The court held that the coersion via blank cheques invalidates employment contracts, stressing the statutory right to a service certificate and the necessity of standing orders for companies with 50 or more employees.

ORDER :

Nagesh Bheemapaka, J.

Petitioner No.1 claims to have joined the 4th respondent - Private Company on 24.01.2022 and subsequently, resigned on 06.02.2024 with last working day as 20.02.2024. Despite multiple follow-ups via e mail, she was not issued Relieving Letter i.e. Experience Certificate by the company which is violative of fundamental right under Article 19 (1) (g) of the Constitution. Hence, a representation was filed with the office of the respondents. It is stated, she promised to produce the same to the present employer in 90 days as the companies usually take some time to finish the formalities of an employee leaving and issuing the final "full settlement" to the employees. The 4th respondent had also not cleared the rightful wages at Rs.5,80,000/- due to her.

1.2. The case of petitioner No.2 is that he joined in the position of ‘Management Trainee-Growth’ in the 4^th respondent company on 06.07.2023 and as demanded, he signed an employment bond of two years, however, the Company through their Human Resources (HR) personnel abruptly in January 2024 required them to sign and handover signed blank cheque leafs as security to the Employment Bond signed, for which, petitioner did not agree; therefore, on 19.06.2024, he was terminated from the job, without any other reason and without any notice or payment of one month salary in lieu of notice.

1.3. Petitioner No. 3’s case is that he joined in Respondent No.4 company as ‘Management Trainee-Sales’ on 06.07.2023 and signed employment bond of two years by the Company and subsequently, the Company through their Human Resources (HR) personnel abruptly in January 2024 required them to sign and handover signed blank cheque leaves as security to the Employment Bond signed. As he did not agree, on 19.06.2024, he was terminated from the job, without any other reason shown and without any notice or payment of one month salary in lieu of notice.

1.4. According to petitioners, respondent No.4 did not issue appointment letters as per Rule 30 of Telangana Shops & Establishment Rules 1990 read with 1988 Act; they have not created Standing Orders, showing how the working hours, overtime payment, termination, weekly off, etc. are managed and it is nothing but violation of Sections 3 , 4 and 5 read with 13 of the Central Industrial Employment (Standing Orders) Act, 1946. It is stated, making employees sign minimum duration Employment Bond, is in violation of Article 23 of Constitution and also violation of Section 5 read with 16 of the Central Bonded Labour System (abolition) Act, 1976.

1.5. Petitioners state that though employees of the same company have already reported to the State, but as no action has been taken, they filed Writ Petition No. 14490 of 2024 in which representation was directed to be disposed of in two weeks. The said order was not complied with by the officers of the State, hence, Contempt Case No. 1523 of 2024 was also filed. The callousness of the State in implementing the provisions of the 1988 Act, 1946 Act, 1976 Act, is affecting millions of employees in private firms, while the State shows all possible hints of being aware of the violations and yet, willfully demonstrating indifference towards the helpless employees in the State, laments petitioners. It is argued that the State for namesake issued notices and kept quiet without imposing penalty on Respondent No.4 for violating the provisions of the law

2. In the counter filed by the 3rd respondent, it is stated that issuance of Certificate of Servi