Regarding relocation allowance recovery
Querist :
Anonymous
(Querist) 25 July 2023
This query is : Resolved
As mentioned in my offer letter, relocation assistance can only be recovered in case of termination/resignation within one year from the date of joining. I have already completed around 20 months(6th Dec 2021 - 10th July 2023) and hence this deduction is not applicable to me.
But company is asking to return the same stating the reason given below.
"""Please note that all employees are required to relocate to the city of the office they are tagged to on or before their date of joining. Considering the multiple effects of the pandemic and many challenges that employees would have faced to complete this relocation, company had accommodated delayed relocation and provided employees as much as possible time to take care of their personal needs before taking any action/decision regarding relocation. Considering this, had to make necessary adjustments to the policies in terms of reimbursements and corresponding recovery. You would appreciate that in an ideal scenario, the Company would have required employees to relocate on or before their joining date (instead of a delayed relocation) and hence the recovery would reflect the date from which the assistance would be received by the employee.
Please note that we must adjust policies to align our practices with evolving market trends and business requirements. The policy on Relocation Assistance clearly states that ‘the relocation expenses that are reimbursed and the amount spent on accommodation is recovered in full along with applicable taxes, if the employee decides to leave the Company before one year from the date of payment’. (not stated before joining or during joining, changed in between)
Additionally, the Employment Agreement that governed your employment with Arcesium also provides and states that ‘The Employee agrees to abide by all policies, rules, and guidelines generally applicable to other employees of the Company. The Company’s policies, rules, and guidelines may be amended from time to time and shall be treated as incorporated in this Agreement’. Accordingly, note that the then current policy of the company will supersede the provisions of the Offer Letter.
For your question Also, was this policy shared with me before the joining date?(I asked this in mail chain) – We don’t share policies with employees before their date of joining owing to confidentiality.
Please be assured that this decision was not taken lightly and was made in accordance with our policy, which we truly believe continues to uphold the spirit of providing relocation assistance and imposing recovery in case of separation within one year from when the benefit was received. It is important to note that this recovery applies uniformly to all employees in similar situations. The rationale behind such a recovery is to ensure consistency and fairness in the application of our policies across the organization.
We understand that this recovery may cause some financial inconvenience, and we genuinely regret any negative impact this may have on you. However, we believe it is essential to maintain fairness and uphold the integrity of our policies for all employees.
Thank you for your understanding and cooperation in this matter. We appreciate your contributions during your tenure with us and wish you the very best in your future endeavors. """
What would you advise in this case?
kavksatyanarayana
(Expert) 25 July 2023
As the query is not understood to me as it is not clear to me.
T. Kalaiselvan, Advocate
(Expert) 25 July 2023
In the given context your understanding about the company's policy in this regard is iuncorrect.
The company has clearly stated that the time period counts from the date of the employee receiving this assistance and there is no mention about the date of joining.
The company has stated that the recovery will be effected for the resignation within one year from the date of receiving the assistance and not from the date of joining, hence your interpretation of the rule is incorrect.
If you are still adamant about the law to be correct as per your own interpretation, you can agitate over it legally and refuse to repay the amount over which the company may initiate proper legal action as per law to recover the amount .
Querist :
Anonymous
(Querist) 26 July 2023
The main thing is in my offer letter the policy which is mentioned is that the relocation assistance can only be recovered in case of termination/resignation within one year from the date of joining. However, after my joining this policy got changed somewhere in between to date of payment instead of date of joining which I was unaware of. But as mentioned in the employee agreement that employer has the right to amend policies and employees shall abide by them, they are asking for the return. I hope this has given you more clarification. Can you suggest me now?
Querist :
Anonymous
(Querist) 26 July 2023
The main thing is in my offer letter the policy which is mentioned is that the relocation assistance can only be recovered in case of termination/resignation within one year from the date of joining. However, after my joining this policy got changed somewhere in between to date of payment instead of date of joining which I was unaware of. But as mentioned in the employee agreement that employer has the right to amend policies and employees shall abide by them, they are asking for the return. I hope this has given you more clarification. Can you suggest me now?
T. Kalaiselvan, Advocate
(Expert) 26 July 2023
Yes you have agreed to abide by the company's policy including the policies which will be amended from time to time.
Therefore the policy of the company in this regard which was amended in between is binding on you.
Hence you are required to comply with the policy conditions in this regard
