Recovery of incremented salary if any employee leaves organisation with in a period of one year - CiteHR
Umakanthan53
Labour Law & Hr Consultant

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An employer given salary hike to all itís employees uniformly based on the salary benchmarking and similar industry practice for retention of employees, then by a common office circular put a condition that if any employee leaves organisation with in a period of one year from the date of salary revision the difference incremented amount will be recovered from Full & final settlement of the concern employee.
Whether it is legal to recover the salary once paid to employee by giving the reference of the circular. In this case no formal agreement was executed between employee and employer or in other word employee has not given any acknowledgment on the condition / circular. Please share your input.

Whether the unconditional revision of existing salary is based on salary bench marking or any other thing, it becomes the part and parcel of the contract of employment either express or implied. In my opinion, therefore, subsequently the employer can not introduce any condition with retrospective effect.
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