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Dear All, My company gave an increment to the employee but he didnít accept, still the company credited an incremented salary to his account for 2 months. The employee got another offer served his notice and left. On his full and final settlement company deducted a 2-month increment difference by giving the reason it was by mistake.
Can that kind of mistake happen for 2 months, can they do this? As per labour law can a company do like that - will it be acceptable?

From India, Bengaluru

No, this is unfair for the company to deduct the increment amount already paid to an employee consequent to resignation. The increment is given based on past performance. This act cannot be justified. It is also made clear an employee does not have a choice to accept or reject the increment given. If the increment is denied it can be challenged. The employer owes an explanation as to why the increment was denied.
Recovery from salary can be made in case of excess payment. In this case, the increment was due and was given. Most probably, had the employee continued in service, it would have also remained in salary. To recover the increment paid is bad HR practice, unethical and improper.

From India, Mumbai
Agarwal BD

Annual increment is given for performance during the previous year and is not a matter of negotiation so there is no question of non-acceptance of increment. I have known of some organizations deliberately delaying their declaration of increments by a few months so that they do not have to pay those who change jobs in the beginning of the new financial year, which is also ethically not correct. But it is grossly unethical of the organization to recover the increment amount already paid.
From India, Kolkata


Did the employee signed the increment letter ? If so normally nowadays employer add a clause stating that incase of resignation within _ months from the effective date of resignation Company reserves the right to revoke the increment amount ... So please check whether any increment letter with such clause is signed by that employee.

From India, Madras
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