• Indemnity to be paid while leaving job

I am an employee of a public sector bank. While joining i had to sign a bond that if I leave or propose to leave before the completion of 2 years of service I am liable to pay 2 lakhs. I had completed 2 years of service in May 2016. After that due to medical reasons I had to go on leave. Finally I was on leave without pay from August 2016. I was supposed to be confirmed in may 2016 itself. However due to administrative delay the confirmation of my batch mates happened later in the year. They refused to confirm me because I was on LWP (although it started after the stipulated 2 years). Anyway now I want to leave the job. They are demanding that 2 lakhs+s.tax citing that I am not confirmed. However the bond I signed during joining only had the 2 years clause, not confirmation. Am I legally required to pay it or can I be spared?
Asked 6 years ago in Labour

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10 Answers

Hello,

No you are not legally required to pay the said amount, if the said amount is being asked from you against the terms of the employment. If however, they serve you with some notice of recovery then you can also move to the High Court challenging the same.

This advise is being given to you on the limited facts presented by you in the question.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

1. The demand of bank is unwarranted.

2. Since you have completed 2 years of service they cannot ask for any penal amount.

3. So join and company of your choice now and ignore their demand.

4.they can not seek legal remedy to get this amount from you.

Relax and concentrate in your new job.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1) you are not liable to pay Rs 2 lakhs

2) you have worked for 2 years hence bank cannot call upon you to pay bond money

3) confirmation is immaterial

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

If you were not confirmed then your service is extended, by virtue of which the original contract came to be extended, hence you are governed by the original contract on the extension of your service. So ordinarily, you are liable to pay the amount. However, all depends on the language of the contract. So consult a lawyer with a copy of the contract to get an unambiguous opinion.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

No, you were legally bound to complete 2 years of employment with them. It is immaterial whether or not they confirmed you within the said duration. It was them who had to confirm and it's their fault if they failed to do the needful within the requisite period. Approach the High Court to seek appropriate relief.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

1.The Bank is illegally putting pressure on you to continue to save their administrative cost for recruiting your replacement.

2. Moreover, your leaving the bank will add to the attrition rate of the said bank which they do not want.

3. Send a legal notice to the Bank for giving you the release letter with in 15 days of the day of your resignation after two years of joining without claiming any bond amount as per your employment contract.

4. If they fail or neglects to issue you the said release letter, file a Writ Petition against the Bank before the High Court praying for a direction upon the Bank to issue the said release letter with in 7 more days.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

You send your resignation letter by registered post

Let them give a reply mentioning the amount, you can challenge the validity of the claim first by issuing a legal notice and then you can fight them in court of law as per the provisions of law and the conditions of employment

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

make payment under protest and get release order and join central govt service

then take legal proceedings to recover your Rs 2 lakhs paid by you

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

If you've already tendered them a written request asking them to redress your grievance, you could directly approach the High Court against the Bank. Alternatively, if you are in a position to pay, you can pay to them, in which case you'll be relieved without any fuss.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

1. This is the only problem you will face being that the Bank will refuse to issue you the release order for which you won't be able to join the new employer.

2. Legal notice will not fetch the release order for you.

3. If you were on paid leave then you should be considered as completed the bond period of two years and if not then you have not worked for two years.

4. In the given circumstances, it will be prudent on your part to pay off the amount and get the release order to join the Central Govt. service and thereafter, claim back the said amount and if the Bank refuses, you should file a damage suit against the bank praying for refund of the said amount with interest, damage and cost.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

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