How is the bond money calculated in a PSU
20-Oct-2023 (In Labour & Service Law)
I am employed in a PSU and have signed a bond of Rs. 3 Lakhs. I came to know that PSU declares the bond amount as per the expenditure it incurs for the training of employee. My company have not provided any training. If i leave the PSU, am i still bound to pay the bond ???
This query can be answered only after reading the terms and conditions of bond.How ever generally the bond money is fixed and interest is leviable from the date of demand.The exact terms and conditions mentioned in the bond will decide the decrease or enhancement in the amount.
Dear Querist, whether you are in private employment or working with a PSU, the employer must clearly state reasonable epxenses (if any) spent towards your training. If no amounts have been incurred by the company for your training, the company is not entitled to recover the same. If the company has taken a cheque along with a bond, you will need to file an application under section 145(2) of the NI Act, in the event a cheque bounce case is filed against you. The above defence would have to be taken in court. Please feel free to get in touch if you require any further clarifications. Best Regards, Dhruv Banerji.
The law laid down by several courts including the Supreme Court of India, is very clear that agreements do not pass the test of law. Since training has not been provided, you are not liable to pay the amount, however, the documents have to be seen first to advise appropriately. Given the fact that is a PSU, you will have to fight for your rights.
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