Leaving Before a Year: How Can I Get My Security Deposit Back from My Employer?

I have been working at a company for over 2 years. After a year, they introduced a system for deducting a security deposit, which has to be given after a year from when it begins.

I received one when I completed one year after the deduction started (but not easily, at that time CiteHR's community helped me get that).

After that, I stayed at the company for 6 months and then resigned with a longer notice period than agreed to avoid any arguments that I did not serve well.

However, HR is now saying that I will not be receiving the security deposit money as I am leaving before a year since the deduction started.

So, once again, I need CiteHR's help to resolve this issue.

Please advise on what steps I should take next.

Hi, it is not very clear what you mean by security deposit.

Retention Bonus vs. Security Deposit

Are you referring to a Retention Bonus, which is normally as per grade entitlement apart from salary? If a part of your salary is deducted as a security deposit and is not paid back based on your resignation before completing the second year, then it is not ethical and against the law. You can fight for your money as it is your salary.

However, if it is a Retention Bonus that is outside of your salary, then it is at the discretion of the employer, and you cannot claim it as a matter of right.

When my salary is below ₹20,000, they don't take any deductions. When it exceeds that amount, they say they will deduct ₹2,000 each month, which will be given at the year-end.

In my agreement, they wrote my salary as ₹30,000. They are deducting from that amount, so what I receive is ₹27,800 (₹200 is just service tax, which you can ignore).

Can this be considered a Retention Bonus?

Please let me know more about it.

There's no mention of a bonus in the agreement. They only mentioned on a call that this amount will be deducted. They only mentioned that this will be given after a year. But there is no mention that if I leave before a year, they will not give it.

Hi, I hope they gave you monthly payslips and that you are keeping them. You can make a request in writing and ask for a written statement that they may not be able to provide. If they deny your request, inform them that you don't have any other option except to approach the Labour office for justice.

However, keep in mind that this situation may have an impact during future background verification, and they might not issue a proper relieving letter. Just a word of caution.

They are not giving any payslips, but yes, I have a bank statement. Will it work?

"You can make a request in writing and ask for a written statement that they will not be able to give you."

Pardon me, I didn't get your point. Could you please elaborate more?

Background Verification Concerns

For BGV, I've done nothing wrong during my tenure, and I did my job with full dedication until the last day. I helped the company sustain its projects which were not stable. Can they lie about me in the BGV? If yes, I think it can be tackled legally, as they will be giving misinformation to harm (if it happens). Your thoughts?

Relieving Letter Issues

And if they block the relieving letter due to this, can it be challenged legally?

Hi, I meant to ask if you could request your employer to provide written confirmation that they will not be able to release the amount deducted from your salary. Understood? Background verification comments are at the employer's discretion.

I asked my employer to provide me in writing why he is not paying me the deducted amount, but he has not provided it.

I would like to lodge a complaint with the Labor Office. Please let me know how I can file a complaint there. A sample of the complaint letter would be greatly appreciated.

If you suggest sending a legal notice, please assist me and provide me with the format. Thanks.

Hi, you can make a formal complaint with the labor office. There is no standard template. Just share the exact details with the name and address of the employer, your joining date, and a narration of the discussion with the employer. You may submit the letter in your local language also.

Some people say that if my salary is above 21-24k, the Labour Office or court will not assist a person whose salary exceeds that limit. Please let me know if this claim is true or not.

Hi, if you were employed in a managerial/supervisor cadre, then you cannot approach the Labour Court.