I joined a big Indian company almost a year ago. I received half a month's salary. Then, after a few days, I resigned from that company as I was getting a great opportunity. After 10 days, I got approval from the manager. Initially, I considered it as early relief from the manager, but at the time of submitting all the assets, I was informed that there would be a notice pay recovery for 20 days. I received an email from the company for a recovery amount of around 30K (GST included) almost a month later. I didn't reply.
Then, I got a reminder on the same thread a couple of months afterward. Now, after a year, I received a hard letter from them, demanding the full recovery amount plus 18% interest for a year. I wanted to ask, is it legal to ask for recovery money if I only spent one month in the company (including notice days)? If it's legal, do I need to pay the GST plus interest as well?
From India, Mumbai
Acknowledge(0)
Amend(0)
Then, I got a reminder on the same thread a couple of months afterward. Now, after a year, I received a hard letter from them, demanding the full recovery amount plus 18% interest for a year. I wanted to ask, is it legal to ask for recovery money if I only spent one month in the company (including notice days)? If it's legal, do I need to pay the GST plus interest as well?
From India, Mumbai
Acknowledge(0)Amend(0)
Notice Period and Legal Obligations During Probation
Please check your offer of appointment for the notice period during the probationary period. If you have accepted the offer or any other document (like a service bond) containing such a term, then you are legally bound to pay the salary for the remaining notice period. Regarding interest, payment of interest follows when there is a delay in remitting the due amount.
It is unlikely that the company will pursue litigation against you to recover the amount as the cost of litigation would be higher. You can offer to pay 20 days' salary to settle the matter. It seems that you were relieved from service without any mention of dues towards the payment of the remaining notice period. This could work in your favor in case of any future litigation.
From India, Mumbai
Acknowledge(1)Amend(0)
1593Please check your offer of appointment for the notice period during the probationary period. If you have accepted the offer or any other document (like a service bond) containing such a term, then you are legally bound to pay the salary for the remaining notice period. Regarding interest, payment of interest follows when there is a delay in remitting the due amount.
It is unlikely that the company will pursue litigation against you to recover the amount as the cost of litigation would be higher. You can offer to pay 20 days' salary to settle the matter. It seems that you were relieved from service without any mention of dues towards the payment of the remaining notice period. This could work in your favor in case of any future litigation.
From India, Mumbai
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
Notice period.jpg