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Author Topic: Service Agreement  (Read 642 times)

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Offline sudhaktanj

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Service Agreement
« on: May 10, 2016, 08:04:22 AM »
Hi All,
I have joined a service based company in chennai on Jan 2016 . At that time the HR told I need to serve minimum period of 2 yrs bt didn't sign any bond @ that time . Now They have come up with service agreement stating that:
  1. I need to serve Company for 3 yrs (1 yr training period + 2 yr serving period ) .
  2. If I quit before 3 yrs I need to pay 5,00,000 ( training cost) .
  3.Every month they will deduce 2000 from my salary for 3 yrs and they will return it if I successfully completed 3 yrs service period , If I quit in middle they won't refund the 2000 rs they deducted every month.
 Whether I have rights to oppose in signing the aggrement ?
  after 4 months of joining suddenly they came up with this aggrement .
 How I can defend in employee point of view??


Thanks in advance.


Offline riteshmaity

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Re: Service Agreement
« Reply #1 on: May 10, 2016, 09:53:17 AM »
Since you did not sign to such agreement at the time of joining your service, now you cannot be forced to accept any new terms and conditions without your consent.

Hence, you can legally deny accepting such agreement/ bond.

Please note that whether such bond/ agreement, if accepted, is valid in law is another debatable issue.
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Offline sudhaktanj

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Re: Service Agreement
« Reply #2 on: May 10, 2016, 09:21:10 PM »
Hi Ritesh,
 What if my employer tells I need to sign this bond to continue my service in that company.

Offline advjaibansal

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Re: Service Agreement
« Reply #3 on: May 10, 2016, 11:05:46 PM »
Dear Sir,

You may refuse to sign the said agreement and try to negotiate that at the time of taking the job the period was two years and you are ready to sign for two years from the date of joining. IF you refuse to sign the agreement, they may also terminate your services. Please consider everything before taking any steps.

this is become a normal practice nowadays in private sector companies. In some places the time is one year or two years or three years, it differs from company to company as they spend huge amount on your training and upliftments.

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jai bansal
Advocate, New Delhi
Supreme Court of India
bansal.jai@gmail.com
mobile: 09868566649

Offline rajgopal sripathi

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Re: Service Agreement
« Reply #4 on: May 11, 2016, 08:09:23 AM »
Hi
Technically, an employer cannot force a new contract (service agreement).
only the terms of your employment/ appointment letter will be binding between you and your employer.

Service agreement etc are totally illegal and contrary to law.(the reason is that employer is withholding Rs2000 from your salary and willing to pay you the same after you complete 3 years with the company which is technically interest free money which the IT company is retaining as deposit). You can challenge these agreements in labour court.

please note that chennai labour court has decreed that IT industry comes under Industrial disputes act and need to follow Industrial disputes act in all labour related matters.
 

however since many of the IT organisations offer "At-Will" employment terms, if you do not sign the service agreement, your employer might ask you to leave on your own accord.
in my view, if you think you have good career prospects with the company you can continue in your employment. if you think you do not have good career prospects, suggest do not sign the service agreement and find a new employment.
Rajgopal Sripathi
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Offline riteshmaity

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Re: Service Agreement
« Reply #5 on: May 11, 2016, 08:13:56 AM »
Hi Ritesh,
 What if my employer tells I need to sign this bond to continue my service in that company.

If you do not sign the bond, they might terminate your service. However, such termination will be highly illegal in the eye of law. But in order to fight against the employer, you have to be mentally as well as financially strong.

Right now the situation is not matured enough to advice legal remedies. Once any party takes a step, then only remedies can be advised from legal point of view.
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Offline Kapil_Singh

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Re: Service Agreement
« Reply #6 on: May 23, 2016, 12:55:27 AM »
Hello Sir/Madam,
Please provide me the information on following matter I described here under:
This is in regards to my employment with one of Gurgaon based IT Company DCM Data Systems Ltd.
Please take your time to read it completely to get the clear picture what I really want to ask, its like a long boring story but I tried to write it in very short.
__________________________________________________________________________________
Letís start with my quick professional Introduction.
My Name is kapil singh, staying in Indirapuram Ghaziabad. Iím having 4.6 years of total Experience in Linux Server Administraion. Linux is my core skill. My current skill level is L2 and Iím hired by DCM Data Systems Ltd  to work on L2 cum L3 level at IBM client site.
__________________________________________________________________________________
I joined this company in May 2015 as a specialist, it was under a hire and trained program. I was hired to work with IBM, on the payroll of DCM Data Systems Ltd. Hence all the mail communication and hiring process was done with the name of IBM.
But here DCM shows some clevery and asked me to sign 2 years long bond with company (without disclosing IBM in offer letter)  by saying that its our clientís (IBM) requirement to sign the bond. I simpally signed the bond without even thinking that what could be the worse results it may produce.
DCM started giving me training (2 months long training) starting from May 2015. In the meantime I had gone through the mid term assessment and final assessment organized by IBM at B-19, IBM India Pvt. Ltd., sec-62, Noida. I cleared both assessment and now itís the time to on boarding at IBM.
Here is the game beginsÖ..
Due to some certain reasons DCM couldnít make my on boarding possible with IBM and that is where I entraped in fight between DCM and IBM.
DCM make me sit on its bench from july 2015 and it kept continue till Jan 2016
For a employee having 4 years of IT experience, its very hard to sit on bench. I was sitting idle for 7 months without doing anything. I was loosing my skills and my career with DCM seems going into dark. There is no career left with DCM. The days were passed by, thinkg that very soon I will be deputed to IBM.
One day DCM came up with a surprise that we are gonna depute you to one of our client MotherDairy. On this site there is no work related to my profile (Linux) and the lavel as well. One have to perform only monitoring related tasks which can even a L0 or L1 level of engineer can perform.
I protest againt my deputation to MotherDairy by saying that Iím hired to work with IBM only so how can you deputed to any other client. And more than this, there is no work related/matched to my profile and level. I will loose my skills while working there. But they forced me out to go and joined at motherDairy. I denied with my full potential but in the end they told me that you have signed bond with us and we can depute wherever we want to.
Tell me one thing if I signed a bond then does that mean you will treat with me like your slave and do whatever you want to with me..??
They threaten me by saying that company can take any legal action againt you if you will deny to join MotherDairy because you are in bond with us.
Hence they forcefully deputed me at MotherDairy, and from Jan 18, 2016 onwards Iím working here.
Every day passed by, Iím feeling mentally harassed while working here. I feels my career is spoiling due to this hell company DCM. A person whome supposed to work as a L2 cum L3 level is now doing L0 kind of tasks just because of this bond.
So please help me out and show me the right way.They are spoiling my career as its been more than 1 year I didnít perform my profileís related work. Iím loosing my skills day by day.
__________________________________________________________________________________
Here are the questions on which I need the answers, please help me out.
Q1:- How could I get rid out of this bond..??
Q2:- What could be the higher leagal action DCM can take against me if I stopped working here..??
Q3:-  Which actions I may take if they keep doing my mentally harassment..??


waiting for your valuable response over this.

Thanks
Kapil Singh
Mob - 9555213189

 

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