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I recently resigned from an MNC, where i served for 12 years. In my resignation letter, I had mentioned that I am leaving due to personal reasons and requested for early release.

Management and HR agreed and asked me to serve for 45 days for handover, instead of 90 Day notice period (confirmed by email). I completed all handover activities during my reduced notice period.

I was relieved with waiver of 45 days' notice period and the Final settlement and release letter was signed off by HR, Managment and with no payout / deductions for short fall in notice period mentioned. In fact, considering my long service, the even agreed to pay accumulated leave.

Later when I joined a new company (their competitor), my ex-employer HR came back and asking me to sign a revised final settlement and release letter with pay-out for shortfall (45 days), claiming I had misled them with waiver request for medical reasons. - as I have made no such request, either in writing or my verbal discussion, I refused to accept revised settlement letter.

Later after 3 weeks, my ex-employer unilaterally, decided to deduct 45 days salary (~ 5 lakh) from my Gratuity payment and made the final settlement.

After repeated follow up, asking for break-up of deduction made, I received an email from HR stating they had deducted the money in order comply with Company / HR policy.

I request the forum member/s to advise me on the further course of action, including my legal rights on this matter.

From India

Do you have any copy of the mail communication for reducing the notice period with out any buy back?

As per the Payment of Gratuity Act employer shall not deduct/adjust Gratuity amount. The same shall be forfeited only in termination case due to the mis conduct. You can send formal mail mentioning with appropriate clauses in Act to the HR & if no response can escalate stating as will raise compliant with appropriate authorities

From India, Bangalore

Without any specific Court Order Gratuity can not be attached or any deduction can be made and it is illegal.

Please approach to controlling authority under PG Act for recovery.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531

From India, New Delhi
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