• Employment bond

Respected sir,

I have recently joined a bank with a bond of 5 years. However I am quitting my job within 1.5 months due to personal reasons. I was asked to pay an amount of ?59,789 to get my relieving letter. Few facts that underlies my confusion are as follows:

1) The appointment letter given to me consisted of following clause:
"Your appointment will be subject to your executing in favor of bank an undertaking to serve the bank for minimum period of 5 yearsfrom the date of appointment and in the event of your not so serving the bankfor the period of 5 years, you shall be liable to pay to the bank by way of liquidated damages a sum of ?25,000. The cost of the stamp paper for such an undertaking will be borne by bank."
As per the clause bank had to take undertaking from me but no such undertaking was taken on a stamp paper. So am I liable to pay the liquidated damages?

2) Further the bank had taken another undertaking on ?500 stamp paper which stated that if any employee resigns within a year he has to refund 50% of basic salary received before resignation. My basic salary is ?1000. As such I am liable to pay ?500. But I was told that I will have to refund 50% of net salary received. Is it justified?

3) Besides I was told that the terms "Basic pay" and "Basic salary" are different. Is it so?

I am joining a college now and as such there is no point that I can divulge any of bank's details. I need my relieving letter as soon as possible to join the college. So kindly guide me in this regards. Your help will be greatly appreciated.
Asked 2 years ago in Labour from Navi Mumbai, Maharashtra
1) you have not executed any undertaking to serve bank for period of 5 years . hence you cannot be called upon to pay Rs 25000 as per the undertaking 

2)you are liable to refund only 50 per cent of basic salary received by you 

3) Base salary - pay before any commissions, bonus, etc.
Gross salary - total pay before any taxes 
Net salary - take home pay, after taxes 

4) you are not liable to pay 50 per cent of net salary 
Ajay Sethi
Advocate, Mumbai
46639 Answers
2758 Consultations

5.0 on 5.0

1)The bank cannot ask you to pay more than what it has asked you to pay in the undertaking you have signed.  If on the contrary no undertaking was taken the bank cannot ask you to even pay Rs. 25000/.

2) You are bound by what the agreement stipulates and nothing more.  Therefore you are liable to pay only Rs. 500/ which is one half your basic salary. The demand for one half of net salary is not justifiable. The bank cannot interpret clauses to its advantage.

3)Basic pay and basic salary means the same unless one wants to make another interpretation of it. 

4) If you have not resigned and made a formal request for the relieving letter, do so immediately. If the bank is refusing to comply, you will need to issue a legal notice to the bank and take further legal syteps if necessary. 
S J Mathew
Advocate, Mumbai
2263 Answers
110 Consultations

5.0 on 5.0

Basically for joining a college for pursuing the studies you don require relieving letter from employer.

Moreover you cannot get an experience certificate as well for just one and half months service, which is just of training period. 

since you were under the raining period, you may see the clause for resignation/termination during the first six months period which may be termed as training period or probation. 

You have to go through the employment offer letter in this regard.

Basic pay is the the one mentioned in the salary slip, if the bond contains that you may to return 50% of basic pay, it would be from the basic pay amount what has been mentioned in the salary slip. 

The lopsided agreement by the bank in the employment offer letter shall be valid in the eyes of law, hence you demand the relieving letter after tendring your resignation letter properly. let them give their comments in writing after which you may plan  to initiate proper legal action as per law. 

T Kalaiselvan
Advocate, Vellore
36754 Answers
403 Consultations

5.0 on 5.0

1. You gave the undertaking when you signed the appointment letter or accepted the job offer. The consent to the undertaking was symbolic with the signature on the appointment letter or acceptance of job offer in any other manner. 

2. Any clause that had been incorporated in the contract binds you and the employer.

3. Your basic salary is what is shown in the pay slip. 
Ashish Davessar
Advocate, Jaipur
23092 Answers
639 Consultations

5.0 on 5.0

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