• Asked to return retention bonus but no contract or no policy to return exists.

I was employed since Dec 2019 with a company based out of Mumbai, India and my last working date for the establishment was 1st April 2022. In October, 2021 I was approved for an appraisal and a retention bonus. The details were as below 
1 month salary to be paid as bonus with the salary of Dec 2021 
1 month salary to be paid as bonus with the salary of March 2022
All of this was just on an email chain with the manager and Hr and only these details mentioned above were stated in the email. There was no contract drawn up and signed and no talk of paying back the retention bonus if I left the company. Today I have gotten an email from the HR regarding the full and final settlement. They have informed me that my salary of March 2022 will not be paid because I took the retention bonus in Dec 2021 and I have to pay them back the difference in the salary and the bonus. Can they do this ? If there was no contract and no policy agreed regarding pay back can they enforce this ? If there was no such policy and I fight them can I even get the retention bonus that was to be paid with March 2022’s salary ? I do not want the second retention bonus honestly , I just want my last months salary but if they decide to harass me I would not mind fighting for the second retention bonus as well. Also my appointment letter or any other letter I have ever signed does not contain any terms regarding a paying back of the retention bonus as well.
Asked 3 years ago in Labour

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6 Answers

They cannot enforce pay back of bonus 

 

2) there is no clause in contract that if you leave organisation you would not. Get bonus 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You are right at your point. Company can't deduct March 2022 salary against retention bonus of Dec 2021.

 

But here you're not eligible for March 2022 retention bonus as you are not working with the company.

 

If there is no agreement between both the parties for return policy of retention bonus then company do not have any rights to recover first retention bonus amount as you have already served that period with company.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

The employment offer letter conditions will prevail.

The new rules or law cannot be implemented by the employer at his whims.

If the HR has issue a notice demanding the return of bonus paid earlier, then you can challenge the same by issuing a reply notice stating that their demand and refusal to pay your salary for the period of work extracted from you is illegal and they would be dragged to the labor court for contradicting the labor law of the land.

If necessary you can take the assistance of a local or a lawyer from this forum too to properly deal with this situation against the employer.

 

 

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

Having once paid retention bonus with salary of  December 2021 and having declared to pay subsequently, the employer is bound to pay the same to you. Any claim to the same may delay you fnf, relieving letter, experience certificate and other credentials. Collect you credentials and relieving letter signing fnf and then proceed against employer in civil Court. Your package works out to be more than 20k per month, you cannot approach labor Court. Signing of fnf will not deprive you of your right to approach civil Court as any escalation before signing fnf would have delayed your relieving letter and credentials.  

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Dear Client,

As per the facts provided, they cannot ask you to pay back any amount if there is no such contract and it is not mentioned in your appointment letter or any policy.

Thank You

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

You can oppose it. Send a legal notice

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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