Corporate Bondage

Are you enslaved??

Team B12
Abhineet Louis
Debaprasanna Puhan
Medha Chaturvedi
Rachit Bajpai
Sulagna Panigrahi
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Clause - 1
Overseas assignment
Reimburse all expenditure
-designation
-number of days spent overseas
-type of country

Producing money for the company and repaying the expenditure from
own pocket in doing so for the same.
Incomeless effort

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Clause - 2

Employee sent overseas for training

Trade secret

Time-to-Productivity

Payback 2*salary+allowances@12% interest (more than twice ROI)

Forced labour

Damages have been arbitrarily set by the company without any prior notice

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Clause - 3
Employee sent to overseas for Project or Business tour
Payback CTC+(project start-end) @ 12% interest at the time of separation
More no of days an employee works for the project and leaves the higher the
remuneration company gets back from him
Helped the company gain profit without being paid in return
Forced labour

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Clause - 4
Should not be forced to comply with this as the expected
completion date of the project has not been revealed
Veiled attempt at legalizing the companys high handed tactics to
discourage employees
Overseas Project office the record keeper for M/s XYZ
Coercion and undue influence

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Clause - 5
Additional financial penalty on the employee depending on their
whims and fancies under non-project cost to further harass the
employee.
Employee confirms his will to payback the compensation for the
inconvenience/loss caused to the project
Making a better investment on the employees.

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Clause - 6
Violates freedom of employment
Proprietary rights over the training and the employee
Likeliness of utilization

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Clause - 7
Would be free once he satisfies the above clauses
Bombay High Court - force an employee - against the public interest.

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Reasonable compensation with justification

Work experience 18 Years, Designation Sr. Manager

Overseas duration 8 months (Aug,2009-May,2009)
Bond Period 2.5 Yrs. ( till Dec, 2012) approx.
Total working months = 8 i.e. 90 days + 5 months = 12 L + 5(4 L)
=32 L+ 12% interest for 8 months (clause 3)
=32 L+2.5 L (clause 1 & 3)
=34.5 L , amount till May,2009

Total bond value till Dec,2012

= 34.5 L for 2.5 Yrs. @ 12% CI
= 45 L approx.
Payback 40-45 L is justified.

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Compensation of Liquidated damages

M/s XYZs demand for damages (overseas)
(assignment) Payback of all overseas expenditures
(training): 2*salary+allowances@12% interest
(project & tour): CTC + allowances project start-end@ 12% interest
at the time of separation.
Violation of Minimum Wages Act 1936
Section 73 & 74 - Indian Contract Act - principle of compensation breach of a contract.
Employer seems to be extravagant and unreasonable
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Cont.
M/s XYZs demand for damages (overseas)
Clause 1 compensation has been stipulated rather too generously
Clause 3 is in direct violation of Article 23 which prohibits forced
labor.
Clause 5 adds any absurd amount as non-project compensation
Clause 6 prohibits - joining a rival firm for an indefinite period - right
to equal opportunity- Article 19.

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Suggestions of remedy
There is a dilution in the HR policies
Second addendum burden - exploiting employees
The employee can appeal to the court of law with the following points
of contention:
He is liable to seek protection under Article23(1) (freedom of job &
forced labor)
Article 27 of Indian Contract Act.
Employee to take the help of NHRC

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