Is My Former Employer Right to Reclaim Notice Pay in My Final Settlement? Seeking Advice

I joined an NBFC from a bank in July 2012. The NBFC wanted me to join by July, as a result of which I paid Rs 1.08 Lakhs for the short notice period recovery from my pocket, which was confirmed by the NBFC that they would pay me this amount upon joining. After joining the NBFC, I repeatedly reminded them about the payment. After 5 months, they agreed to pay me the notice recovery amount but only paid me 50% of it, which was Rs 50,000. I resigned from the NBFC's services in February 2013 and have just received the Full and Final (FNF) settlement working. To my surprise, they have claimed the Rs 50,000 they paid me as a notice buyout, to be repaid to them for the FNF settlement.

Please advise whether this is correct or not. I believe they cannot claim this amount, but I would like to hear from senior members here.

You may check your appointment order. There could be a similar clause, most probably "If you resign from services within 'x' years, the notice period buyout pay shall be recovered at the time of full and final settlement." If the deduction is as per the appointment order/amendment in the appointment order, you just need to follow the clause. In this case, statutory legislation has no business.

[QUOTE=consultme;2061308] Hi Mayank, You may check your appointment order. There could be a similar clause, most probably "If you resign from services within 'x' years, the notice period buyout pay shall be recovered at the time of full and final settlement." If the deduction is as per the appointment order/amendment in the appointment order, you just need to follow the clause. In this case, statutory legislation has no business. Thanks for your reply. I do not recall any such clause in my appointment letter. How can I rebut the company's claim for the same in the most professional manner? I need to reply to their email which claims this amount to be paid back. Thanks again.