Dear All,

One of the employees who joined a week ago wants to resign now. He is bound by a 2-year contract which he signed on the joining date by agreeing to the terms and conditions. We have called him for a meeting to discuss his reasons:

1. He is not interested in working due to the bond.
2. He is not interested in working on Saturdays.
3. He is seeking a higher salary.

Regarding the first two points, we had already communicated with him before his joining. As for the third point, we are willing to accommodate his request by offering an additional monthly charge of (12K).

However, he is still not expressing readiness to continue. Please suggest how to proceed with this situation. Additionally, it is important to note that we waited for him to join for 90 days.

Regards,
Vasavi

From India, Bangalore
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Every decision will involve a risk, and that principle applies both to you as an employer and him as an employee. After waiting for 90 days, you have inducted him, but suppose that if you find that he is not performing well, and his attitude is very bad, and you finally realize that he will not add any value to the organization. What will you do? You will ask him to leave. At that time, you will just forget about the bond, which should be one-sided (as always), right?

In a similar way, the employee should have resigned from his organization, stayed there for 90 days, and joined you by agreeing to remain with you for two years. After joining, only he found that your attitude is not positive and the work culture is not as expected. He should also have the option of leaving you.

Legally, you cannot enforce the bond. So far, you have not provided him with any training as well. If he decides to leave, you cannot take any legal action against him. The right to work with an employer one likes is a fundamental right. He can say that this is not the employer he expected. The decision to join you was wrong. Therefore, considering that the decision to offer employment to this employee and the decision to wait for this employee for 90 days were wrong, you should allow him to leave. There will be a business loss, which should be treated as one of the many losses that you may face in business.

From India, Kannur
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  • Ommygautam
    agree
    1 0

  • Thank you for your response. That means employees only have all the rights to do anything according to their wish. Employers should keep quiet. How can this be right, sir? If so, tomorrow someone else will come and try to do the same. Still, we should be the same.

    Regards,
    Vasavi

    From India, Bangalore
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    Yes, the employee only has rights under labor laws. The employer can certainly refuse to give employment. If he is ready to offer employment, he should understand that it is not just to provide employment that he is doing business, but beyond that, he would get a return on investment. If he can do the work himself, let the employer do it. Who said that he should employ a worker? If employed, he should follow the law of the land.
    From India, Kannur
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    This is completely unfair to the employer. Yes, it's correct that an employer pays a salary for the skills used. It's a mutual agreement. If an employee is not performing well, we will not terminate immediately. Instead, we will see if any training and development methods help improve performance. If the performance does not improve even after this, we will inform the employee three months prior to any action. This is how every organization follows procedures.

    However, when it comes to employees, this is not happening.

    From India, Bangalore
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    You can insist on the notice period requirements as per the contract of employment. However, this is restricted to human resources who do not hold any supervisory or managerial powers and responsibilities. Enforcing a bond to make an employee work for you for two years is akin to bonded labor, which is impermissible. If there are quantifiable costs related to training and skill development, you can recover that amount if the employee leaves after acquiring skills from you. The cost must be specific and quantifiable.

    An employer holds a higher position when offering employment to an employee. The employee, in turn, gains leverage when confident that their skills are valuable to the employer. This often leads to negotiations for a suitable fee or remuneration. The dynamics of supply and demand in the labor market play a significant role; in an inelastic market, employees have more bargaining power, while in an elastic market, employers have more options. Failure to recognize employees as valuable assets can lead to discontent and potential unionization.

    In my experience spanning over three decades, I have dealt with both highly skilled and unskilled individuals from both inelastic and elastic labor markets. It is crucial to view employees as assets; otherwise, their trust may be lost. The IT industry faces fewer issues not because employees are unable to voice concerns but due to the presence of strong employer associations. Incidents of harassment in major multinational corporations often come to light only when extreme measures are taken.

    From India, Kannur
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    Dear Vasu,

    You are complaining about how employers have no rights and everything is with the employee. Have you checked how many cases there are of employers terminating employees without reason (or for non-business reasons) or just out of spite? Or how many cases there are of recruitment that happened even with companies like Infosys where the joining date is not given for a whole year?

    You have a bond and want him to honor it (which is an illegal bond in India). But are you willing to honor it? Are you willing to continue employing him for 2 years even if he contributes nothing or if the particular job/function/client is eliminated?

    I am pretty sure you will be getting rid of him without a second thought. So, no, your contention that the employee has all the rights is definitely erroneous.

    From India, Mumbai
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  • AU
    Aussiejohn
    Excellent summary of the situation
    0 0

  • Ask the employee to leave by paying the damage in lieu of bond and notice amount.You call the employee for the discussions to settle the matter by paying the amount or else terminate him.
    From India, Mumbai
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    Prabhat, You want the employee to pay for an illegal bond?
    From India, Mumbai
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    Legal or illegal is a subject before the court. The employee who wants to quit has to abide by the terms of employment. The employee should challenge the bond on the grounds of violation of the employee's freedom or creating bonded labor at the cost of the bond. Why did one accept the offer or sign the bond and buy out the terms from the employer is a matter of question? Employment starts only after one accepts the terms and conditions, and no one is compelled to do so or subjected to any force; rather, it is their own decision.
    From India, Mumbai
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