Jun 8, 2009

IT firms dupe employees

Abhishek Rungta an IT entrepreneur tweeted me these two disturbing stories that took place in Kolkata.

The first one says :

An unlicensed software company that had been operating out of Bengal’s IT hub for three years without the authorities noticing is being investigated for cheating campus recruits of their security deposits and salaries.
Trainees of INFOGEN Global filed an FIR with Bidhannagar East police station on Tuesday against “chief visionary” Anirban Ghosh and his management team for criminal breach of trust and fraud. The company, which has four offices in Salt Lake, had recruited them as software developers last year for an annual pay package of Rs 84,000 each but hasn’t paid them a rupee so far.

The other says :

Over 700 employees and 228 trainees of Assurgent Technology Solutions Pvt. Ltd have complained that they were recruited through campus placements, made to pay Rs 1 lakh as security deposit, but then denied their dues.
The tech firm set up in 2005, dealing with software development, sales management and KPO, is now shut and its managers are absconding.
Officers of Bidhannagar East police station contacted their counterparts in Durgapur, where similar complaints had been registered against the branch office of Assurgent Technology. Sreejan Chatterjee, the branch in-charge of the Durgapur office, was arrested late on Thursday.

As Abhishek says, incidents like these are hitting the level of trust between employee and employer in the IT industry in India.

So what can you do?

If as an employee you are asked to furnish a security deposit at your firm, be sure that the firm is recognized. Does it have a certification/documentation. What about a legal team? Is the security deposit guarantee signed on legal documents?

I personally am against firms taking any kind of 'security deposits'. I think they are a stupid and short sighted measure. They denote a lack of trust.

However, with the bleak economic scenario I guess employees are prepared to accept terms and conditions without questioning - and that is something we should guard against.