Can My Employer Deduct Relocation and Notice Period Costs Without Informing Me?

I joined a company in Noida in August 2016. Now, I realized that the role is not as per my expectations, and I have resigned and am serving the notice period. They paid me notice period recovery and relocation amount from Hyderabad to Noida.

Now that I have resigned, they are recovering these amounts from my F&F. However, before joining and at the time of payment, no one informed me verbally or in writing that if I left before 6 months, this amount would be recovered. They also do not have any policy for this. I asked them about this, but they are stating that the recovery of notice period amount is an industry practice, and they will recover it from my F&F. The recovery of the relocation amount is based on the Transfer Policy, which is for permanent employees, and there is no mention of this for new joiners like me.

They are withholding my November 2016 salary to recover all these amounts from my F&F and the November salary. I would like to know if an employer can recover this without informing the employee and if they can hold salary. Can I approach a labor officer regarding this recovery?

Regards, Mukesh Kumar

Recovering notice period amounts and relocation expenses from an employee's Full and Final (F&F) settlement without prior communication or a clear policy can be a contentious issue. In this situation, it's important to understand the legal aspects and rights as an employee in India.

Legal Considerations:

- The recovery of notice period and relocation amounts should ideally be governed by a written agreement or policy to ensure transparency.
- According to the Payment of Wages Act, deductions from an employee's salary can only be made under specific circumstances like statutory deductions or deductions authorized by the employee.
- Employers must adhere to the terms agreed upon during the employment contract and should not make unilateral deductions without proper communication.

Practical Steps:

1. [Icon] Review Employment Documents: Check your employment contract, offer letter, and any policies provided by the company to understand if there are any clauses related to the recovery of amounts in case of early termination.

2. [Icon] Seek Clarification: Request a formal explanation from the HR or management regarding the recovery of amounts from your F&F without prior intimation or a clear policy.

3. [Icon] Document Communication: Maintain records of all communication, including emails, letters, or verbal discussions related to the recovery of amounts to support your case.

4. [Icon] Legal Consultation: If the company persists in deducting amounts without a valid basis, consider seeking advice from a labor lawyer or approaching the labor department for guidance on your rights and options.

5. [Icon] Dispute Resolution: If informal discussions do not yield a satisfactory resolution, you may explore formal grievance procedures within the company or legal avenues to address the issue.

It's essential to protect your rights as an employee and ensure that any deductions from your F&F settlement are in line with legal requirements and the terms of your employment agreement.