Hi,
I recently resigned from an MNC where I served for 12 years. In my resignation letter, I had mentioned that I am leaving due to personal reasons and requested an early release.
Management and HR agreed and asked me to serve for 45 days for handover instead of the 90-day notice period (confirmed by email). I completed all handover activities during my reduced notice period.
I was relieved with a waiver of the 45 days' notice period, and the Final settlement and release letter was signed off by HR, Management, with no payout/deductions for the shortfall in the notice period mentioned. In fact, considering my long service, they even agreed to pay accumulated leave.
Later, when I joined a new company (their competitor), my ex-employer's HR came back and asked me to sign a revised final settlement and release letter with a payout for the shortfall (45 days), claiming I had misled them with a waiver request for medical reasons. As I had made no such request, either in writing or in my verbal discussion, I refused to accept the revised settlement letter.
Later, after 3 weeks, my ex-employer unilaterally decided to deduct 45 days' salary (~5 lakh) from my Gratuity payment and made the final settlement.
After repeated follow-up, asking for a breakdown of the deductions made, I received an email from HR stating they had deducted the money to comply with Company/HR policy.
I request the forum members to advise me on the further course of action, including my legal rights on this matter.
From India
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I recently resigned from an MNC where I served for 12 years. In my resignation letter, I had mentioned that I am leaving due to personal reasons and requested an early release.
Management and HR agreed and asked me to serve for 45 days for handover instead of the 90-day notice period (confirmed by email). I completed all handover activities during my reduced notice period.
I was relieved with a waiver of the 45 days' notice period, and the Final settlement and release letter was signed off by HR, Management, with no payout/deductions for the shortfall in the notice period mentioned. In fact, considering my long service, they even agreed to pay accumulated leave.
Later, when I joined a new company (their competitor), my ex-employer's HR came back and asked me to sign a revised final settlement and release letter with a payout for the shortfall (45 days), claiming I had misled them with a waiver request for medical reasons. As I had made no such request, either in writing or in my verbal discussion, I refused to accept the revised settlement letter.
Later, after 3 weeks, my ex-employer unilaterally decided to deduct 45 days' salary (~5 lakh) from my Gratuity payment and made the final settlement.
After repeated follow-up, asking for a breakdown of the deductions made, I received an email from HR stating they had deducted the money to comply with Company/HR policy.
I request the forum members to advise me on the further course of action, including my legal rights on this matter.
From India
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Do you have any copy of the mail communication for reducing the notice period without any buyback?
As per the Payment of Gratuity Act, the employer shall not deduct/adjust the Gratuity amount. The same shall be forfeited only in the case of termination due to misconduct. You can send a formal email mentioning the appropriate clauses in the Act to the HR. If there is no response, you can escalate the matter by stating that you will raise a complaint with the appropriate authorities.
From India, Bangalore
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653As per the Payment of Gratuity Act, the employer shall not deduct/adjust the Gratuity amount. The same shall be forfeited only in the case of termination due to misconduct. You can send a formal email mentioning the appropriate clauses in the Act to the HR. If there is no response, you can escalate the matter by stating that you will raise a complaint with the appropriate authorities.
From India, Bangalore
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Without any specific court order, gratuity cannot be attached or any deduction can be made, and it is illegal. Please approach the controlling authority under the PG Act for recovery.
S K Bandyopadhyay (WB, Howrah)
CEO - USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah)
CEO - USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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