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UMy partner works in a Japanese firm in India with a 3-month notice period. He had officially requested an early release through the HR portal, and the revised notice period of 2 months was approved by the company.
Based on this approved release date, he accepted and committed to a joining date with another company.
Now, close to his last working day, HR is saying they will hold/recover money in the Full & Final settlement for the remaining notice period. However, this was never clearly communicated at the time of approval.
Important points:
The early release request was officially approved by his manager.
He has screenshots/emails of the approval.
He is getting relieving and experience letters.
Wanted to understand:
If early release was approved, can the company still recover notice pay later?
Can they hold or deduct FNF like this without prior written clarification?
Is there any labour law or practical recourse in India for this situation?
Has anyone faced something similar in IT/corporate companies?
Would really appreciate practical/legal advice from people who’ve dealt with this before.
Note-This has been groomed using GPT, however words are of my own.
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DLawyer here. If the company formally approved the revised notice period and early release and your partner relied upon it to accept another employment opportunity, the company may face difficulty in subsequently recovering notice pay unless the approval itself expressly stated that the early release was conditional upon salary recovery. While many employment contracts do permit salary recovery in lieu of unserved notice, such recovery is generally expected to be transparent and communicated at the time of approval rather than introduced at the final stage after the employee has altered his position based on the company’s consent. If the relieving and experience letters are being issued, it also weakens the argument that the separation was unauthorized or in breach.
The first step should be a formal written representation to HR seeking the contractual basis and prior communication authorizing such deduction. If the deduction appears arbitrary or contrary to the approved release terms, remedies may include escalation internally, issuance of a legal notice, or approaching the labour authorities depending upon designation and applicability of labour statutes.
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UThank you for your detailed explanation .There is a formal acceptance from from his manager however his relieving letter has not yet been released as he is yet to submit his assets which is 1 week from now. How do we contact the labour authorities?
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DBefore approaching labour authorities, it would be advisable to first complete the asset handover formally and preserve all documentary records. Once the relieving process is completed, a written representation may be sent to HR seeking the contractual and policy basis for the proposed recovery. If the issue still remains unresolved, a complaint may be raised before the Labour authorities. In many cases, even a strongly drafted legal notice helps in resolving such disputes before escalation.
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