply with applicable law, rules or regulations shall not be considered a breach of this SERVICE AGREEMENT.
Now with this point in mind i have asked them to relive me from the service of the orgn or make the new bond as per the agreement.
Now my question is :-
1. Can this point stands valid?
2. Since i had signed the agreement based on the policy and salary offered to me at the time of agreement and because of changing scenarios they have taken all the necessary benefits by taking 30 % of my salary. In addition they also made a new company policy indicating that the employee has to come to office before 10:00 AM and in case if he comes late by a minute he will be deemed to take 0.5 days of Loss of pay but has to work for 8 hours.
Kindly suggest me how shall i go about this, I would have not mind working for this orgn to complete my bonding time is completed, but this circumstances had made me or compled me to take this decision.
Requesting some one to kindly provide me some legal measures on this issue.
Thanks
sanji.
From India, Bangalore
With reference to above, i would like to bring few lines to your notice and possible suggestion.
I am employed with one of the IT company in Bangalore by signing a bond/service agreement letter for 2 years. I started working with this company since jan 09. Initially everything was well, and was working day/night to meet the necessary deadlines. However things started getting difficult as months proceeded. Here are the few things that happened.
1. First they reduced my salary to almost 30% what was offered at the time of joining the orgn.
2. When the query was asked, it was told that because of recession this action has been taken, but this is not true. Since all the employee were either given hike or no hike. In my case they took this action.
3. As days proceeded, my supervisor started ill-treating me in several fashions. As per the policy each employees can take cab/taxi expense after office hours especially in the late nights. However when i utilized the service and went for claim, he stated telling that you are going late because you didn't do the job within the scheduled time. Every employee was given but to my case this is the answer he provided.
4. After the business hours usually snacks were served to all the employee who are staying. However i was also utilizing this benefit, but again my supervisor started talking to me that i am staying here because of taking the snack. With this i was really depressed and i immediately stopped taking any of the snack from there onwards. This has happened in March 09 itself. i.e. after joining 3 months to this org.
5. Things started going worst and my supervisor started insulting me in front of my team member that i am incapable and started illtreating. By looking at this other colleuges who were juniors to me also started insulting me in the same line. With this i was really depressed and i went to my supervisor and asked me to give me some days of leave (i.e. on loss of pay) as i had some work. What came to his mind was that i am planning to leave and he immediatly called the corporate lawyer and this lawyer stared threatening me and this made me even more comfortable to work. He stared telling me that if he goes to court he will ensure that he will make my life misrable. With this i lost complete scope or focus to work here. This has happened in the month of Sept 09.
After few days Oct 09 month came and everybody salary was given and my salary was not given. The reason they started telling that i have to get a gurantor to complete the bonding process and till i get some one they salary will not be paid. Then i informed them that i don't have anybody to give an gurantor, but only my wife can sign for it. Which they didn't agreed, saying that the gurantor should be professional.
Some how i made them convencied and said that i will try to look for some professional who can sign in for me and got my salary credited on 17th Oct 2009. As per my promise i explained my position to few of my friends/colleuges to bail me out by signing the gurantor, but none of them were willing and i couldn't able to fulfil it. With this i informed them that i will not be in a position to get any one. After completing this excerise again in the month of Nov 09 they didn't credit my salary and with this act i become little angry and when enquired they informed me to get the gurantor. Then i thought that this is too much and just informed them that eighter provide me the salary or relieve me from the duty and i just left office informing them that if you want me to see as employee kindly credit my salary or relieve me from the service. Again they started indicating that the legal process will be initiated and will be suied as per the agreement.
This made me little anoyed and i started looking into the agreement and in that there was one point. The point says that in case if there is any change in the service agreement or company policy the agreement stands void. The exact sentence is as follows:-
If any provisions of this SERVICE AGREEMENT or application thereof to any party or circumstances shall be declare void, illegal or unenforceable, the reminder of this SERVICE AGREEMENT shall be valid and enforceable to the extent permitted by applicable law, in such event, parties shall use their best efforts to replace the invalid or unenforceable provisions by a provision that, to the extent permitted by the applicable law, achieves the purpose intended under the invalid or unenforceable provisions. Any deviation by either party from the terms and provisions of this SERVICE AGREEMENT in order to comply with applicable law, rules or regulations shall not be considered a breach of this SERVICE AGREEMENT.
Now with this point in mind i have asked them to relive me from the service of the orgn or make the new bond as per the agreement.
Now my question is :-
1. Can this point stands valid?
2. Since i had signed the agreement based on the policy and salary offered to me at the time of agreement and because of changing scenarios they have taken all the necessary benefits by taking 30 % of my salary. In addition they also made a new company policy indicating that the employee has to come to office before 10:00 AM and in case if he comes late by a minute he will be deemed to take 0.5 days of Loss of pay but has to work for 8 hours.
Kindly suggest me how shall i go about this, I would have not mind working for this orgn to complete my bonding time is completed, but this circumstances had made me or compled me to take this decision.
Requesting some one to kindly provide me some legal measures on this issue.
Thanks
sanji.
From India, Bangalore
Sanji,
As per Indian Labour Laws, bonds are illegal in India. They cannot be executed. You can take your organization to law.
There are some labour laws that protect the rights of employees. You can file a case with the Office of the Labour Commissioner.
For your reference i'm attaching an extract of some Laws introduced to benefit employees.
Hope things get better for you.
From India, Delhi
2As per Indian Labour Laws, bonds are illegal in India. They cannot be executed. You can take your organization to law.
There are some labour laws that protect the rights of employees. You can file a case with the Office of the Labour Commissioner.
For your reference i'm attaching an extract of some Laws introduced to benefit employees.
Hope things get better for you.
From India, Delhi
Hi Sahmina,
Thanks for the useful information provided by you. Just didn't get one information, inspite of bond/service agreement practise is illegal, why still so many organization are implementing. Is there is now law to curb this?
Also i have one more questions to be asked. What action can be taken in case my company will not provide me relieving letter. Is there is any laws clause that can be handy to obtain from them?
Regards
Sanji.
From India, Bangalore
Thanks for the useful information provided by you. Just didn't get one information, inspite of bond/service agreement practise is illegal, why still so many organization are implementing. Is there is now law to curb this?
Also i have one more questions to be asked. What action can be taken in case my company will not provide me relieving letter. Is there is any laws clause that can be handy to obtain from them?
Regards
Sanji.
From India, Bangalore
it very un ethical what the compny is doing u can claim against the company in the court .
From India, Hyderabad
From India, Hyderabad
Dear Seniors,
This is really a very bad practice is going on in industry, one of my friend is also facing the same problem, I am mentioning few lines of agreement, after his resign, company is not relieving him & neither giving him his full & final payment, also he has been threaten that they will sue him & they are planning lots of cases even under 420, to prove chitter or fraud. Now my querry is first, how a person can make himself safe from these peoples & second, how we can teach lessons to these organizations & last, today, the corporates are talking about CSR (corporate social responsibility), & on the other hand, they are doing such activities, advice how we can make aware to all corporates as well as employee to stop such bad practices.
That the first party agrees to work with the second party for at least 3 years and shall not leave the services of the second party during the period of next three years except in the case of continued ill-health in which case he can leave the company by giving three months prior notice or payment in lieu thereof.
6. That the first party agrees that in case he leaves the company during the period of this agreement, he undertakes to refund 50% of the gross emoluments paid to him during the period he remains in service in the period of this agreement in addition to any other damages and/or losses suffered by the second party. The amount of refund shall be determined by the second party and shall not be open to any question by the first party.
Regards,
Ameet
From India, Chandigarh
This is really a very bad practice is going on in industry, one of my friend is also facing the same problem, I am mentioning few lines of agreement, after his resign, company is not relieving him & neither giving him his full & final payment, also he has been threaten that they will sue him & they are planning lots of cases even under 420, to prove chitter or fraud. Now my querry is first, how a person can make himself safe from these peoples & second, how we can teach lessons to these organizations & last, today, the corporates are talking about CSR (corporate social responsibility), & on the other hand, they are doing such activities, advice how we can make aware to all corporates as well as employee to stop such bad practices.
That the first party agrees to work with the second party for at least 3 years and shall not leave the services of the second party during the period of next three years except in the case of continued ill-health in which case he can leave the company by giving three months prior notice or payment in lieu thereof.
6. That the first party agrees that in case he leaves the company during the period of this agreement, he undertakes to refund 50% of the gross emoluments paid to him during the period he remains in service in the period of this agreement in addition to any other damages and/or losses suffered by the second party. The amount of refund shall be determined by the second party and shall not be open to any question by the first party.
Regards,
Ameet
From India, Chandigarh
Sanji,
Your understanding of the extract you provided from your bond is not correct. That paragraph is not protecting you. It is protecting the company and upholding the rest of contract (in case one clause is deemed invalid, the rest of the contract will still be valid). So, do yourself a favor. Go to a Labor Lawyer with the “bond” you have signed. Have them review it. Find out how you can protect yourself. And serve a lawyer notice to the company to pay up their dues or relieve you from your job. Your “bond” in bits and pieces does not make much sense. It has to be read and understood in its entirety.
Bonded Labor was abolished decades ago in India. There is no such thing as bonded labor. No company can force their employees to sign a bond that can truly be enforced in a court of law.
That said, in the past two decades, the companies have gotten a little smarter. They frame the legal language in their "bond" such that
a. It usually doesn't mention the word "bond" anywhere (because it is illegal). It says “Service Agreement”
b. It outlines a scenario where, if the employee leaves the company within said period (2 or 3 or how many ever number of years), the company would be incurring losses in terms of lost business, lost reputation with the customers, trade secrets etc., or it will take the company 2 or 3 years (or whatever the number is) to benefit from the employee based on the investment they have done in the employee.
It is difficult for even such “bonds” to hold up in courts because
1. The company/employer has to prove (burden of proof is on them) with evidence that the company actually incurred losses because of the employee (it is not enough for a lawyer to stand in court and shout – my client incurred a HUGE loss. The court needs proof), and/or
2. The company/employer has to prove with evidence that they have actually “invested” money in the employee (again, a lawyer standing in court and shouting “My client invested $50,000 in this employee” is not enough. They need proof – bills etc.)
Knowing this fully well, why do company lawyers and HR have their new employees execute such fake “bonds”? It’s plain and simple – cashing on the need and ignorance of the job seeker. As a job seeker, you may be compelled to sign such a bond (because you NEED the job). And once you sign it, you are afraid that they will make your life miserable (because you are not fully aware of your rights as an employee), take you to court, will not let you get employment elsewhere etc. They try to cash in on your “fear” and “need”.
For all you job seekers/employees out there, I have two suggestions, one for those who are currently in this nasty situation (i.e., employees), and one for those who have the potential of landing in such a situation (i.e., job seekers).
1. If you are currently in this situation, take the contract/bond you signed to a labor lawyer. Explain him/her the situation, have them review the “bond” and tell you the validity of the bond and how you can protect yourself
2. If you are currently seeking a job and are asked to sign such a bond, don’t just read it, think that you know English very well and you understand it, and sign it. Legal Language IS NOT ENGLISH. It is completely a different language that resembles English. So, please do yourself a favor, take it to a Labor Lawyer, have them review it, ask questions regarding the validity of the service agreement and how you can protect yourself from it. Do these BEFORE you sign any such bonds.
Hopefully, you will have a more peaceful life.
All the best.
Regards,
-Som G
From United States, Woodinville
Your understanding of the extract you provided from your bond is not correct. That paragraph is not protecting you. It is protecting the company and upholding the rest of contract (in case one clause is deemed invalid, the rest of the contract will still be valid). So, do yourself a favor. Go to a Labor Lawyer with the “bond” you have signed. Have them review it. Find out how you can protect yourself. And serve a lawyer notice to the company to pay up their dues or relieve you from your job. Your “bond” in bits and pieces does not make much sense. It has to be read and understood in its entirety.
Bonded Labor was abolished decades ago in India. There is no such thing as bonded labor. No company can force their employees to sign a bond that can truly be enforced in a court of law.
That said, in the past two decades, the companies have gotten a little smarter. They frame the legal language in their "bond" such that
a. It usually doesn't mention the word "bond" anywhere (because it is illegal). It says “Service Agreement”
b. It outlines a scenario where, if the employee leaves the company within said period (2 or 3 or how many ever number of years), the company would be incurring losses in terms of lost business, lost reputation with the customers, trade secrets etc., or it will take the company 2 or 3 years (or whatever the number is) to benefit from the employee based on the investment they have done in the employee.
It is difficult for even such “bonds” to hold up in courts because
1. The company/employer has to prove (burden of proof is on them) with evidence that the company actually incurred losses because of the employee (it is not enough for a lawyer to stand in court and shout – my client incurred a HUGE loss. The court needs proof), and/or
2. The company/employer has to prove with evidence that they have actually “invested” money in the employee (again, a lawyer standing in court and shouting “My client invested $50,000 in this employee” is not enough. They need proof – bills etc.)
Knowing this fully well, why do company lawyers and HR have their new employees execute such fake “bonds”? It’s plain and simple – cashing on the need and ignorance of the job seeker. As a job seeker, you may be compelled to sign such a bond (because you NEED the job). And once you sign it, you are afraid that they will make your life miserable (because you are not fully aware of your rights as an employee), take you to court, will not let you get employment elsewhere etc. They try to cash in on your “fear” and “need”.
For all you job seekers/employees out there, I have two suggestions, one for those who are currently in this nasty situation (i.e., employees), and one for those who have the potential of landing in such a situation (i.e., job seekers).
1. If you are currently in this situation, take the contract/bond you signed to a labor lawyer. Explain him/her the situation, have them review the “bond” and tell you the validity of the bond and how you can protect yourself
2. If you are currently seeking a job and are asked to sign such a bond, don’t just read it, think that you know English very well and you understand it, and sign it. Legal Language IS NOT ENGLISH. It is completely a different language that resembles English. So, please do yourself a favor, take it to a Labor Lawyer, have them review it, ask questions regarding the validity of the service agreement and how you can protect yourself from it. Do these BEFORE you sign any such bonds.
Hopefully, you will have a more peaceful life.
All the best.
Regards,
-Som G
From United States, Woodinville
Hi Som,
Thanks for providing me your valuable suggestion and feed back. It was nice that you corrected me with the understanding of my bond terms with the information i have provided.
As mentioned by you I can take to court, but will there be any kind of difficulty that arise after taking up to court in terms of getting me another employment opportunity. As what i know taking this to court will not give immmediate relief or no specified dead line, it may prolong for long. It will be a difficult for us to attend the court paying lawyer the fees and all other things without a job. If you have any other thought about how it can be managed, it will be great.
Regards
Sanji
From India, Bangalore
Thanks for providing me your valuable suggestion and feed back. It was nice that you corrected me with the understanding of my bond terms with the information i have provided.
As mentioned by you I can take to court, but will there be any kind of difficulty that arise after taking up to court in terms of getting me another employment opportunity. As what i know taking this to court will not give immmediate relief or no specified dead line, it may prolong for long. It will be a difficult for us to attend the court paying lawyer the fees and all other things without a job. If you have any other thought about how it can be managed, it will be great.
Regards
Sanji
From India, Bangalore
Sanji,
I don’t believe I suggested you to go to court. Rather, my suggestion was to discuss this matter with a lawyer and have your lawyer serve them a legal notice. Serving legal notice is very different from actually taking someone to court (you are just threatening to take them to court – what they are doing to you, you are doing it back to them with the help of your own lawyer).
The legal notice would say something to the effect of
1.Give me my unpaid salary and keep me in employment
2.Give me my unpaid salary and relieve me from the job without any further adverse action
3.Meet me in court and explain to a judge as to why you are doing what you are doing
Now, keep in mind that going to court will be at least as expensive to the company as it would be for you (if not more). I believe that they don’t really want to go to court. If they did, then they would have already gone to court.
So, if you can find a good lawyer, get him/her to write a letter to your current employer, I am willing to believe that they will listen and give you what you deserve. Writing a letter would not cost you much (I don’t think). You may want to contact a lawyer and ask them what their consultation fees is.
Secondly, will this affect your future job prospects with other companies? I don’t really know. If I were your hiring manager, I would not care much, because what the company is doing is unethical and unprofessional. You are standing up for yourself. There may be companies out there that would care (and not want to hire you). But then, India is a big country and there are tons of companies out there. I don’t think this will be a problem.
All the best.
-Som G
From United States, Woodinville
I don’t believe I suggested you to go to court. Rather, my suggestion was to discuss this matter with a lawyer and have your lawyer serve them a legal notice. Serving legal notice is very different from actually taking someone to court (you are just threatening to take them to court – what they are doing to you, you are doing it back to them with the help of your own lawyer).
The legal notice would say something to the effect of
1.Give me my unpaid salary and keep me in employment
2.Give me my unpaid salary and relieve me from the job without any further adverse action
3.Meet me in court and explain to a judge as to why you are doing what you are doing
Now, keep in mind that going to court will be at least as expensive to the company as it would be for you (if not more). I believe that they don’t really want to go to court. If they did, then they would have already gone to court.
So, if you can find a good lawyer, get him/her to write a letter to your current employer, I am willing to believe that they will listen and give you what you deserve. Writing a letter would not cost you much (I don’t think). You may want to contact a lawyer and ask them what their consultation fees is.
Secondly, will this affect your future job prospects with other companies? I don’t really know. If I were your hiring manager, I would not care much, because what the company is doing is unethical and unprofessional. You are standing up for yourself. There may be companies out there that would care (and not want to hire you). But then, India is a big country and there are tons of companies out there. I don’t think this will be a problem.
All the best.
-Som G
From United States, Woodinville
Dear
Suggestion of Som is advisable for the situation.A Contract is binding unless the Employer relieves you of the obligation from the Bond, which no employer will do.Cases in Court are always founded on breach by the employee and clegal action by the Employer.
With Regards
E-mail :
,
From India, Bangalore
Suggestion of Som is advisable for the situation.A Contract is binding unless the Employer relieves you of the obligation from the Bond, which no employer will do.Cases in Court are always founded on breach by the employee and clegal action by the Employer.
With Regards
E-mail :
From India, Bangalore
Hi Som,
Further to the conversation i had with you people on this site, i have few things which i would like to update. As suggested by you i approached the legal advisor and sought his opinion and have issued an legal notice to them. However they didn't respond to that and again my legal advisor has sent one more notice and gave him 1 week of time and they still haven't responded yet. What action do i have to take next in case they are not responding? Will law support my cause on this issue.
Kindly advice.
Regards
Sanji
From India, Bangalore
Further to the conversation i had with you people on this site, i have few things which i would like to update. As suggested by you i approached the legal advisor and sought his opinion and have issued an legal notice to them. However they didn't respond to that and again my legal advisor has sent one more notice and gave him 1 week of time and they still haven't responded yet. What action do i have to take next in case they are not responding? Will law support my cause on this issue.
Kindly advice.
Regards
Sanji
From India, Bangalore
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