Feeling Stuck: How to Handle a Company Delaying Your Security Deposit Refund?

Hi there, I am working at a company and have completed approximately 2 years. During my last appraisal in December 2021, the company started deducting a security deposit of 2000 INR. They mentioned that this would be returned upon completion of one year after the appraisal, which means it should have been given in early January 2023, as a year was completed in December.

However, the company has not credited anything so far. Every time I inquire, they say it will be given after a few days, and then as time passes, they mention it will be given with the salary. Sometimes, they even state it will be given separately from the salary. This situation feels like harassment to me.

Guidance Needed

1. Please guide me on what I should do now. It is very disturbing. One of my colleagues received it upon one-year completion, but not me.

Company Policy on Security Deposit

2. The company states that if someone quits in the middle of the year, let's say with 6 months of deductions, they will not pay back the security even if someone gives them a proper notice period. Please help on this point as well.

Thanks.

Dear member,

What is happening with you is regrettable. The top leadership in a few companies does not understand that promises are meant to be honored. If promises are not fulfilled within a specified time limit, it impacts the motivation of the staff.

Anyway, I recommend you write an application to the head of the company, which is generally the Managing Director (MD). Give it the heading "Refund of the Deposit." In the first paragraph, provide details of your employment. In the second paragraph, write about the security deposit, when the deductions started, when they were completed, and what amount the company owes you.

In the third paragraph, write about the dire need for money. For this, concoct some reason, but make sure that it does not appear too supercilious or fake. State that to fulfill your obligations, you need the money.

After submitting the application, wait for 8-10 days, and if nothing happens, send a reminder and also ask for a personal interview. If still nothing happens, then come back to this forum again. Nevertheless, even if the problem is solved, come back and inform us about what happened. This is because I have seen a good number of ungrateful members who take free advice and then forget the forum. Please don't join their bandwagon.

Thanks,

Dinesh Divekar

Sure, I'll convey an email to the CEO. Previously, I was communicating with him through HR. I'll share the results here.

Hi, As part of a retention strategy, some companies follow the concept of a retention bonus wherein, based on grade eligibility, a fixed amount (apart from salary) is kept on hold and accrues on a monthly basis. Once an employee completes the stipulated timeframe, the amount will be released along with the salary to encourage employees to stay for a longer period.

In your case, Rs. 2000/- was deducted from your salary, which is not legal. You can address this issue with management, as suggested by Mr. Dinesh Divekar, but do so in a polite manner. They cannot withhold money that is a part of your salary for an extended period. Upon resignation, the same amount should be included in the full and final settlement as it is part of your salary entitlement based on your grade.

Opening up a direct conversation with the CEO helped me resolve the issue. Thanks, Dinesh Divekar ji & VM Lakshminayaranan ji for your help.