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.
Gautam ,
ReplyDeleteOn this comment "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."
I beg to differ.
In good and flourishing times - employees ditch the firm - or use existing offer letter to bargain with another firm. Industry has nurtured this behavior. Sizable and big firms can sustain from loosing such employees. But SME face difficulties.
To buffer - they do go for security deposits ,But I agree that this must be done on legal documents.
Much better way is to furnish bank guarantee - where money is safe for both stake-holders till breach of contract. I have worked with this in past and it work wonders.
With Regards
Santosh
i totally disagree santosh sali comment.
ReplyDeleteNo good organization take money as deposit security.If some one really have good work experience with good technology ,why he/she will be join another company with depositing huge security money.those are giving money are mainly freshers and fraud employer take this chance from freshers job hunter.
I'll agree with you on the 'lack of trust' part. It's a two-way street.
ReplyDeleteI've known of similar incidents in Bangalore too. However, they happened in an upswing market. So I'm not sure if the market has any relation to such activities. It could be plain lack of awareness among job seekers coupled with longer terms of unemployment.
Would I take or give security deposits in exchange for work? No way.
@ ppd - please note that both articles Gautam talked about are about Freshers and New recruitment. This is kind of inevitable evil. And my case also stands for the same category.
ReplyDeleteFurther - Though experienced , skilled (!) don't pay probably in local market - they do invest similarly for abroad opportunities . Big Indian firms are also well known to request some bond or monetary liability before sending employees on site.
As commented by "The HR Store" - trust is two way street - unfortunately Indian employer and employee both have missed it out.
regarding security deposits and job switching, I believe prospective employers at times are ready to pay out the bond money if the employee really suits the requirements. And who is to guarantee that the money is not being used by organisation to inversu in business or atleast earn interests from bank deposits. Do the employees who stay their tenure get any dividends on the money depoisted?
ReplyDeleteAsking for security deposit truly send multiple wrong signals right from the first day.
what would u suggest to restrain new recruits from leaving job after training. Its a common problem in smaller companies.
ReplyDelete