Is It Fair for HR to Demand a Salary Refund When Notice Period Wasn't Clearly Defined?

My spouse joined a Big 4 consulting firm as a fixed-term hire, wasn't confirmed, and was asked to resign in March 2022, with the last date being May 2022. It was remote work from home. There was no notice period in the contract; however, she was active, had active billings and access, and was paid two months' salary until she reported an escalation to initiate separation and employment formalities. No one was concerned about termination/disconnection. As she was offboarded from the project and had no task assignment in May, the technology team asked her to stop connecting to the network. Her Full and Final (FNF) settlement was further delayed due to various mishaps and loose ends at their end. Now, they are asking for almost two months of salary paid as Loss of Pay (LOP) for the notice period days.

Is it genuine for HR to ask for a refund?

Is it genuine for HR to ask for a refund when the notice period itself was not clearly informed, and salary was debited for the two months until the last working day? What if we don't repay the credited salary and forego the fixed-term experience in future jobs? Is an employee legally bound to a legal case if the employer didn't follow their process? Who can we escalate and report this process non-compliance to? Due to the delay in FNF settlement and experience letter, she missed job offers due to her ex-employer's mismanagement. [Location]: Gurgaon, India

Tags: City-India-Gurgaon, Country-India, notice period, consulting firm, experience letter

In the situation described, it is essential to address several key points to navigate the issue effectively. Here are the steps you can consider:

🗍 Review Employment Contract: Check the employment contract thoroughly to understand the terms related to notice period, termination, and any other relevant clauses.

🗍 Reach Out to HR: Initiate a conversation with the HR department to seek clarification on why the refund is being requested despite the lack of a clear notice period in the contract.

🗍 Document Everything: Keep detailed records of all communications, including emails, letters, and any other relevant documentation related to the termination process and refund request.

🗍 Consult Legal Assistance: If the situation escalates and you believe your spouse's rights are being compromised, consider seeking legal advice from a labor lawyer familiar with Indian labor laws.

🗍 Escalation: If the issue remains unresolved, you can escalate the matter to higher authorities within the organization, such as senior HR management or the legal department.

🗍 Future Employment Consideration: Evaluate the potential impact of not repaying the salary on your spouse's future job prospects and discuss the implications with a career counselor or mentor.

By following these steps, you can address the situation with clarity and ensure that your spouse's rights are protected during this challenging period.