My friend, who works in a private company, has the following case:
1. The employee joined the organization and left within 2 months. (Her notice period was for 2 months.)
2. The employee was provided with a resignation acceptance letter on her last working day.
3. The employee was asked to leave the company within 2 weeks after her resignation and was relieved from all her duties.
4. The employee received a no-dues certificate from various departments, including accounts, which stated there is no advance recoverable from her.
Recovery During Full and Final Settlement
Now, can the employer, during the full and final settlement, request a recovery from the employee in terms of:
- Recovery of bonus paid
- Recovery of notice period balance
Best Regards,
Karthika
From India, Madras
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1. The employee joined the organization and left within 2 months. (Her notice period was for 2 months.)
2. The employee was provided with a resignation acceptance letter on her last working day.
3. The employee was asked to leave the company within 2 weeks after her resignation and was relieved from all her duties.
4. The employee received a no-dues certificate from various departments, including accounts, which stated there is no advance recoverable from her.
Recovery During Full and Final Settlement
Now, can the employer, during the full and final settlement, request a recovery from the employee in terms of:
- Recovery of bonus paid
- Recovery of notice period balance
Best Regards,
Karthika
From India, Madras
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Bonus Recovery Under the Payment of Bonus Act
1. Bonus paid under the Payment of Bonus Act cannot be recovered on such grounds.
Notice Period Fulfillment
2. If the employee has fulfilled the notice period clause (2 months) mentioned in her employment letter, then there is no question of recovery.
Regards,
Kamal
From India, Pune
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1771. Bonus paid under the Payment of Bonus Act cannot be recovered on such grounds.
Notice Period Fulfillment
2. If the employee has fulfilled the notice period clause (2 months) mentioned in her employment letter, then there is no question of recovery.
Regards,
Kamal
From India, Pune
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Dear Sivaram,
Bonus Recovery
1. The bonus would have been paid on a pro-rata basis, so it cannot be recovered.
Notice Period Recovery
2. Since the employee joined 2 months ago when she submitted her resignation, she was required to serve a 2-month notice period. If she has not completed it, the employer will recover the remaining days of the notice period.
Thank you.
From India, Mumbai
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Bonus Recovery
1. The bonus would have been paid on a pro-rata basis, so it cannot be recovered.
Notice Period Recovery
2. Since the employee joined 2 months ago when she submitted her resignation, she was required to serve a 2-month notice period. If she has not completed it, the employer will recover the remaining days of the notice period.
Thank you.
From India, Mumbai
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Thank you for your reply. I would like to inquire about the following situation:
Upon not serving the two-month notice period, the employee raised this issue with the senior HR manager, stating that he is willing to serve his full notice period (via email). The HR manager confirmed that the release is being processed in accordance with the organization's exit procedures. The reporting manager has signed a letter to the HR department indicating that the employee can be released on a specific day. The employee possesses a scanned copy of the letter.
In a scenario where the organization releases the employee before the end of the notice period, is the employee still obligated to pay the notice period buy-out? If not, does the employee have the option to rejoin the organization to complete the notice period, and can she request to do so?
Thank you.
From India, Madras
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Upon not serving the two-month notice period, the employee raised this issue with the senior HR manager, stating that he is willing to serve his full notice period (via email). The HR manager confirmed that the release is being processed in accordance with the organization's exit procedures. The reporting manager has signed a letter to the HR department indicating that the employee can be released on a specific day. The employee possesses a scanned copy of the letter.
In a scenario where the organization releases the employee before the end of the notice period, is the employee still obligated to pay the notice period buy-out? If not, does the employee have the option to rejoin the organization to complete the notice period, and can she request to do so?
Thank you.
From India, Madras
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Dear Karthika, Then no issues. The recovery will not be done if the management has accepted to relieve the employee before the notice period.
From India, Mumbai
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From India, Mumbai
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Thanks, Shenbagarajan, I spoke with my brother-in-law, who happens to be an attorney for a leading MNC. He laughed at my question and said, in this situation, I have no legal obligation to comply with any recovery request. Furthermore, I am at liberty to seek justice for harassment if they persist with such a request.
I thank you all for the quick response.
Regards,
Karthika
From India, Madras
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I thank you all for the quick response.
Regards,
Karthika
From India, Madras
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