Can an employer take an undated cheque from an employee at the time of appointment? I joined a company in 2009. The company has taken an undated cheque for three months' salary from me. In 2012, I resigned, but they didn't allow me to serve the notice period and deposited my cheque in the bank, which bounced due to insufficient funds. Now, the company has filed a legal case against me.
Please guide me on whether I should give them the notice period salary amount or fight the case.
From India, Delhi
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1Please guide me on whether I should give them the notice period salary amount or fight the case.
From India, Delhi
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please answer the following questions
Is there any rule/ T&C of employment you found written in your employment letter that you must provide “Undated Cheque/Blank Cheque” to employer while at the joining?
Did you get any copy of notice from your employer in this regards?
Did you get any copy of Legal notice that they have filed against you?
What was the reason of your resignation or breach of employment?
Why you were not allowed to serve Notice Period if you were ready and
what was the amount of the cheque?
Your query is lacking with many of things and the answers of above posted questions can enable us to give your appropriate response …
From India, Gurgaon
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Is there any rule/ T&C of employment you found written in your employment letter that you must provide “Undated Cheque/Blank Cheque” to employer while at the joining?
Did you get any copy of notice from your employer in this regards?
Did you get any copy of Legal notice that they have filed against you?
What was the reason of your resignation or breach of employment?
Why you were not allowed to serve Notice Period if you were ready and
what was the amount of the cheque?
Your query is lacking with many of things and the answers of above posted questions can enable us to give your appropriate response …
From India, Gurgaon
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Name the Organization so that other dont fall prey to them in future
From India, Mumbai
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From India, Mumbai
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Dear,
Further to the citation by Anil ji, here are a couple more points which I'd like to emphasize:
The company does not have the right to coerce any candidate or employee to provide a post-dated cheque. Therefore, it should be a term clearly stated in the organization's policies, which should be read and understood.
(Check your appointment letter for any such clause)
- Were you pressured to provide an undated check?
- Were you aware that providing a cheque could lead to legal issues?
- If not, why did you provide it in the first place?
This statement seems mysterious. If you resigned, informed your employer, and they still did not allow you to serve the notice period, then:
- How did you leave? Did you abscond?
- Do you have any correspondence (like a letter or email) as proof of your resignation?
I hope we are not operating in the dark. Therefore, it is important to gather enough data to provide you with expert advice. Thank you!
From India, Visakhapatnam
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Further to the citation by Anil ji, here are a couple more points which I'd like to emphasize:
The company does not have the right to coerce any candidate or employee to provide a post-dated cheque. Therefore, it should be a term clearly stated in the organization's policies, which should be read and understood.
(Check your appointment letter for any such clause)
- Were you pressured to provide an undated check?
- Were you aware that providing a cheque could lead to legal issues?
- If not, why did you provide it in the first place?
This statement seems mysterious. If you resigned, informed your employer, and they still did not allow you to serve the notice period, then:
- How did you leave? Did you abscond?
- Do you have any correspondence (like a letter or email) as proof of your resignation?
I hope we are not operating in the dark. Therefore, it is important to gather enough data to provide you with expert advice. Thank you!
From India, Visakhapatnam
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Hello Aarush Bhatt,
Further to what Anil Arora and Sharmila Das have mentioned, please also clarify if the PDC was taken in lieu of any bond period. If yes, what was the period? You mentioned you joined in 2009 and quit in 2012 -- please confirm/clarify the months too.
Additionally, since you resigned, please confirm if you received the relieving/experience letter(s). Or was it that the company deposited the PDC straightaway?
All the best.
Regards,
TS
From India, Hyderabad
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Further to what Anil Arora and Sharmila Das have mentioned, please also clarify if the PDC was taken in lieu of any bond period. If yes, what was the period? You mentioned you joined in 2009 and quit in 2012 -- please confirm/clarify the months too.
Additionally, since you resigned, please confirm if you received the relieving/experience letter(s). Or was it that the company deposited the PDC straightaway?
All the best.
Regards,
TS
From India, Hyderabad
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Dear All,
Such practices show that the employer is not confident. In any case, the employee need not worry about the employer filing a case against the employee for cheque bouncing simply because there is no consideration for the cheque. Such transactions are void in law.
Another point is that for the current period, from 1st April, the format of the cheque is changing. All cheques are numbered. The number can show when the cheque was issued, and it will be stale after 3 months. Such a cheque cannot be enforced for recovery.
I wonder if this really happens. Can an employer take a bond but ask for an advanced cheque for 3 years in advance?
Vibhakar Ramtirthkar.
From India, Pune
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Such practices show that the employer is not confident. In any case, the employee need not worry about the employer filing a case against the employee for cheque bouncing simply because there is no consideration for the cheque. Such transactions are void in law.
Another point is that for the current period, from 1st April, the format of the cheque is changing. All cheques are numbered. The number can show when the cheque was issued, and it will be stale after 3 months. Such a cheque cannot be enforced for recovery.
I wonder if this really happens. Can an employer take a bond but ask for an advanced cheque for 3 years in advance?
Vibhakar Ramtirthkar.
From India, Pune
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Moral of the story?
If you are forced to give undated cheques, the first thing to do is go to your bank and issue stop payment orders against it... pure and simple. Then, if the company does bank the cheques, it will not be considered a criminal offence. The date of stop payment will also show how old the cheques are, which will help in case they do file a case.
From India, Mumbai
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If you are forced to give undated cheques, the first thing to do is go to your bank and issue stop payment orders against it... pure and simple. Then, if the company does bank the cheques, it will not be considered a criminal offence. The date of stop payment will also show how old the cheques are, which will help in case they do file a case.
From India, Mumbai
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The company held my appointment letter and asked me to give an undated cheque (three months' salary). They gave my appointment letter only after submitting an undated cheque to them. This cheque was taken from me as security. The company is located in Okhla Ph-2, New Delhi, and deals in mobile payment services. I request all viewers not to give any cheques to employers. In my case, I am still fighting with the employer for the last 3 years in Delhi court. The employer had deposited my cheque without prior informing me, which later bounced. The employer had filed a case against me. I am suffering even though I have no legal liability due to the company. Can someone from the same company come forward to help me in this regard? My number is 9716944990.
From India, Delhi
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From India, Delhi
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Enforcement of negative covenants in employment terms.pdf