1. An organization is following the EPF Act of 1925, not the EPF and MF Act of 1952. Can it withhold the employer's share of the Provident Fund on the pretext of non-completion of five years of continuous service to the organization?
2. When an employer advertises for employment and requests an agreement and indemnity bond for a minimum three-year service commitment after training at designated institutes, can they also require the signing of a service bond? If an employee resigns after one year during this three-year period, are they obligated to pay the full bond amount, or should a proportionate reduction be considered for the one year of service provided?
3. If the training specified in the bond is not provided, is the agreement still valid? Additionally, during resignation, is the employee required to fulfill a three-month notice period payment even if it is not outlined in the bond?
4. Can double penalties, such as the full bond amount, be enforced regardless of the actual length of service rendered? Moreover, if nothing is mentioned about the notice period for resignation, can it be added post-resignation along with a double penalty?
Sandipan Hore
From India, Kolkata
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2. When an employer advertises for employment and requests an agreement and indemnity bond for a minimum three-year service commitment after training at designated institutes, can they also require the signing of a service bond? If an employee resigns after one year during this three-year period, are they obligated to pay the full bond amount, or should a proportionate reduction be considered for the one year of service provided?
3. If the training specified in the bond is not provided, is the agreement still valid? Additionally, during resignation, is the employee required to fulfill a three-month notice period payment even if it is not outlined in the bond?
4. Can double penalties, such as the full bond amount, be enforced regardless of the actual length of service rendered? Moreover, if nothing is mentioned about the notice period for resignation, can it be added post-resignation along with a double penalty?
Sandipan Hore
From India, Kolkata
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1. PF has to be covered from day one and no question of five years of service 2. for bond related issues I leave our august members to share their views.
From India, New Delhi
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425From India, New Delhi
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" If the training as designated in the bond is not provided, then is the agreement valid?"
Most companies, when they provide training, seek protection by entering into a bond for reimbursement if certain events take place. You need to clarify whether the training shown in the bond and the actual training were different in nature, institution, or duration of the training.
"Also during resignation, is the employee liable to clear the three-month notice period pay although the same is not enshrined in the bond?"
What does your appointment order speak about the notice period, payment in lieu of notice, etc.? No double penalty can be imposed. Assessed reasonable costs only can be recovered from the employee for breaking the bond.
From India, Pune
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Most companies, when they provide training, seek protection by entering into a bond for reimbursement if certain events take place. You need to clarify whether the training shown in the bond and the actual training were different in nature, institution, or duration of the training.
"Also during resignation, is the employee liable to clear the three-month notice period pay although the same is not enshrined in the bond?"
What does your appointment order speak about the notice period, payment in lieu of notice, etc.? No double penalty can be imposed. Assessed reasonable costs only can be recovered from the employee for breaking the bond.
From India, Pune
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If you are agreeing to register as an apprentice under the Apprenticeship Act, PF is not applicable. Some companies do extend PF coverage to the apprentices as well; it should be welcomed. The agreement/contract along with App-4 is also for one year, which is not terminable simply by resignation. The employer is free to recover the actual training cost as a breach of contract if one leaves during the period of apprenticeship as agreed.
Regds, RDS Yadav Management Adviser and Trainer Director - Future Institute of Management and Technology
From India, Delhi
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Regds, RDS Yadav Management Adviser and Trainer Director - Future Institute of Management and Technology
From India, Delhi
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