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  • Category: Central Government

    Indemnity bond and the proper channel for it


    Having a query about transfer of indemnity bond? Wondering what is the proper channel to transfer bonds from central to state government? On this page our ISC experts shall respond to your query. b

    I have read in so many posts that we need a proper channel to transfer the indemnity bond from on service to another. What is this proper channel? And can this be transferred from central to state government? To be specific I am asking for railways jobs but what if I want to transfer to some state jobs?
  • Answers

    6 Answers found.
  • Hi there!

    Applying through proper channels means applying through the employer's office i.e. sending an application to the job of your interest via your present organization's intimation, not by you as an individual.

    Here, you only need to fill the application form and attach the necessary documents. The organization where you work will post the application to the concerned office.

    Though it has many disadvantages if you don't share a good relation with your employer, and applying through proper channels is cumbersome too but it has few advantages too. Your job experience, leaves, benefits of the pension scheme and all other benefits of your current job will be transferred to your new job if you get selected. There is also an option of lien (technical resignation) which gives you the benefit to come back to your current job within two years if you are not happy with the newly joined job.

    I think Indemnity bonds can be transferred from Central to State Government. A fresh bond is taken from the person concerned to make sure that he serves the new employer for the balance of the original period.

    Hope it helps.

    Make love to life before it divorces you.

  • When you are in a government job and applying to another government either central or State Government you have to inform them in written and take permission from the competent authority of your organization. In this case you will have to apply your application through proper channel. Proper channel means when you are in one government department and sending your application for job to other department through the administrative department of your current organization. It is always advisable to send an advance copy of the same application to the recruiter to avoid any administrative or postal delay in the process.

    There will be a requirement of signing an indemnity bond. It is used to discourage the candidate to leave job in between the training period. Because, recruiter provide training for a specific and during this period you will get basic pay and DA also. So railways invest an amount on training of new staff. To prevent the loss of recruitment agency an indemnity bond is signed by the candidate. But there are some provisions if any candidate wants to join a job in another department. He can apply through proper channel and his bond of indemnity will be transferred to the other department. Now you will have to complete the remaining bond period.
    Hence you need to apply through proper channel to get the benefit of indemnity bond transfer. Otherwise you will not get that bond transfer benefit.

    If you want to join a private job, then no need to apply through proper channel. In this case you will have to deposit the bond amount to get NOC.

  • Indemnity is that guaranteeing to the loss occurred to the party because of the actions of the other party. When we take an advance for work from a party we should give them an indemnity bond so that he can claim the losses if we are not able to execute the work in the way they asked us to do and within the time frame.

    When you join a government job it is your duty to apply for another job through proper channel. This will be helpful to both the parties. When you have to send the application for the new post you should send it through proper channel so that the new employer will know that you are working in such and such place and the old employer will also know that you are trying for a move.

    In government jobs when you sign an indemnity bond, the conditions will be specified in the bond, regarding applying for a new job, notice period and the modalities you have to follow for application. When you apply for a job you have to send the application through the employer and they have to send the new employer all the details asked for by the new employer.

    This indemnity bond may have minimum time to be worked or not or may not. The conditions will change from one job to the other job.

    drrao
    always confident

  • In case, you are interested to have a job while still you are on the job of some organisation, you will have to follow the rout of proper channel where in your application would move from the different authorities of your department and finally it move to Finance and Personnel departments in order to ascertain any due to be recovered from you and your service rendered in this department.
    Finally there will be your exit after submitting your due amount and with the cocrrence of the personnel department.
    Indemnity bond differs to the bond as indicated in the earlier one. Here you need to fill up the application and furnish the relevant papers by attaching such papers along with such application. It will be the responsibility of the organisation to send the same to the new organisation where you are interested for joining. This bond would reflect all your privileges such as your current emoluments, your present DA and Basic, your status of Pension etc. This would be sent to your new employer once you are selected in the new assignment. Such a transfer would allow you to come - back within a certain period of time. In all the cases, you need to follow the conditions as laid down in the Indemnity - bond.

  • The question has two operative parts:

    1. Applying through proper channel.
    If the current and prospective(new) employer are gvernment/public sector it is either explicit or implicit that the applicant should forward the new application through 'proper channel' or furnish an NOC from the current employer. Generally the announcement or prospectus say clearly that the application should be forwarded through proper channel. If so it is compulsory thatthe application should be submitted through proper channel.

    Proper channel means through the current employer. When the appication for new job is forwarded through proper channel, then if seelcted the employee can demandrelief and will not be subjected to any disciplinary action for not informing about new job. However sometimes the current employermay write some comments on the forwarded application likeif the person is under some service bond or financial bond etc. Proper channel also takes some time amd may have to pass through various layers of authority also. Usually an employer does not create any objectons and forward the application as such and imply that the employee has to resign as per laid down procedure. However sometimes the current employermay write some comments on the forwarded application likeif the person is under some service bond or financial bond etc.

    2. Indemnity Bond
    Indemnity bond is a written document with prescribed fees stamp(sometimes notarised also) which says that the signatory will'indemnify' or compensate for any loss arising out of his actions violating the contract conditions. The compensation may be finacila like say the salary for remainig periods of contract, amount plus interest plus traiing charges etc. That is puresl as per the bond clauses. So when a contract is violated,thenthe signatory has to satisfy the bond clause. Then only the employe will get the properrelief and no-due,no-liabilit and NOC ;etter.

    Indemnity bond can be generally transferred only if the beneficiary is same inthe current and new situations., and the service conditions and bond clauses in the new job also is same. In that case the servic in the earlier job should be taken into consideration in the nee employment. This is very rare. Otherwise(and generally)the earlier bond has to be satisfied and a new bond,if necessary, with new employer signed afresh.

  • Indemnity bond is a type of surety for the employer that you do to leave the job for which employer has recruited you and trained you. In case you leave the job then you will have to execute the bond as per the bond contract conditions like depositing a mentioned amount in the organisation before leaving. As regards the transfer of indemnity bond is concerned it is only allowed in similar set up for example if in Railways you switch from one position to other the same bond can continue or if the amount of indemnity is changed due to the new job being higher level than the earlier one then also a new indemnity bond might has to be executed between you and the employer. Due to functional and procedural differences the indemnity bond from central Govt may not be transferred and continued in the state Govt set up. So a new bond is to be executed.

    Another important thing in this respect is that all the above adjustments of indemnity bond are possible only when you have applied for the new post through proper channel. It means that you have submitted your application in your existing department and they will forward it to your new would be employer. Of course you can send the advance application in the meanwhile to avoid the delay of through proper channel copy to reach them. You have to mention that it is an advance copy and through proper channel copy will be reaching them soon. This part of the process is very important as it makes the things transparent and when you are selected in the new post the existing department will easily issue you the NOC after settling the indemnity bond issue. NOC is a document which vouches for your work in the existing department and in a way affirms your experience in the present job. It is a very important document for the people who often switch their jobs. NOC also tells the next employer that there is no dues on this person in the earlier department and it indirectly speaks about the good conduct of the employee so far. Many people do a mistake of ignoring NOC due to procedural hassles but it should not be neglected as it makes your career record in a smooth way.

    In private organisations things are a bit different as they do not transfer the bonds from one company to other and you have to settle the score there itself before leaving the department. The concept of NOC is also not rigid there as sometimes people do not want to tell the existing company that they are leaving for a greener pasture. Only thing in such an environment is you have to discharge the terms and conditions of your employment. For example if there is an agreement that there will be a 3 months notice period before leaving or deposit the 3 months salary in lieu of that then that legal binding is to be followed. If you do not follow then you will have problems in settling in getting your dues from the company and other things related to your PF fund etc.

    Knowledge is power.


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