Salary Hike and Recovery Conditions
An employer has given a salary hike to all its employees uniformly based on salary benchmarking and similar industry practices for employee retention. Then, through a common office circular, a condition was put in place stating that if any employee leaves the organization within a period of one year from the date of the salary revision, the incremented amount will be recovered from the full and final settlement of the concerned employee.
Legality of Salary Recovery
Is it legal to recover the salary once paid to an employee by referencing the circular? In this case, no formal agreement was executed between the employee and employer, or in other words, the employee has not given any acknowledgment of the condition or circular. Please share your input.
From India, Madurai
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An employer has given a salary hike to all its employees uniformly based on salary benchmarking and similar industry practices for employee retention. Then, through a common office circular, a condition was put in place stating that if any employee leaves the organization within a period of one year from the date of the salary revision, the incremented amount will be recovered from the full and final settlement of the concerned employee.
Legality of Salary Recovery
Is it legal to recover the salary once paid to an employee by referencing the circular? In this case, no formal agreement was executed between the employee and employer, or in other words, the employee has not given any acknowledgment of the condition or circular. Please share your input.
From India, Madurai
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Whether the unconditional revision of existing salary is based on salary benchmarking or any other factor, it becomes a part and parcel of the contract of employment, either express or implied. In my opinion, therefore, the employer cannot subsequently introduce any conditions with retrospective effect.
From India, Salem
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6108From India, Salem
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Employee Salary file - India 2016 AB.xls
Salary-Note.doc