Provision and Methodology for transfer of Service Agreement Bond

Hello Readers,
It is the follow up of prvious article in which Ayush Srivastava did a comparative analysis of his working experience at IOCL and subsequestly at railways. In this article he explains provision and methodology for transfer of Service Agreement Bond while switching from a PSU to Indian Railways through ESE. He can be reached at  Ayush Srivastava.


Hello Folks!!!

This is Ayush Srivastava, IRSE Probationer, 2013-exam batch. I find pleasure in introducing myself, briefly as follows:

Graduation: B Tech (Civil) from Maulana Azad National Institute of Technology, Bhopal.

Graduating year: 2013           Graduating GGPA: 9.41/10.00            PG: None

GATE-2013 AIR: 84                Engineering Services Exam-2013 AIR: 23

Campus Selection: IOCL          GATE Recruitment: IOCL

I have decided to talk about the transfer of bond, specifically from IOCL to railways, as I was involved with the same two organizations and since it is more of a legal kind of thing, I cannot and will not misguide you by writing anything and everything here in a generalized manner. I am sorry if this doesn’t concern you.
First of all, please be aware that there is a Department of Public Enterprise (DPE) guideline referred as DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004 which clearly states that “The bond executed by employees of the Public Enterprises, who have received scientific/technical training at the cost of Public Enterprises and have applied through proper channel during the currency of the bond join Central Govt./State Govt. services or take up employment under quasi-government organizations or any other public enterprise either on the basis of competition examinations/tests/interviews organized by those organizations or the Union Public Service Commission should not be enforced subject to the condition that a fresh bond is taken to ensure that the employee serves the new employer for the balance of the original bond period.” The above guideline can be checked hereunder: http://www.dpe.nic.in/important_links/dpe_guidelines/personnel_policies/glch2dindex/glch02d31 .

You should apply through proper channel for ESE (which you would) and intimate in prior, to your controlling authority at your current job in the concerned PSU, while applying for the ESE (at the beginning while filling up the form and not wait till you clear the written exam). Many times, the HR personnel in the PSUs take it as leverage for not transferring your bond, in case you have not intimated through proper channel while applying for the ESE.

An important point to understand here is that in case you are a fresh pass-out and have applied and appeared in the written exam of ESE prior to joining, then off-course applying through so called proper channel doesn’t apply, as you were not a part of your current PSU, while you applied and wrote for the exam. However, it is suggested to intimate in writing, to your boss, that you have applied and written the ESE of the concerned year, which was held prior to your date of joining your current job. This should be done as soon as you join at your first permanent place of posting.

As stated in the above DPE guideline, you need to execute a fresh bond with your current organization for the balance of original period and amount. This bond shall clearly state that you shall serve the department allotted to you through ESE (in our case Railways) for the balance of the original period. In the event of failure to do so on your part, your new department shall realize the proportionate money of the balance bond amount, from you and return to the PSU, with whom you have originally executed the bond. The new department (in my case the railways) shall be custodian of this bond.

Problems Faced:

  1. No official format of fresh bond available, either with IOCL or Railways, which can be used directly.
  2. Convincing the HR personnel of IOCL regarding such a provision of bond transfer. (Though it was not an issue as IOCL has some very good and helpful HR people).
  3. The mechanism of paper work to facilitate the transfer of bond.

 

The above process of bond transfer was challenge for me, and sometimes I thought of giving up. However, fortunately, I came out with flying colors and was the first ex-iocian of ESE-2013 batch (including all services in railways) to get my bond transferred successfully from IOCL to Indian Railways.

First of all, since there is no official format of fresh bond available, either with IOCL or Railways, which can be used directly, you will have to prepare a format on your own and get it verified from HR people in IOCL, well in advance.( If IOCL is OK with the format, then railways have no problem). To prepare the format you may take help form NTPC guys, who have a format of their own, as far as I know. You should pressurize the HR department of your PSU (IOCL in this case) to provide this agreement format. However, at last, if you have to prepare it yourself, you may take the help of a professional lawyer to prepare such a format, or search the internet, if you are lucky. It is quite possible, that seeing the rising number of requests for bond transfer every year, PSUs including IOCL, by now, might have officially prepared such formats for transfer of service bonds from their organization to some other state/central department and you may get saved from this mind-wrecking task.

Regarding having a strong stand for enabling your bond transfer, you should let your HR know about the DPE guidelines, so that you are not denied of your right. As far as railways is concerned, I know and so can say that it is always a plus point, because it is clearly written in the appointment letter, that the railways accept the transfer of bond from PSUs/Central  departments. You should submit a Xerox of your railway appointment letter with your resignation letter to IOCL, in which it should be clearly stated that you want your bond to be transferred as per the relevant DPE guideline.

Once a fresh agreement has been typed on the bond paper, it should be duly signed by you and your surety and then countersigned by the competent personnel in IOCL or accompanied by a letter from IOCL stating the said bond is accepted by them. This letter along with the original bond paper shall be submitted at IRICEN, Pune at the time of joining. The railways shall keep the original bond paper, and send a copy of the same, to IOCL, with a covering letter stating the acceptance of the bond on the part of railways. This marks the completion of the bond transfer process.

P.S.: As per prevailing culture, you will be given a provisional release order from IOCL, on the basis of which you can join the railways. (Without provisional release order you will not be allowed to join).  Once the bond process is completed, IOCL shall dispatch your formal release order to railways, under intimation to you.

I think that’s all of what I am capable of sharing with you. Study hard, study smart and always be clear with your priorities. A life full of dilemmas is like having a bowl full of butter chicken in front of you when you know you can’t eat it because of an upset digestion.

Wishing you all a happy reading and a successful life ahead!!!!!!!

AYUSH SRIVASTAVA

IRSE (P), 2013.

6 Replies to “Provision and Methodology for transfer of Service Agreement Bond”

  1. Thank you sir for providing detailed description, I have one query though : Is there any requirement that one should join IES within certain time after resigning from PSU ? eg. whether the bond transfer will not take place if one leaves PSU (last working day) 3-4 months before joining date of IES ?

  2. Hi Sir, To get the bond transferred is there any condition limiting the time gap between the last working day in PSU and the joining date in ESE ? e.g. if my last working day in PSU is October 15 can I join ESE on December 15, and get my bond transferred ? Please reply.

  3. sir,
    i am currently working with state psu (maharashtra). i would like to know if i can transfer the bond between state psu to central govt….

  4. Sir,I am currently working in NHPC,and cleared the written exam of my state government.I had applied through proper channel before the examination but unfortunately after filling the online application. The ED of the company is not giving approval for NOC stating that I should have applied before filling the form.Is there any rule like that. Please reply

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