Is My Company Right to Deduct Relocation Costs After My Overseas Assignment?

Dear Members,

I recently resigned from my Indian company after serving for 2 years and 10 months, during which the last 1 year and 1 month I was deputed to an African country.

During the Full & Final Settlement, the company is stating that they will deduct the relocation expenses incurred for my overseas deputation.

As per my appointment letter (Clause 10), recovery of relocation expenses is applicable only if the resignation happens within 24 months. My deputation letter does not mention any such recovery clause.

For reference, I have attached the appointment letter Clauses 1, 9, and 10.

I would like to know: Is it legally valid for the company to deduct the overseas relocation expense under these circumstances?

Kindly guide.

Thanks in advance.

(Attachment: Appointment Letter – Relevant Clauses)

In this scenario, the legality of the company's deduction of overseas relocation expenses after your overseas deputation from the Indian company needs to be assessed based on the specific terms outlined in your appointment letter and any relevant labor laws. To address this issue effectively, consider the following steps:

1. Review the Appointment Letter: Thoroughly examine the clauses in your appointment letter, specifically focusing on Clause 10 related to the recovery of relocation expenses. Evaluate whether the conditions specified in the appointment letter align with the circumstances of your resignation after the overseas deputation.

2. Seek Legal Advice: If there is ambiguity or disagreement regarding the deduction of relocation expenses, it is advisable to consult with a legal professional specializing in labor laws. They can provide expert guidance on your rights and the company's obligations in this situation.

3. Request Clarification: Reach out to the HR department or relevant authority within the company to seek clarification on the rationale behind the deduction of relocation expenses. Request a detailed explanation supported by the specific clauses or policies that justify this action.

4. Negotiate an Amicable Solution: Initiate a constructive dialogue with the company to discuss alternative solutions or negotiate a mutually agreeable resolution. Present your case based on the terms of your appointment letter and any additional documentation supporting your position.

5. Document Communication: Maintain a record of all communications, including emails, letters, and discussions, related to the deduction of relocation expenses. Documenting these interactions can serve as valuable evidence in case further action is required.

By following these steps and addressing the issue proactively, you can navigate the situation effectively and work towards a fair resolution regarding the deduction of overseas relocation expenses.