Hi everyone, I am looking for some guidance on my current employment situation. I joined my company with a joining bonus of INR 1,324,602, but the contract says if I leave within 3 years, I have to pay back the full amount plus the taxes the company paid (grossed-up).
Additionally, in December 2025, I was given a performance and exceptional bonus totaling INR 927,221. Now there is a condition that if I leave before September 30, 2026, I have to refund 50% of this amount (around INR 4.63 Lakhs) as well.
I want to resign now and serve my full 3-month notice period as per the contract. However, I have seen that for other colleagues who left recently, the company did not pay them any salary for their 3-month notice period. The company told them that since the bonus recovery amount they owe is more than their 3 months' salary, the company will just keep the salary to adjust the debt.
I am very worried about the following:
Salary Withholding: Can the company legally stop my monthly salary during my notice period to recover these bonus amounts? I need my salary to pay my monthly bills.
Bonus Recovery: Is it legal for them to ask for the full joining bonus back, including the tax portion, even if I have worked there for a significant time?
Relieving Letter: If I cannot pay the huge balance amount immediately after they deduct my salary, can they refuse to give me my relieving letter and experience certificate? I need these documents to join my next job.
Non-Compete: My contract also mentions a 12-month non-compete clause. Can they actually stop me from working in the same industry after I leave?
I just want to leave the company properly by serving my notice, but I cannot afford to work for 3 months for free or pay back such huge amounts. Please advise what my rights are under labor law.
