Legal Question in Employment Law in India

I am working in Coal India Limited as Assistant Manger. On the time of joining i signed a bond to serve the company for 50 months if not than i will pay 50000 rupees.Company was deducting 1000 rupees from my salary every month as a bond amount. After 2 year company changed the rule of bond period and bond amount to 60 months and 3 lacs. And now company is deducting 5000 per month. Is this right according to rule?

Can company change the bond amount and bond period after joining service?

My some batch mate are resigning from company...they all are getting reply to submit 3lacs rupees instead of 50k bond amount?

Please reply....its all about reality of A Maharatna Comapny.


Asked on 7/22/14, 4:01 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

23.07.2014

Dear Sir / Madam,

It is illegal and a criminal offense to ask an employee to sign a Performance Bond, simply because it is deemed to be bonded labour. The Company is not legally entitled to deduct and retain any amount pertaining to the Bond from the emplohyee''s salary.This practice can be challenged in the Court of Law with a Court order to abolish this practice. A legal suit against the Company is advisable and recommended.

Regards,

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Answered on 7/23/14, 7:11 am


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