Company "A" hired a person who was working with company "B".
As per the terms of the appointment, in case of separation, both parties (the person and Company "B") must give a notice of 90 days/3 months or notice pay in lieu of notice.
During the interview process, the person informed the same to company "A" when company "A" offered him to join with a month's notice. Company "A" assured the person to reimburse 60 days' notice pay salary, whatever the person needs to pay to company "B" in lieu of such a period of notice.
Accordingly, the person submitted his resignation with a notice of 15 days instead of 90 days and paid the notice pay of 75 days. This was accepted by company "B," and the person was released after 15 days of notice from company "B."
Full and Final Settlement with Company "B"
At the time of Full and Final settlement, company "B" issued the following statement to the person:
Sec. A.: Payable by company "B" to the person
1. Outstanding salary for the last month
2. 15 days' salary
3. Yearly Bonus on a prorated basis
4. Leave Encashment based on the person's presence throughout the year till the last working days
Sec. B.: Recoverable from the person to Company "B"
1. Applicable Tax on Sec. A
2. 75 days short notice payment recovery
Sec. C.: Sec. A - Sec. B = Net Recoverable/(Payable) by the person to company "B" or vice versa
Accordingly, the person paid the Full and Final settlement amount to Company "B" and received his clearance and other relieving documents from Company "B."
Issue with Reimbursement from Company "A"
Now, after joining company "A," when the person submitted a claim for his reimbursement of 60 days' notice payment, which he paid to company "B," company "A" HR asked the person to adjust his Leave Encashment with his notice pay. Instead of reimbursing the agreed 60 days' period of notice, they are forcing the person to accept the reimbursement of the net of days of short notice (60 days less leaves earned by that person in company "B" during his tenure in company "B").
Is this act of company "A" right? If yes, what are the grounds for the same?
If not, what does the person need to do for his rights?
Requesting every senior and professional here to kindly assist with a well-accepted argument supported by law and logic.
Will be grateful for case study support on the above too (If available).
From Niger, undefined
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As per the terms of the appointment, in case of separation, both parties (the person and Company "B") must give a notice of 90 days/3 months or notice pay in lieu of notice.
During the interview process, the person informed the same to company "A" when company "A" offered him to join with a month's notice. Company "A" assured the person to reimburse 60 days' notice pay salary, whatever the person needs to pay to company "B" in lieu of such a period of notice.
Accordingly, the person submitted his resignation with a notice of 15 days instead of 90 days and paid the notice pay of 75 days. This was accepted by company "B," and the person was released after 15 days of notice from company "B."
Full and Final Settlement with Company "B"
At the time of Full and Final settlement, company "B" issued the following statement to the person:
Sec. A.: Payable by company "B" to the person
1. Outstanding salary for the last month
2. 15 days' salary
3. Yearly Bonus on a prorated basis
4. Leave Encashment based on the person's presence throughout the year till the last working days
Sec. B.: Recoverable from the person to Company "B"
1. Applicable Tax on Sec. A
2. 75 days short notice payment recovery
Sec. C.: Sec. A - Sec. B = Net Recoverable/(Payable) by the person to company "B" or vice versa
Accordingly, the person paid the Full and Final settlement amount to Company "B" and received his clearance and other relieving documents from Company "B."
Issue with Reimbursement from Company "A"
Now, after joining company "A," when the person submitted a claim for his reimbursement of 60 days' notice payment, which he paid to company "B," company "A" HR asked the person to adjust his Leave Encashment with his notice pay. Instead of reimbursing the agreed 60 days' period of notice, they are forcing the person to accept the reimbursement of the net of days of short notice (60 days less leaves earned by that person in company "B" during his tenure in company "B").
Is this act of company "A" right? If yes, what are the grounds for the same?
If not, what does the person need to do for his rights?
Requesting every senior and professional here to kindly assist with a well-accepted argument supported by law and logic.
Will be grateful for case study support on the above too (If available).
From Niger, undefined
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The employee wants to join a new company that is only willing to wait for 30 days. Therefore, he needs to pay the previous company for the notice period he cannot fulfill. If he didn't have the buyout bonus, he would definitely adjust everything he could and then leave, paying the minimum.
Why do you think the company will let him earn more or pay more than what he himself has paid?
If your wording is right, then see what you wrote: "Company ‘A’ assured the person to reimburse 60 days’ notice pay salary, whatever the person needs to pay to company ‘B’ in lieu of such a period of notice."
Whatever the person needs to pay. He needed to pay less, so he will get less.
As for the 'recovery of his right,' it now depends on the agreement he signed and how many days he wants to be there before they terminate him.
From India, Mumbai
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2508Why do you think the company will let him earn more or pay more than what he himself has paid?
If your wording is right, then see what you wrote: "Company ‘A’ assured the person to reimburse 60 days’ notice pay salary, whatever the person needs to pay to company ‘B’ in lieu of such a period of notice."
Whatever the person needs to pay. He needed to pay less, so he will get less.
As for the 'recovery of his right,' it now depends on the agreement he signed and how many days he wants to be there before they terminate him.
From India, Mumbai
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