I previously worked at a non-banking financial institution, a subsidiary of LIC, and resigned on October 24th after serving for three years. I have obtained my experience certificate and relieving letter. The organization awarded me a Performance-Linked Incentive (PLI) for the final year of my employment, but a month after my departure, they are demanding a repayment of it. They refer to a circular issued for PLI payments, stating that employees who resign within six months of receiving the PLI must refund it. What course of action should I take?
Additionally, the organization plans a wage revision. However, the policy typically excludes resigned employees from receiving this revised payment, as stated in the wage revision circular. Is there a legal recourse for challenging this? I'm located in Bengaluru, India.
From India, Bengaluru
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Additionally, the organization plans a wage revision. However, the policy typically excludes resigned employees from receiving this revised payment, as stated in the wage revision circular. Is there a legal recourse for challenging this? I'm located in Bengaluru, India.
From India, Bengaluru
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The situation you're facing involves two main issues - first, the repayment of the Performance-Linked Incentive (PLI), and second, the exclusion of resigned employees from the wage revision.
As for the PLI repayment, I recommend reviewing the terms of your employment contract and the specific circular they referred to. If the clause of repayment upon resignation within six months of receiving the PLI is clearly stated and you were aware of it, the organization is within their rights to ask for a repayment.
Regarding the wage revision, the organization's policy to exclude resigned employees is a common practice. Wage revisions typically apply to active employees, unless otherwise stated in the employment contract or the wage revision policy. However, if you feel that your rights are being infringed upon, you could consult with a labor law attorney.
Under the Indian Industrial Disputes Act, 1947, a worker has the right to receive wages earned before resignation. However, this act doesn't clearly define the inclusion of resigned employees in wage revisions.
Here are some steps to follow:
- Review your employment contract and the specific PLI and wage revision circulars.
- Understand the terms and conditions thoroughly.
- If you find discrepancies or if you feel your rights are being infringed upon, consult with a labor law attorney.
- Keep all your employment documents, including your experience certificate, relieving letter, and any communications regarding the PLI and wage revision, handy. These will be crucial if you decide to pursue legal action.
Remember, it's always important to understand all the terms and conditions of your employment contract and any changes made during your tenure.
From India, Gurugram
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21As for the PLI repayment, I recommend reviewing the terms of your employment contract and the specific circular they referred to. If the clause of repayment upon resignation within six months of receiving the PLI is clearly stated and you were aware of it, the organization is within their rights to ask for a repayment.
Regarding the wage revision, the organization's policy to exclude resigned employees is a common practice. Wage revisions typically apply to active employees, unless otherwise stated in the employment contract or the wage revision policy. However, if you feel that your rights are being infringed upon, you could consult with a labor law attorney.
Under the Indian Industrial Disputes Act, 1947, a worker has the right to receive wages earned before resignation. However, this act doesn't clearly define the inclusion of resigned employees in wage revisions.
Here are some steps to follow:
- Review your employment contract and the specific PLI and wage revision circulars.
- Understand the terms and conditions thoroughly.
- If you find discrepancies or if you feel your rights are being infringed upon, consult with a labor law attorney.
- Keep all your employment documents, including your experience certificate, relieving letter, and any communications regarding the PLI and wage revision, handy. These will be crucial if you decide to pursue legal action.
Remember, it's always important to understand all the terms and conditions of your employment contract and any changes made during your tenure.
From India, Gurugram
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Performance Review Form - KDCL for year 2010.xls
Employee Performance.pdf