Yes withholding your certificate is a crime on the ground that there is no agreement to this effect, if all the promises were oral you may go ahead and file a complaint in the police station.
Regards
Dear Sir, I joined a microfinance company this year in may. Due to adverse working conditions, I decided to quit two days back. During joining, the company had made us submit our original documents and made us sign on their offer letter (not on bond/stamp paper) which stated that they'll need 3 lakhs or above if we leave within one year. the conditions at company were so pathetic, that it was impossible to continue, so I decided to leave. Now they are asking money to return certificates. What is the validity of their demand, provided they did not make us sign on any bond paper. Also, withholding certificates is a crime, isn't it?
Yes withholding your certificate is a crime on the ground that there is no agreement to this effect, if all the promises were oral you may go ahead and file a complaint in the police station.
Regards
Send them a legal notice to forthwith return your docs.
Any such bond is having no validity in the eyes of law because, there could be no valid Agreement in restraint of trade and profession.
In any case, the said condition cannot be enforced if you were not imparted any skill or training by the co., in which the company incurred an expense of RS. 3 lacs.
Off course this is a Crime. Lodge a FIR.
File police complaint under section 406 of IPC for criminal breach of trust if company fails to return your original certificate
2) company can sue you to recover Rs 3 lakhs but company had to prove that they spent money on your training
1. Any contractual obligation does not have to be on stamp paper. Even something written on a plain paper would result in a binding contract between two parties.
2. The contractual obligation mandated you to pay 3 lakhs to the company if you leave within a year.
3. However, the company does not have a lien on the certificates, consequently it cannot withhold those. You may file a civil suit for mandatory injunction against the company in the civil court to direct it to return the certificates.
4. Nothing stops the company from filing a civil suit for recovery of 3 lakhs.
At the time of interview/making the recruiter may ask to show the originals to verify. The employer can ask for notarised/self attested copies or at the most to show the originals. Obviously they have not given the acknowledgment/receipt of originals to you and neither they have given any letter stating the reason for collecting originals from you.You can send letter/notice to return the originals to you.
While one can appreciate anxiety for job, desperation and blindly yielding to the demand of unscrupulous employers (this reference is restricted to quite a few employers who resort to this unethical practice). Issue a legal notice or resignation and demanding return of original certificates within a month and citing that you never executed the bond as a pre-condition of employment, contrary to law and your personal rights. If you don't get response, lodge a complaint with the labor commissioner with your correspondence.
If they have given you an acknowledgment , you are well with in your rights to demand these to be returned to you at once in excellent condition, by hand in the office.If these are soiled,mutilated,spoiled,damaged,torn,you are well within your rights to turn the heat on them. There is no reason that they hold on to these for indefinite period, without informing you, the logic to you.
Confiscation of certificates amounts to forcing you to serve till they do so. It is violation of Bonded Labor act and employers are criminally liable.
What if I don't want to pay them any money as I have worked very hard in these months (sometimes upto 16 hrs a day) and I do not want to return my hard earned money to them?
Company has to file suit to recover Rs 3 lakhs
In your defence take the plea that company did not spend any money on your training and you are not liable to pay Rs 3 lakhs claimed
You can make your stand clear on this count and refuse to pay them.
Let them initiate legal action for recovery which can be challenged properly.