Umakanthan53
Labour Law & Hr Consultant
Nagarkar Vinayak L
Hr And Employee Relations Consultant
Rocky Dcruze
Mnc Employee

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Hi Can a MNC company in India deduct Money from the Employee salary in the Name of retention Bonus and give it back after 3 years even if that mentioned in the Offer Letter. Is that legal in India?
Dear Rockey,
"Retention Bonus" is a payment by the employer outside the regular salary paid to any key employee for ensuring his stay in the organization for a certain period during the phase of any crucial business cycle or any project yet to be completed. Therefore, I am at a loss to understand such an unheard practice of a retention bonus to be recovered in advance installments from the current salary of the employees to be paid after three years later. It would be better that you upload a copy of the offer letter in this regard for the perusal of the members.

Dear Colleague,
As rightly said , we need to see the relevant clause in the Offer/Appt letter.
The Retention Bonus in this concern is future payment, payable only after completion of three years' service. The deduction of any amount towards payment yet not made is badly conceived and perhaps goes contrary to the very purpose.
What would have been approprate is to put condition that
if the concerned employee leaves before completing three years. service, he will not be entitled to receive the Retention Bonus.
Regards,
Vinayak Nagarkar
HR- Consultant

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co