Is It Legal for My Former Employer to Demand Notice Pay Recovery Plus Interest After a Year?

I joined a big Indian company almost a year ago. I received half a month's salary. Then, after a few days, I resigned from that company as I was getting a great opportunity. After 10 days, I got approval from the manager. Initially, I considered it as early relief from the manager, but at the time of submitting all the assets, I was informed that there would be a notice pay recovery for 20 days. I received an email from the company for a recovery amount of around 30K (GST included) almost a month later. I didn't reply.

Then, I got a reminder on the same thread a couple of months afterward. Now, after a year, I received a hard letter from them, demanding the full recovery amount plus 18% interest for a year. I wanted to ask, is it legal to ask for recovery money if I only spent one month in the company (including notice days)? If it's legal, do I need to pay the GST plus interest as well?

Notice Period and Legal Obligations During Probation

Please check your offer of appointment for the notice period during the probationary period. If you have accepted the offer or any other document (like a service bond) containing such a term, then you are legally bound to pay the salary for the remaining notice period. Regarding interest, payment of interest follows when there is a delay in remitting the due amount.

It is unlikely that the company will pursue litigation against you to recover the amount as the cost of litigation would be higher. You can offer to pay 20 days' salary to settle the matter. It seems that you were relieved from service without any mention of dues towards the payment of the remaining notice period. This could work in your favor in case of any future litigation.

Check your appointment order first

Check the notice period conditions. As per CGST, employment services are exempted from GST. However, providing cafeteria, recreation, and sports facilities to employees will attract GST.