Dear friend,
I am also of the opinion that deduction of certain percentage from salary and keeping aside towards bonus to be paid after 3-4 years of service, is not right. As conveyed by M/s Rajan Associates, only certain deductions are permissible under the law and we cannot do so as per your current practice.
No organization wants people to quit. There are different retaining strategy being followed by different organizations. But those strageties must be in accordance with the law.
Please see attached a policy that we developed for retaining employees in our organization. Probably you may think on these lines too. You can fine-tune the same to suit your organization.
V. Balaji
I am also of the opinion that deduction of certain percentage from salary and keeping aside towards bonus to be paid after 3-4 years of service, is not right. As conveyed by M/s Rajan Associates, only certain deductions are permissible under the law and we cannot do so as per your current practice.
No organization wants people to quit. There are different retaining strategy being followed by different organizations. But those strageties must be in accordance with the law.
Please see attached a policy that we developed for retaining employees in our organization. Probably you may think on these lines too. You can fine-tune the same to suit your organization.
V. Balaji
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