THE ECONOMIC TIMES 26/03
MUMBAI: Some former junior employees of Rolta India suddenly find themselves in a jam. Eighty five employees, whose services were terminated or
who ‘resigned’, are left with the burden of a bank loan. This loan was taken at the company’s behest to pay the enrolment fee for an in-house training programme.
Rolta India says that the services of 50 employees were terminated for non-performance while 35 employees resigned rather than having their services terminated. Some of the aggrieved former employees told ET that about 150 of them were without a job and struggling to repay the loan of Rs 2.5 lakh.
As part of its recruitment policy, Rolta India trains all new recruits for three months at Rolta Academy, a division within the company. Each recruit has to pay a ‘non-recourse security deposit’ of Rs 2.5 lakh. Rolta has a strategic arrangement with Union Bank of India to make the amount available as an educational loan.
The Rolta website says “selected candidates will be given an offer letter, which will be valid for a period of 15 days within which they can organise the deposit from the bank with the help of the company”. The bank disburses the loan directly to Rolta India by way of a pay order/demand draft.
Rolta would pay the interest on the loan, which also forms part of the employee’s monthly salary, and pay the principal amount to the bank in two instalments of Rs 1.25 lakh each, one after 39 months and the second, 12 months later. If the employee resigns during this period, the company is absolved from paying the loan.
Former employees, who spoke to ET on condition of anonymity, allege the company created conditions due to which they were forced to resign and there was no prior warning. Some were given as little as 10-14 days to leave the company after being employed for almost close to a year.
Many of these employees approached Union Bank with a request to reschedule the EMI.
In response to an email query by ET, senior officials of Rolta said, “the amount in question is not a fee, but a ‘refundable deposit’, to discourage the employee from using the academy as a training ground to merely increase his market value. On the contrary, he/she receives full salary and does not have to worry about repaying the loan and interest, if he/she intends to fulfil the employment obligations.”
However, the loan agreement with the bank stipulates that whenever a student/employee resigns from Rolta, the entire loan amount will become payable immediately and the bank will have the liberty to take appropriate recovery measures to recover the loan.
The agreement also categorically absolves the company from paying or remitting the monthly interest or further repayments to the bank. Significantly, the loan given at an annual 12.25%, attracts an additional interest of 2% over and above the stipulated interest rate in the event of a delay or default in payment. An e-mail sent to the bank remained unanswered till the time of going to press.
Interestingly, most frontline IT companies do not levy any fees for the inhouse training, but many companies do insist on a bond.
0 comments