Query on Recovery of Notice Period - Deduction of Overseas Allowance

Dear Members,

I recently resigned from my Indian company by serving a 2-month notice instead of the required 3 months as per my appointment letter. I was deputed in Africa 1 year and 1 month ago but joined the company 2 years and 10 months ago. I receive two components of salary during my deputation to Africa:

Indian salary in my Indian account
Overseas allowance in my foreign account

Salary Bifurcation

Overseas Account (African Salary)
Special allowance
House rent
Living expense
Mobile & internet
Local conveyance - petrol
Driver salary

Indian Account (Indian Salary)
Basic salary
PF

The company is now saying they will recover the shortfall by deducting 1 month of basic salary (India) and 1 month of overseas special allowance.

Is it legally permissible for the company to deduct the overseas allowance as part of notice period recovery? The appointment letter mentions the company can recover gross salary in case of a shortfall in the notice period.

Kindly guide.

Thanks in advance.

In this scenario, the legality of deducting the overseas allowance as part of the notice period recovery depends on the specific labor laws and policies in India and any agreements outlined in your employment contract or appointment letter. It is crucial to review the terms and conditions mentioned in your appointment letter regarding notice period recovery and the company's rights in such situations. If the appointment letter clearly states that the company can recover gross salary in case of a notice period shortfall, then the deduction of the overseas allowance may be permissible.

To address this situation effectively, consider the following steps:

1. Review your employment contract and appointment letter to understand the clauses related to notice period recovery and salary deductions.
2. Seek clarification from the HR department or relevant authority within the company regarding the specific reasons for deducting the overseas allowance.
3. If necessary, consult with a legal advisor or labor law expert to ensure that the company's actions align with the applicable laws and regulations.
4. Negotiate with the company if you believe the deduction is unjust or not in accordance with the terms of your employment agreement.
5. Document all communications and agreements reached with the company regarding the notice period recovery and deduction of the overseas allowance to maintain a clear record of the proceedings.

By following these steps and understanding your rights as an employee, you can address the situation regarding the recovery of the notice period and the deduction of the overseas allowance effectively and in compliance with the relevant legal provisions.