• Service bond transfer

Sir

I am working with Regional rural bank (RRB) currently, as Manger Scale 2 signed a bond of 2 yrs in which 1 year is pending, Due to Family circumstances looking forward to shift to my hometown Filled he RRB scale 2 exam again n qualified it, Now preparing for interview..
If i got selected in my hometown RRB i will look to switch to that bank and under service policy matter DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004 gives me power to switch and transfer of bond also....
But if i see previous cases my bank has never allowed the transfer of service bond and compelled employees to pay the service bond amount + additional training charges also...

I dont have strong financial background so cant pay the amount which will be ranging from 2.5 to 3 lacs 


Please advice me what should i do
Asked 7 years ago in Labour

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8 Answers

Dear Sir.

According to the rules and regulation .......the probation period period is very much important ......in the service period....The service policy is govern by the service Act .....central and state .......if you leave your job ..then most possible....department will terminate you......and recover ..all the amount by your side...............its not a excuse in service act........prepration of different exam......or appearing in interview..............department always follow the strict rules.......

Best Regards

Mob-No-[deleted]

Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

Don't worry, service bond is meant to ensure stability in service and not to enslave the employee to prejudicially affect their careers under the garb of service bond.

Free trade, commerce and service is fundamental rights of a citizen which can't be trampled with by service bond.

So join the new employment anyway. If the bank imposes penalty you can always challenge the same in writ jurisdiction of high court.

Don't worry and all the best for your career.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

As I advised earlier you can challenge the decision of the bank if it refuses to free you in high court under writ jurisdiction of high court.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

there is a DPE Guideline which lays down that in case if an employee is shifting from a PSU to PSU or government the service bond should be transferred to the new employer.

2) you have applied for job in another PSU after obtaining NOC from your employer then you should not face problems

3) if your employer refuses and insists on payment of bond amount then you have to move court against your employer as it is refusing to follow guidelines laid down by govt

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

1as per guidelines of 2004 your release will be subject to the condition that the new organization take from him a fresh bond binding him to serve them for the balance of the original bond period; in case he fails to serve the new department/organization etc. or leaves it before completion of the original bond period for a job where exemption from bond obligation is not available, the proportionate bond money should be realised from the individual and refunded to the first organization with whom he originally executed the bond.

2) bank is bound by guidelines and cannot insist you pay service bond amount to be released from service

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

The bond executed by employees of the Public Enterprises, who have received scientific/technical training at the cost of Public Enterprises and have applied through proper channel during the currency of the bond join Central Govt./State Govt. services or take up employment under quasi-government organizations or any other public enterprise either on the basis of competition examinations/tests/interviews organized by those organizations or the Union Public Service Commission should not be enforced subject to the condition that a fresh bond is taken to ensure that the employee serves the new employer for the balance of the original bond period.

To ensure that the requirement of obtaining a fresh bond from a person, where necessary, is fulfilled, the enterprise with whom the employee has executed the original bond may at the time of forwarding his application write to the organization etc. under whom the employee intends to take up another appointment intimating them about the bond obligation of the individual and clarifying that in the case of his selection for the new post, his release will be subject to the condition that the new organization take from him a fresh bond binding him to serve them for the balance of the original bond period; in case he fails to serve the new department/organization etc. or leaves it before completion of the original bond period for a job where exemption from bond obligation is not available, the proportionate bond money should be realised from the individual and refunded to the first organization with whom he originally executed the bond.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

I agree but Bank has given me NOC in regards with the Interview, so it doesn't arises any matter of termination as every thing is done with well inform manner to the management. But concern comes withe service bond that bond is transferable but previous employees has been rejected. and doesn't provide the relieving certificate until the amount asked is been paid them and without that i can't join new PSU bank..

The provision of law is very clear that you can avail this opportunity.

Do not worry of the previous employes, you should confine to your requirement alone and exhaust the remedies available within the organisation.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

1. Ordinarily the banks do not allow switch over of the bond. It is at the discretion of the bank. NOC for interview does not imply that you will be allowed NOC to shift the bond.

2. Instead of getting entangled in the legal process you should make optimum use of your persuasion skills to get the bond transferred. A legal battle will be expensive and long drawn.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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